Oclaro, Inc. (NASDAQ:OCLR) will release its quarterly report on Monday, and investors have generally been downbeat about the tiny tech company’s future prospects. But with the company having recently announced a sale of a major piece of its overall business, Oclaro earnings could look a whole lot different looking forward.
Stats on Oclaro
Analyst EPS Estimate | ($0.36) |
Year-Ago EPS | ($0.21) |
Revenue Estimate | $137.5 million |
Change From Year-Ago Revenue | 32% |
Earnings Beats in Past 4 Quarters | 0 |
Source: Yahoo! Finance.
Will Oclaro earnings look clearer this quarter?
Analysts have had mixed views on Oclaro, Inc. (NASDAQ:OCLR) earnings in recent months, narrowing their loss estimates for the June quarter by $0.01 per share, but widening their loss projections for the 2014 fiscal year by $0.05 per share. Until yesterday, the stock had been stuck in neutral, with shares remaining roughly flat since early June before yesterday’s big jump.
Oclaro, Inc. (NASDAQ:OCLR)’s past results have shown the struggles it has faced in a difficult telecommunications industry environment. The company’s March-quarter results came in at the low end of its previous guidance, with sales, gross margins, and operating losses all deteriorating sequentially from the previous quarter. The fact that Oclaro highlighted its success in obtaining short-term bridge financing of $25 million shows just how critical the state of its finances are right now.
But the big news that will greatly affect Oclaro, Inc. (NASDAQ:OCLR)’s future came earlier this week, when Oclaro announced it had sold its semiconductor laser business for $115 million to II-VI, Inc. (NASDAQ:IIVI), consisting of $92 million in cash immediately, as well as $15 million in accounts receivable, and $8 million in conditional payments. In addition, II-VI, Inc. (NASDAQ:IIVI) paid $5 million for the exclusive rights to buy Oclaro’s optical amplifier and micro-optics division, which could potentially bring in another $88 million if II-VI, Inc. (NASDAQ:IIVI) exercises its option.