News Article
Oclaro beats financial target with $86 million in revenue
The company is still flourishing despite the Thailand floods and currently expects four of the five flood affected product lines to have restarted commercial output at Fabrinet's Pinehurst facility by the end of January
Oclaro, a provider of innovative optical communications and laser solutions, has provided further details about the progress of the company's recovery efforts from the flooding in Thailand.
The Company also announced preliminary revenues of approximately $86 million for the quarter ended December 31, 2011 compared to a guidance range of $75 million to $85 million which was provided by the Company on November 9, 2011.
"Our top priority has been to restart production in Thailand following the intensive floods, and minimise any impact to our customers," said Alain Couder, chairman and CEO, Oclaro. "As a result of the efforts of our teams in Thailand and around the world, we have made substantial progress in restarting production for our affected product lines. These efforts have also contributed to our achieving preliminary revenues for the December quarter above the top end of our guidance range."
Oclaro currently expects four of the five flood affected product lines to have restarted commercial output at Fabrinet's Pinehurst facility by the end of January.
Commercial shipments of high-powered lasers resumed in November and production capacity is currently at pre-flood levels. Commercial shipments of amplifiers resumed in the last week of December and production capacity is expected to increase to pre-flood levels by the end of the March quarter. Commercial shipments of tunable dispersion compensators are expected to begin by the end of January and production capacity is expected to increase to pre-flood levels by the end of the March quarter.
Commercial shipments of lithium niobate external modulators are expected to begin by the end of January and production capacity is expected to return to pre-flood levels early in the June quarter. Commercial shipments of WSS products are expected to begin at the end of the March quarter and production capacity is expected to return to pre-flood levels in the June quarter. In the meantime limited commercial output of lithium niobate external modulators and WSS products is being delivered from some of its existing Western sites.
Oclaro currently expects capital expenditures of approximately $6 million in each of the second (December) and third (March) fiscal quarters. These amounts include the necessary capital currently expected to recover product lines lost during the flood. Oclaro believes it has adequate property and business interruption insurance to cover its flood related losses.
Oclaro also has certain insurance recovery rights under its supply agreement with Fabrinet. While the total amount of insurance claims, and related recoveries, if any, cannot be estimated at this time, Oclaro currently believes that an advance payment from its insurance carrier in excess of $10 million is likely to be received in the March fiscal quarter.
