U.S., China nearing deal to bring back Maynard firm's largest customer
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The Maynard headquarters of Acacia Communications at Mill & Main.
According to a report from Reuters, the Trump Administration is nearing a deal to lift a ban on a Chinese telecommunication giant and the largest customer of Maynard-based Acacia Communications.
Reuters reported the news Tuesday as China agreed to cut tariffs on car imports, about a week after President Donald Trump tweeted he and Chinese President Xi Jinping were working out a deal to allow ZTE Corp. to do business in the U.S. once again.
ZTE was sanctioned in April, hit with a seven-year ban on exporting American products after the U.S. Department of Commerce determined the company failed to live up to a March 2017 agreement.
Acacia Communications has called ZTE its largest customer. According to an Acacia investor presentation, ZTE accounted for more than 30 percent of Acacia’s total 2017 revenue, and more than 20 percent in this year’s first quarter.
Earlier this month, Acacia said it's scaling back its second-quarter revenue projections due to the sanctions, expecting a $7 million to $13 million dip from its first-quarter numbers.
Acacia’s stock opened $6 higher after a May 13 tweet from Trump saying the ban was close to being lifted, and shares of the company’s stock rebounded slightly again Tuesday, opening at $34.70 after closing Monday at $33.46.
When news of the ban broke last month, the company’s stock nosedived from about $40 per share to $25.51.
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