Oclaro warns of shortfall, sector falls in trading
Shares of several telecommunications suppliers fell Monday after Oclaro Inc. warned that revenue in its fiscal first quarter would fall short of expectations.
The companies make parts used in fiber optics networks.
Oclaro said late Friday that tough market conditions and lower customer demand for new products as well as some existing products has hampered its revenue. The company now expects revenue of about $149 million for the quarter that ended Sept. 29, which is below its previous guidance of $154 million to $168 million. It also fell short of the $162.2 million that analysts polled by FactSet had been expecting.
Its shares fell 25 cents, or 9.3 percent, to $2.38 in late afternoon trading.
Kevin Dennean of Citi Investment Research and several other analysts said that Oclaro's bad news seemed specific to the company, but shares of some competitors also fell Monday.
JDS Uniphase Corp.'s shares fell 46 cents, or 4 percent, to $10.91; Finisar Corp.'s shares fell 24 cents, or 1.8 percent, to $13.28; and Fabrinet's shares fell 61 cents, or 5.3 percent, to $10.99.
