Oclaro announces record results for 2017
Annual revenue grows 47 percent with operating income of 20 percent but Q4 results are disappointing
Oclaro, an optical communications company, has announced record financial performance for the year 2017, with year-over-year revenue growth of 47 percent, and significantly higher profits.
"Our excellent results were driven by the strength of our 100G and beyond product portfolio whose revenue doubled over fiscal year 2016. The most significant growth came from our industry leading CFP2-ACO and QSFP28 product family," said Greg Dougherty, CEO, Oclaro.
"Our fourth quarter revenue, which reflected the anticipated impact of softness in China, was in line with our expectations. While revenue declined, we once again delivered very strong gross margin and operating profits.
"As we enter fiscal year 2018, we expect to see continued high demand for our 100G and beyond products in the Data Center and Metro Markets. We also expect to be able to maintain our strong margin performance in fiscal 2018," said Dougherty.
2017 Yearly results
Revenues were $601.0 million for fiscal 2017, compared with $407.9 million in fiscal 2016. GAAP gross margin was 39.1 percent for fiscal 2017, compared with 28.5 percent in fiscal 2016. Non-GAAP gross margin was 39.5 percent for fiscal 2017, compared with 29.0 percent in fiscal 2016.
GAAP operating income was $119.0 million for fiscal 2017, compared with $15.8 million in fiscal 2016. Non-GAAP operating income was $130.9 million for fiscal 2017, compared with $25.1 million in fiscal 2016. GAAP net income for fiscal 2017 was $127.9 million, compared with $8.6 million in fiscal 2016. Non-GAAP net income for fiscal 2017 was $130.1 million, compared with $19.2 million in fiscal 2016.
GAAP earnings per diluted share for fiscal 2017 were $0.77, compared with $0.08 in fiscal 2016. Non-GAAP earnings per diluted share for fiscal 2017 were $0.79, compared with $0.17 in fiscal 2016.
Q4 Results
Revenues were $149.4 million Q4 2017. This compares with revenues of $162.2 million in Q3 2017, and revenues of $125.2 million in Q4 2016.
GAAP gross margin was 41.1 percent in Q4 2017. This compares with GAAP gross margin of 41.2 percent in Q3 2017, and GAAP gross margin of 32.1 percent in Q4 2016. Non-GAAP gross margin was 41.4 percent in Q4 2017. This compares with non-GAAP gross margin of 41.6 percent in Q3 2017, and non-GAAP gross margin of 32.4 percent in Q4 2016.
GAAP operating income was $29.9 million in Q4 2017. This compares with GAAP operating income of $37.7 million in Q3 2017, and GAAP operating income of $12.8 million in Q4 2016. Non-GAAP operating income was $33.3 million Q4 2017. This compares with non-GAAP operating income of $40.5 million in Q3 2017, and non-GAAP operating income of $14.9 million in Q4 2016.
GAAP net income Q4 2017 was $56.0 million. This compares with GAAP net income of $38.2 million in Q3 2017, and GAAP net income of $11.8 million in Q4 2016. Non-GAAP net income Q4 2017 was $33.9 million. This compares with non-GAAP net income of $39.9 million in Q3 2017, and non-GAAP net income of $14.4 million in Q4 2016.
GAAP earnings per diluted share Q4 2017 were $0.33. This compares with GAAP earnings per diluted share of $0.22 in Q3 2017, and GAAP earnings per diluted share of $0.09 in Q4 2016. Non-GAAP earnings per diluted share Q4 2017 were $0.20. This compares with non-GAAP earnings per diluted share of $0.23 in Q3 2017, and non-GAAP earnings per diluted share of $0.11 in Q4 2016.
Q1 2018 Outlook
The guidance for the quarter ending September 30, 2017 is: Revenues in the range of $151 million to $159 million; non-GAAP gross margin in the range of 38 percent to 41 percent; and non-GAAP operating income in the range of $30 million to $34 million.
