SAN JOSE, Calif. (AP) — Oclaro Inc. has plans to sell two of its business lines for $27 million total, the optical communications company said Monday.
The company said it will sell its Santa Rosa thin film filter business to Photop Technologies Inc., which is a subsidiary of II-VI Inc. The company will also sell its interleaver product line, which sells fiber-optic devices, to Photop Koncent Inc., another II-VI subsidiary.
Oclaro said the deals are part of its broader strategy to focus on its core business. The company plans to use the proceeds to improve its balance sheet and give it some operating flexibility.
The company said the $27 million cash deal will be paid in portions — $23 million upon closing, $3 million by Dec. 28 and $1 million in escrow until Dec. 31.
Oclaro said selling these product lines will reduce its revenue for the fiscal quarter ending in December by $2 million from what the company had forecast. Analysts expect the company to post quarterly revenue of $155.7 million, according to a survey by FactSet.
Shares of San Jose, Calif.-based Oclaro fell 4 cents to $1.62 in midday trading. II-VI Inc.'s shares increased 8 cents to $16.09.