-----Acacia (ACIA) reported earnings on Thur 1 Nov 18 (a/h)

• Acacia competes with Finisar (FNSR), Lumentum Holdings (LITE) and others.
• Acquired by Cisco Systems (CSCO) for $4.5 billion. (Jan 2021)

 

Acacia Communications (ACIA) late Thursday reported lower third-quarter revenue and profit from a year earlier, but results beat analyst estimates. Acacia stock surged in after-hours trading as December-quarter guidance topped expectations.

The maker of optical communications devices said adjusted third-quarter earnings were 42 cents a share, down 9% from a year ago, as revenue fell 10% to $94.8 million, topping forecasts. A year earlier, Acacia earnings were 46 cents a share on sales of $345.8 million.

Analysts expected Acacia to report earnings of 17 cents on sales of $90 million for the period ended Sept 30.

In the December quarter, Acacia forecast revenue of $102 million at its midpoint of guidance and profit of 35 cents per share. Analysts had projected $99.7 million and profit of 31 cents.

Acacia Stock Swooned After Hot IPO
Shares in the maker of optical devices for telecom networks and data centers jumped 8.3% to 39.50 in after-hours trading on the stock market today.

Acacia stock was down 15% from a year ago as of Thursday's market close.

Acacia went public on May 13, 2016, pricing shares at 23 and raising $119 million. Shares reached a high of 128.73 on Sept. 7 of that year.

Acacia stock swooned after the fiber-optic-parts maker's biggest customer, Chinese telecom gear firm ZTE, ran into trouble.

Acacia May Get Boost From 400G Upgrades
Some analysts say Acacia sales could rebound as customers upgrade to 400-gigabit-per-second communications gear from 100-Gbps products.

Maynard, Mass.-based Acacia makes digital signal processors and photonic integrated circuits. The two products are combined in modules that plug into 100-gigabit-per-second or 400-GB network equipment.

====Acacia Communications (ACIA) : President Trump indicates openness to working with Chinese telco hardware maker ZTE

Acacia Communications leading optical stocks higher after President Trump indicated openness to working with Chinese telco hardware maker ZTE; NXP (NXPI) surges on better outlook for Chinese approval of acquisition by Qualcomm 

• Optical stocks higher premarket after President Trump indicated openness to resolving issues Chinese telco hardware maker ZTE.
• On April 16, the group fell after the US outlawed doing business with Chinese telco equipment firm ZTE.
• ACIA(ZTE accounted for 30% of revenue in 2017) +18.08% OCLR+7.35% IPHI+5.99%LITE+5.47% NPTN+4.81% FNSR+4.48% FN+4.20% AAOI+2.99% MTSI+2.81% VIAV+1.94% ADTN+0.33% IIVI 
• On a related note, easing economic tensions between China and the US seems to indicate better odds that Qualcomm (QCOM+2.5%) will get approval to acquire NXP Semi (NXPI+10%)

=Acacia (ACIA) : U.S. bans component sales to China's ZTE

Shares in optical device makers plunged Monday after the U.S. Commerce Department banned domestic firms from selling components to Chinese telecom gear maker ZTE following a probe into illegally shipped equipment to Iran and North Korea.
"ZTE made false statements to the U.S. government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation," Secretary of Commerce Wilbur Ross said in a statement.

• NeoPhotonics, Oclaro, Acacia, Lumentum, and Finisar sell the most optical components to China, says a UBS report.

Shares of Acacia Communications Inc. ACIA, -33.37% plunged 23% in Monday morning trading after the U.S. banned American companies from selling components to China-based ZTE Corp. ZTE pleaded guilty to conspiring to violate U.S. sanctions by shipping goods to Iran, according to Reuters, which reported on the ban this morning. ZTE accounted for 30% of Acacia's revenue in 2017, according to the company's most recent annual filing.

• Leading optical stocks lower : ACIA -18.84% LITE -9.02% IPHI -10.35% OCLR -6.58% AAOI -5.37% FNSR -4.91% NPTN -3.09% FN -2.75% COHR -0.94% IIVI -0.69% CIEN -0.43%

Acacia Communications (ACIA) reported earnings on Thur 22 Feb 18 (a/h)

**  before earnings **

** charts after earnings **

 

Acacia Communications beats by $0.03, misses on revs; guides Q1 EPS below consensus, revs below consensus 

• Reports Q4 (Dec) earnings of $0.27 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.24; revenues fell 39.2% year/year to $86.60 mln vs the $88.41 mln Capital IQ Consensus.
• Co issues downside guidance for Q1, sees EPS of $0.01-0.10, excluding non-recurring items, vs. $0.28 Capital IQ Consensus Estimate; sees Q1 revs of $67-74 mln vs. $93.21 mln Capital IQ Consensus Estimate.
• "While we continue to face some headwinds in the market, our fourth quarter 2017 results were in-line with our expectations,...Our team at Acacia continued to execute well on new product introductions and on our ongoing customer diversification efforts. We are pleased with our product roadmap and believe we are well positioned to take advantage of market opportunities as conditions improve."
• "While we are projecting first quarter 2018 revenue to be down sequentially, like others in our industry, we see signs of improving market conditions in 2018, although we continue to remain cautious." 

This week's biggest % winners & losers : Feb 20 - 24, 17 (wk 8)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare:LNTH (12.73 +34.66%),CYH (9.22 +33.62%),AXDX (26.6 +14.9%),THC (21.99 +13.53%),SRPT (31.95 +12.98%)
• Materials:TROX (17.4 +20.67%)
• Industrials:GNK (11.36 +15.1%),SBLK (9.5 +15.01%),FIX (38.65 +14.86%)
• Consumer Discretionary:PLKI (79.02 +19.51%),RH (31.34 +16.85%),TV (26.44 +14.41%),LL (17.39 +13.22%),GNC (8.63 +12.96%)
• Information Technology:KEM (11 +36.48%),AAOI (46.22 +24.01%),SQ (17.43 +20.46%),UCTT (14.66 +20.26%),CNDT (16.97 +12.98%),OLED (81.5 +12.96%)

This week's top 20 % losers

• Healthcare:TRVN (4 -43.9%),MNTA (15.5 -18.42%),AMRI (15.21 -18.27%),AMPH (15.19 -17.45%),BCRX (5.51 -16.01%)
• Materials:NAK (1.55 -31.42%),HCLP (17.35 -18.54%)
• Industrials:GRAM (3.32 -35.03%)
• Consumer Discretionary:ENT (4.31 -30.71%)
• Information Technology:SREV (4.01 -31.22%),ACIA (54.03 -18.86%),OCLR (9.23 -16.29%)
• Financials:OCN (4.24 -19.08%)
• Energy:BPT (21.3 -27.92%),FMSA (9.93 -17.59%),PKD (1.95 -17.02%),QEP (14.05 -16.72%),AROC (13.35 -15.51%),SWN (7.35 -15.32%)