Oclaro Down On FQ1 Outlook; Sector Falls After Hours

Oclaro Inc.

was down nearly 6 percent in after-market 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 Corp.

, which earlier offered similarly weak guidance, was down more than 8 percent, Finisar Corp.

fell 2.5 percent and Oplink

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 cents a share from $0.30 cents Revenue in the recent period were nearly flat at $95.9 million compared with $95.4 million a year earlier. Wall Street expected a loss of 15 cents a share, on revenue of $96.4 million. Oclaro traded recently at $1.80 a share, down $0.11 cents.