II-VI, Inc. (IIVI), Alcatel Lucent SA (ADR) (ALU): This Big News Could Move Oclaro, Inc. (OCLR) Earnings

Those strategic moves are part of Oclaro’s longer-range plan to refocus on its telecommunications business, matching well with its acquisition of Opnext last year. But for that strategy to work, the company needs to see stronger conditions in the network-communications market. For years, Oclaro customers Alcatel Lucent SA (ADR) (NYSE:ALU) and Infinera Corp. (NASDAQ:INFN) have faced challenges in getting major telecom providers to commit to major equipment purchases. But recently, conditions have started to improve, as major M&A moves among major U.S. carriers make it more likely that Alcatel Lucent SA (ADR) (NYSE:ALU) and Infinera Corp. (NASDAQ:INFN) will get bigger orders in the near future. Sharp gains from fellow optical-networking component supplier Finisar Corporation (NASDAQ:FNSR) have been a positive sign that major players in telecom are starting to spend again.

In the Oclaro earnings report, watch for further discussion of the II-VI, Inc. (NASDAQ:IIVI) sale, and how management will position the company going forward. With a massive infusion of cash, Oclaro, Inc. (NASDAQ:OCLR) is at a crossroads, and needs to execute well in order to take full advantage of the key opportunity it has right now.

The article This Big News Could Move Oclaro Earnings originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends II-VI and Infinera. The Motley Fool owns shares of Infinera.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.