& cplSiteName &

Bit Parts: Investors Hound Oplink

Dan O'Shea
8/15/2014
50%
50%

The optical components sector always seems to have more than its share of corporate and financial drama. Here's an update on a few recent happenings.

  • Oplink Communications Inc. (Nasdaq: OPLK)'s corporate governors continue to face pressure from activist shareholders desiring board representation and a sale of the optical components firm's non-core Oplink Connected business. The latest salvo from those investors -- Engaged Capital and Voce Capital Management, who have now dubbed themselves Oplink Shareholders for Change (OSC) -- is a statement calling on Oplink's board to "suspend its strategic decision-making process until the reconstitution of the Board at the upcoming annual meeting of shareholders."

    Why would investors seeking change want the current board to sit on its hands? Because Oplink already has indicated it is planning to add members to its board, and the OSC participants also have nominated their own choices for new board membership. OSC doesn't want the current Oplink board making a decision about Oplink Connected business that it wouldn't support. Oplink currently is reviewing strategic alternatives for the unit, including a sale, but also a shutdown, and already has moved to classify the business as discontinued operations. (See Oplink Answers Activist Investors.)

  • Alliance Fiber Optic Products Inc. (Nasdaq: AFOP) recently reported a 27% jump in revenue for the second quarter, compared to the same quarter a year before. But critics -- exemplified by this Seeking Alpha post -- have been concerned that the company is too reliant on its biggest customer, believed to be Google, which has been responsible for as much as 35% of the company’s revenue. The poster also calls into question company officials’ lack of candor regarding executive compensation and insider selling.

  • Oclaro Inc. (Nasdaq: OCLR) just reported its own unit sale, saying it sold its industrial and consumer product businesses in Japan to a Japanese semiconductor company for roughly $18.5 million in cash. The company also reported a net loss for the fiscal fourth quarter of $24 million, compared with a net loss of $22.9 million the year-ago period. That news comes not long after Oclaro impressed the sector with the hiring of former Cisco Systems Inc. (Nasdaq: CSCO) executive Adam Carter. (See Get Carter: Oclaro Did, From Cisco)

— Dan O'Shea, Managing Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Featured Video
From The Founder
The world of virtualization is struggling to wrench itself away from the claws of vendor lock-in, which runs counter to everything that NFV stands for.
Flash Poll
Upcoming Live Events
March 20-22, 2018, Denver Marriott Tech Center
March 22, 2018, Denver, Colorado | Denver Marriott Tech Center
March 28, 2018, Kansas City Convention Center
April 4, 2018, The Westin Dallas Downtown, Dallas
April 9, 2018, Las Vegas Convention Center
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Has Europe Switched to a Fiber Diet? Not Yet...
Ray Le Maistre, Editor-in-Chief, 2/15/2018
Will China React to Latest US Huawei, ZTE Slapdown?
Ray Le Maistre, Editor-in-Chief, 2/16/2018
IBM, Microsoft Duke It Out Over Chief Diversity Hire
Sarah Thomas, Director, Women in Comms, 2/15/2018
5G: The Density Question
Dan Jones, Mobile Editor, 2/15/2018
T-Mobile Injects AI Into Customer Service
Kelsey Kusterer Ziser, Editor, 2/16/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed