Oclaro reported financial results for its third quarter of fiscal year 2017, ended April 1, 2017, as follows:
1. Revenue for the third quarter of $162.18 million, up 5.4% compared with $153.91 million for the second quarter and up 60.5% from $101.05 million for the third quarter of fiscal 2016.
2. Gross income for the second quarter of $66.79 million, up 10.0% compared with $60.74 million for the second quarter and up 147.9% from $26.94 million for the third quarter of fiscal 2016.
3. R&D expenditure for the third quarter of $14.48 million, up 5.2% compared with $13.76 million for the first quarter and up 27.2% from $11.38 million for the third quarter of fiscal 2016.
4. SG&A expenditure for the third quarter of $14.74 million, up 10.4% compared with $13.35 million for the second quarter and up 12.9% from $13.05 million for the third quarter of fiscal 2016.
5. Total operating expenditure for the third quarter of $29.05 million, up 6.2% compared with $27.36 million for the first quarter and up 18.7% from $24.48 million for the third quarter of fiscal 2016.
6. On a GAAP basis, a net income for the third quarter of $38.21 million, compared with a net income of $30.27 million for the second quarter and a net income of $89,000 million for the third quarter of fiscal 2016.
On a non-GAAP basis, a net income for the third quarter of $39.89 million, compared with a net income of $36.29 million for the second quarter and a net income of $3.32 million for the third quarter of fiscal 2016.
7. Cash, cash equivalents and restricted cash as of April 1, 2017 of $214.78 million, compared with $223.51 million as at December 31, 2016 and $96.64 million as at July 2, 2016.
Additional results and notes
Oclaro noted that for the third quarter 100 Gbit/s and above revenue reached $125.8 million, driven by line side and client-side products, and up 11% sequentially and up 115% year on year. For 40 Gbit/s and lower speeds, revenue decreased by $4 million, or 9%, to $36.4 million.
For the third quarter, datacom, or client-side, sales increased by 9% sequentially, driven by QSFP28 products, which continued to grow, while telecom, or line side, sales grew 3% sequentially as metro and data centre interconnect sales continued to grow.
During the quarter, Oclaro noted that 10%-plus customers represented 59% of total sales, compared to 68% in the second quarter, with the same top four customers contributing 18%, 17%, 12% and 12% of sales in the third quarter.
Reported by region, in the third quarter China accounted for 36% of total sales, down sequentially from 42%; the Americas 28%, up from 21% in the prior quarter; Southeast Asia 22%; and EMEA 12% of total sales.
Outlook
For the fourth quarter Oclaro expects revenue of between $144 and $152 million, representing a sequential decrease of 8.7% at the midpoint.
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