In another sign of extended weakness in the overall optical communications market, Oclaro, Inc. (NASDAQ: OCLR) revealed October 5 after the markets closed that it would fall short of its revenue guidance for the first quarter of fiscal year 2013.
Oclaro had projected that revenues for the quarter would range between $154 million and $168 million (see “Oclaro concludes fiscal 2012, sees flat market in second half”). However, a first glance at the ledger after the quarter closed September 29 now leads company management to believe revenues will come in at approximately $149 million.
The quarter is the first that features the combined revenues of the Oclaro and Opnext; the merger of the two companies closed July 23.
Oclaro cited “challenging market conditions”; slower than expected recovery of customer share of “certain products,” including some datacom products, to the levels enjoyed before both Oclaro and Opnext experience production problems due to flooding in Thailand last fall; and the slower ramp of new products, particularly certain customer-qualified 40G and 100G products.
"We are disappointed that the revenues for the first quarter of our 2013 fiscal year are below guidance," said Alain Couder, chairman and CEO of Oclaro. "Following the merger, our integration activities are on track to execute our synergies, and our customer relationships are strong. We expect these factors to strengthen our future performance and expect revenues to be up in the December quarter."
Despite the assurances, Oclaro’s stock and those of several other optical communications technology producers took a hit. Oclaro shares lost 9.3% yesterday in afternoon trading.
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