Acacia Communications shares up 17% with largest customer back in U.S.
Photo | File
The Maynard headquarters of Acacia Communications at Mill & Main.
Maynard telecommunications equipment manufacturer Acacia Communications was trading up more than 17 percent Friday after its third-quarter earnings beat estimates.
Much of the success in the quarter and the bullish start to Friday trading is due to the reinstatement to U.S. commerce of Chinese smartphone maker ZTE.
The company, Acacia’s largest customer, was banned from doing business in the U.S. in April, but allowed back in June after agreeing to a $1.4-billion settlement for violating U.S. trade rules for shipping equipment to Iran and North Korea.
Acacia’s third-quarter revenue was $94.8 million, up significantly from the $65 million in the second quarter and even surpassed the company’s $94-million expectation.
Now, the company is expecting fourth-quarter revenue of at least $98 million up to $106 million.
For the quarter, the company’s profit was $8.1 million, a year-over-year decrease from the $18.5 million last year.
The company is also losing almost $4.2 million for the year, but company executives say Acacia is back on track.
“Moreover, we are pleased to reinstate our long-term financial targets which are unchanged from the targets we had in place prior to the ZTE ban,” CFO John Gavin said in a press release Thursday.
President and CEO Raj Shanmugaraj in the earnings release said newer customers contributed 43 percent of the total revenue for the quarter.
WBJ Web Partners
Most Recent
Most Recent
0 Comments