Optical communications systems developer Oclaro has presented positive financial results for its third quarter of fiscal year 2017, which ended April 1, 2017.
Revenues were $162.2 million for the quarter, compared with $153.9 million in Q2 2017, and $101.1 million in Q3 2016. Gross margin was 41.6% for Q3, compared with 39.8% in Q22017, and 27.2% in Q3 2016.
Operating income was $40.5 million for Q3, compared with $36.2 million in Q2, and $4.6 million in Q3 2016. Net income for Q3 2017 was $39.9 million. This compares with $36.3 million in Q2 2017, and $3.3 million in Q3 2016. (All the above figures are non-GAAP). Earnings per diluted share for Q3 2017 were $0.23, compared with $0.21 in Q2 2017, and $0.03 in Q3 2016. Cash, cash equivalents, restricted cash, and short-term investments were $254.8 million at April 1, 2017.
Greg Dougherty, Chief Executive Officer, Oclaro, commented, “I am very pleased with our outstanding financial performance for the third quarter. We posted record results, which included revenue growth and improved gross margin during what is normally a seasonally weak period.”
He continued, “Our revenue increased 60 percent over the same period one year ago, driven by our 100G and beyond products. We also achieved further customer and regional diversification, driven by sales growth in North America and Europe. This strong revenue performance resulted in record gross margin of 42 percent and operating income of $40 million.
“During April 2017, we saw a significant slowing of demand in China which, coupled with an acceleration of the product transition from 100G CFP-related products to the QSFP platform, will cause us to see an approximate 10 percent sequential decrease in our revenue in the June quarter.
“Despite lower revenue, the company anticipates that our non-GAAP gross margin should remain around 40 percent as we maintain healthy profitability, further attesting to the strength of our financial model. We believe that the industry fundamentals, which drive the need for increased bandwidth and fiber optic components, remain intact and anticipate returning to revenue growth in the September quarter,” said Dougherty.
The company also published guidance for the next business quarter, which ends July 1, 2017: “Revenues will be in the range of $144 million to $152 million; gross margin in the range of 38% to 41%; and operating income in the range of $27 million to $31 million”. (Again, all figures are non-GAAP).
More information at www.oclaro.com