Oclaro Down On FQ1 Outlook; Sector Falls After Hours
Oclaro (NASDAQ: OCLR) was down nearly six percent in after-hours action Wednesday when the company said a decline in 40G and lower-speed legacy products for fiber-optic networks will result in disappointing fiscal first-quarter revenue.
Other optical networking stocks were also falling in the extended session: JDS Uniphase (NASDAQ: JDSU), which earlier offered similarly weak guidance, was down more than eight percent, Finisar (NASDAQ: FNSR) fell 2.5 percent and Oplink (NASDAQ: OPLK) lost 0.6 percent.
Oclaro forecast first-quarter revenue of $83 million to $91 million versus Wall Street's expectation of $99.3 million.
The company also forecast a first-quarter adjusted gross margin of 12 percent to 16 percent, compared with a fourth-quarter adjusted gross margin of 14 percent.
Oclaro company expects higher profits in fiscal 2015 through a lower cost structure and "strong demand for new 100G products," Chief Executive Greg Dougherty said in a statement.
Its fourth-quarter net loss from continuing operations narrowed to $11.3 million from $43.6 million a year earlier. The adjusted loss narrowed to $0.03 per share from $0.30.
Revenue in the recent period was nearly flat at $95.9 million compared with $95.4 million a year earlier.
Wall Street expected a loss of $0.15 per share, on revenue of $96.4 million.
Oclaro traded recently at $1.80 a share, down 5.7 percent.
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