Acacia expecting normal Q3 operations with ZTE back
Photo | File
The Maynard headquarters of EmpiraMed, Inc. are located at Mill & Main.
Shares of Maynard maker of optical networking technology Acacia Communications have jumped nearly 20 percent since last week when it said the business will get back on track in the third quarter with its largest customer allowed back into U.S. commerce.
The company’s second-quarter revenue of $65 million was a 18 percent year-over-year decrease, and it lost $3.2 million in the quarter after profiting $4.6 million in second quarter 2017.
For the year, the company is losing $12.3 million, a drastic change from this point last year, when the company was profiting nearly $40.4 million.
Also down is its six-month revenue, which is about $138 million as of June 30, down significantly from $193.6 million at that point in 2017.
The reason for the decline in business was the U.S. Department of Commerce’s ban on Chinese smartphone maker ZTE, which was Acacia’s largest customer.
The ban was lifted after ZTE paid a hefty $1.4-billion settlement and revamped its leadership last month.
When the company was sanctioned for allegedly selling equipment to Iran and North Korea in April, Acacia’s stock plunged from more than $40 per share to below $27.
At Thursday’s open, the company’s stock was priced at $38.06.
With ZTE and Acacia resuming their business, the company’s third quarter results are expected to be much stronger with revenue between $86 million and $94 million, Acacia said.
That would include about $14 million of forecasted revenue attributed to the company’s slow restart of business with ZTE.
For shareholders, that’s a welcome reprieve after a quarter of losing $0.08 per share. The non-GAAP guidance has share earnings between $0.10 and $0.22 for the third quarter.
WBJ Web Partners
Most Recent
Most Recent
0 Comments