Thailand floods still creating havoc with Oclaro revenues
Oclaro, a provider and innovator of optical communications and laser products, has announced financial results for its third quarter of fiscal year 2012, which ended March 31, 2012.
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Revenues were $88.7 million for Q3 FY 2012, compared with revenues of $86.5 million in Q3 FY 2012 and $115.7 million in Q3 FY 2011. Like the previous quarter, revenues and operating results for the last quarter were impacted by the flooding in Thailand. Revenues for Q3 FY 2012 were also adversely impacted by approximately $4 million by a short-term work stoppage in Shenzhen, which has since been resolved.
All results described below use GAAP principles.
Gross profit for Q3 FY 2012 was $13.7 million, slightly higher than the previous quarter where it was $10.9 million, but more than half of the gross profit achieved the same quarter last year, where $28.4 million was recorded.
Gross margin was 15% for the third quarter of fiscal 2012, compared with a gross margin of 13% in the second quarter of fiscal 2012 and 25% in the third quarter of fiscal 2011.
Operating loss was $15.9 million for the third quarter of fiscal 2012, which included $3.3 million of flood-related income from insurance advances, net of additional write-offs and expenses, due to the flooding in Thailand, compared with a GAAP operating loss of $33.6 million in the second quarter of fiscal 2012, which included $9.1 million of flood-related write-offs and expenses. Operating loss in Q3 FY 2011 was $6.6 million.
Net loss for the third quarter of fiscal 2012 was $17.2 million, which included $3.3 million of flood-related income from insurance advances, net of additional write-offs and expenses, due to the flooding in Thailand, compared with a net loss of $30.8 million in the second quarter of fiscal 2012, which included $9.1 million of flood-related write-offs and expenses. Net loss was $9.8 million in Q3 FY 2011.
Cash, cash equivalents and restricted cash were $51.1 million as of March 31, 2012, compared with $54.2 million at the end of December. The balance at March 31, 2012 included an additional $6 million drawn in the quarter under the Company's $45 million credit facility, for a total outstanding balance of $25.5 million drawn at March 31, 2012.
"This quarter demonstrates our continued progress across all of our strategic initiatives and in our Thailand flood recovery, which is largely behind us," says Alain Couder, chairman and CEO of Oclaro. "We successfully announced our relationship with Venture and will transition to an outsourced back-end assembly and test model over the next three years. We announced plans to merge with Opnext, which will put us in the #2 position in optical components and modules market. Despite lower-than-forecasted revenues resulting from a short-term work stoppage in our China factory, progress with our cost-reduction and margin improvement initiatives enabled Oclaro to achieve gross margin and Adjusted EBITDA within the guidance ranges we provided on January 26, 2012."
Oclaro expects revenues in the range of $100 million to $109 million for the fourth quarter of fiscal 2012, which ends June 30, 2012.
This guidance is based on current expectations, including the impact of Oclaro's operations and financial conditions attributable to the flooding in Thailand. In addition, the foregoing guidance is based on Oclaro's performance as a standalone company and does not include any of the operating results of Opnext.
Conference Call
Oclaro held a conference call to discuss financial results for the third quarter of fiscal 2012. A replay of the conference call will be available up May 3, 2012. To access the replay, dial (858) 384-5517. The passcode for the replay is 4531987.
