News Article
Thailand floods cause Oclaro revenues to slide 28%
The optical communications and laser innovator had revenues of $86.5 million for the second quarter of fiscal 2012, compared to revenues of $120.3 million for Q2 FY 2011
Oclaro has announced its financial results for its second quarter of fiscal year 2012, which ended December 31, 2011.
Revenues were $86.5 million for the second quarter of fiscal 2012, compared to revenues of $105.8 million in the first quarter of fiscal 2012.
"In the second quarter of fiscal 2012, Oclaro achieved revenue at the high end of our previous guidance range, primarily due to our recovery efforts from the recent Thailand flooding," said Alain Couder, chairman and CEO of Oclaro.
"We are pleased with our recovery progress thus far. We expect full commercial production by the end of March for three of our five affected product lines and within the June quarter for the remaining two. In spite of the flood, we remain focused on enabling Oclaro to emerge from this period better positioned than before, in terms of our market position on certain existing products, recent introductions and our pipeline of new products and new technologies."
When asked if orders from customersconcerned about supply chain continuity and part availability have improved as a result of the Thailand floods, Couder commented, "No, I think we have been seeing something pretty stable. We also have some good customer relationships where even if our customers have been asking for more from some of our competitors on a temporary basis, we have some assurance from them that they will get back to us. On the other end, we benefited from the same thing on a few product lines where our competition couldn't supply and we did supply, but overall, it's balanced, I would say."
GAAP results
Gross margin was 13% for the second quarter of fiscal 2012, compared to a gross margin of 23% in the first quarter of fiscal 2012. Operating loss was $33.6 million for the second quarter of fiscal 2012, which included $9.1 million flood-related write-offs and expenses due to the flooding in Thailand, compared to an operating loss of $10.2 million in the first quarter of fiscal 2012.
Adjusted EBITDA was negative $14.3 million for the second quarter of fiscal 2012, compared to negative $4.5 million in the first quarter of fiscal 2012.
Net loss for the second quarter of fiscal 2012 was $31.1 million, which included $9.1 million flood-related write-offs and expenses due to the flooding in Thailand, compared to a net loss of $10.2 million in the first quarter of fiscal 2012.
Cash, cash equivalents and restricted cash were $54.2 million as of December 31, 2011 compared to $51.7 million at the end of September. No additional amounts were drawn under the Company's $45 million credit facility in the quarter.
Third Quarter Fiscal 2012 Outlook
For the third quarter of fiscal 2012, which ends March 31, 2012, Oclaro expects revenues in the range of $90 million to $97 million. Adjusted EBITDA is anticipated to be in the range of negative $13.5 million to negative $9 million.
Oclaro hosted a conference call to discuss financial results of the latest quarter. The replay may be accessed until February 2, 2012 by dialling (858) 384-5517. The passcode for the replay is 4506880.
A webcast of the call and a supplemental presentation is available in the investor section of Oclaro's website at www.oclaro.com.
When asked if orders have improved as a result of the flooding from customers Alain Couder,President and Chief Executive Officer of Oclaro commented "No, I think we have been seeing something pretty stable. We also have some good customer relationships where even if our customers have been asking for more from some of our competitors on a temporary basis, we have some assurance from them that they will get back to us. On the other end, we benefited from the same thing on a few product lines where our competition couldn't supply and we did supply, but overall, it's balanced, I would say."
