Oclaro posts record results

Optical component maker Oclaro just reported tonight.

Here are the financials from their earnings release:

http://www.prnewswire.com/news-releases/oclaro-announces-sec…

Oclaro Announces Second Quarter Fiscal Year 2016 Financial Results
Continued Strong Growth in 100G Leads to Higher Gross Margin and Net Income
SAN JOSE, Calif., Feb. 2, 2016 /PRNewswire/ – Oclaro, Inc. (Nasdaq: OCLR), a leading provider and innovator of optical communications solutions, today announced the financial results for its second quarter of fiscal year 2016, which ended December 26, 2015.

“With a second consecutive quarter of 20 percent sales growth in our 100G portfolio we again delivered stronger financial performance. The quarterly revenue growth drove higher gross margin and net income,” said Greg Dougherty, Chief Executive Officer, Oclaro. “We continue to see robust demand for our 100G product portfolio combined with favorable market conditions. As we expand capacity in Asia, both for our current and new 100G products, we expect revenue growth in 2016 to continue.”

Results for the Second Quarter of Fiscal 2016


Revenues were **$94.1 million** for the second quarter of fiscal 2016, 
compared with revenues of $87.5 million in the first quarter of fiscal 2016.

GAAP gross margin was 28.3% for the second quarter of fiscal 2016, 
compared with GAAP gross margin of 25.9% in the first quarter of fiscal 2016.

Non-GAAP gross margin was **28.8%** for the second quarter of fiscal 2016, 
compared with non-GAAP gross margin of 26.4% in the first quarter of fiscal 2016.

GAAP operating income was $2.5 million for the second quarter of fiscal 2016. 
This compares with a GAAP operating loss of $2.0 million in the first quarter of fiscal 2016.

Non-GAAP operating income was $5.3 million for the second quarter of fiscal 2016, 
compared with non-GAAP operating income of $0.4 million in the first quarter of fiscal 2016.

GAAP net income for the second quarter of fiscal 2016 was $0.2 million. 
This compares with a GAAP net loss of $3.5 million in the first quarter of fiscal 2016.

Non-GAAP net income for the second quarter of fiscal 2016 was $3.1 million. 
This compares with a non-GAAP net loss of $1.8 million in the first quarter of fiscal 2016.

Adjusted EBITDA was **$9.0 million** for the second quarter of fiscal 2016, 
compared with $4.2 million in the first quarter of fiscal 2016.

Cash, cash equivalents, restricted cash, and short-term investments were $115.7 million at December 26, 2015.

Second Quarter Fiscal Year 2016 Outlook

The guidance for the quarter ending March 26, 2016 is:

Revenues in the range of $97 million to $103 million.

Non-GAAP gross margin in the range of 26% to 28%.

Non-GAAP operating income in the range of $2 million to $6 million.

Taking a peek back at the 1st quarter, here is where they guided:

Second Quarter Fiscal Year 2016 Outlook

The guidance for the quarter ending December 26, 2015 is:


Revenues in the range of $88 million to $94 million. **(vs 94.1 reported)**
Non-GAAP gross margin in the range of 24% to 27%. **(vs 28.8% reported)**
Adjusted EBITDA in the range of $3 million to $7 million. **(vs $9 million reported)**

That folks is a smash. Shares were already up 4% after Fabrinet’s earnings beat last night. Tonight they are up another 8% in AH after reporting these results.

There is one more optical component maker to watch, and that is Lumentum (LITE). They report on Thursday. So far with 2 out of 3 big names reporting (and knocking the cover out of the park) I’m feeling more and more confident about the type of results we’ll see from Infinera when they report next Thursday.

Best,
–Kevin

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