Oclaro reported financial results for its fourth quarter and fiscal year 2017, ended July 1, 2017, as follows:
1. Revenue for the fourth quarter of $149.38 million, down 7.9% compared with $162.18 million for the third quarter and up 19.3% from $125.18 million for the fourth quarter of fiscal 2016.
2. Gross income for the fourth quarter of $61.33 million, down 8.2% compared with $66.79 million for the third quarter and up 52.6% from $40.18 million for the fourth quarter of fiscal 2016.
3. R&D expenditure for the fourth quarter of $15.75 million, up 8.8% compared with $14.48 million for the third quarter and up 24.3% from $12.67 million for the fourth quarter of fiscal 2016.
4. SG&A expenditure for the fourth quarter of $15.58 million, up 5.7% compared with $14.74 million for the third quarter and up 8.2% from $14.40 million for the fourth quarter of fiscal 2016.
5. Total operating expenditure for the fourth quarter of $31.44 million, up 8.2% compared with $29.05 million for the third quarter and up 14.9% from $27.37 million for the fourth quarter of fiscal 2016.
6. On a GAAP basis, a net income for the fourth quarter of $56.03 million, compared with a net income of $38.21 million for the third quarter and a net income of $11.84 million for the fourth quarter of fiscal 2016.
On a non-GAAP basis, a net income for the fourth quarter of $33.93 million, compared with a net income of $39.89 million for the third quarter and a net income of $14.41 million for the fourth quarter of fiscal 2016.
7. Cash, cash equivalents and restricted cash as of July 1, 2017 $219.99 million, versus $214.78 million as at April 1, 2017 and $96.64 million as at July 2, 2016.
Additional results and notes
For the full year 2017 Oclaro reported revenue of $600.97 million, compared with $407.91 million in 2016, and a net income of $127.86 million, versus net income of $8.58 million for the prior year.
Oclaro stated that, as expected, QSFP28 sales in the fourth quarter doubled sequentially, while QSFP28 and ACO products accounted for over 40% of total sales, with demand expected to be strong in fiscal year 2018 driven by growth in the metro and data centre markets. 100 Gbit/s and beyond sales were $121 million in the fourth quarter and represented 81% of total sales. Sales of client-side CFP products declined by 25% and 40 Gbit/s and below product sales decreased by over 20%.
In the fourth quarter, Oclaro's top four customers represented 55% of total revenue, versus 68% in the second quarter. The top four customers contributed 17%, 13% and 12% of sales.. For fiscal year 2017 the top customers were Cisco with 18%, ZTE 18%, Huawei with 15% and Nokia 12%.
Oclaro also announced the appointment of Ian Small, most recently chief data officer at Telefónica, to its board of directors, effective September 1, 2017. On July 27th, Oclaro increased the size of the board from seven to eight members.
Outlook
For the first quarter, Oclaro expects revenue of between $151 and $159 million, representing a sequential increase of 3.8% at the midpoint.
