-----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 (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%

JDS Uniphase (JDSU) Post-Bubble Plunge Leads to Split

 JDS Uniphase Corp.’s plan to break in two is designed to lift the value of a company that never recovered from the bursting of a 1990s bubble in Internet-related stocks.

 

The producer of fiber-optic components and networking equipment began as Uniphase Corp. and changed its name after buying JDS Fitel Inc. for $7.05 billion of stock in July 1999.

 

stock performance of JDS Uniphase since its initial public offering in November 1993.

Shares of JDS Uniphase jumped more than 600-fold from the IPO price through March 2000, when they peaked with the Nasdaq Composite Index, and plunged during the subsequent bear market. Although the Nasdaq closed yesterday within 10 percent of its record, the comparable gap for the Milpitas, California-based company’s stock was 99 percent.

Splitting the optical and networking units into separate, publicly traded companies, which JDS Uniphase proposed two days ago, may do relatively little to narrow the stock’s differential if analyst projections are any guide.

JDS Uniphase has “long-term potential” to reach $40 a share, Mark Sue, an analyst at RBC Capital Markets, wrote in a report yesterday. Sue increased his 12-month price estimate for the stock by 64 percent to $18, the highest among 14 analysts in a Bloomberg survey. The New York-based analyst also lifted his rating to the equivalent of buy from hold.

Even if JDS Uniphase advances to $40, the shares would be 97 percent below their peak. They changed hands for as much as $1,227.375 after adjusting for a 1-for-8 reverse stock split, completed in October 2006.