Opnext Inc. (Nasdaq: OPXT) now says it expects "material" loss of revenue through March due to the floods in Thailand.

The company updated its situation Wednesday, saying it's still working on finding alternatives to its top contract manufacturer, Thailand-based Fabrinet Co. Ltd. (NYSE:FN) Opnext's 10Gbit/s modules get tested at Fabrinet's Chokchai facility, which has been closed since Oct. 22 due to flooding and still doesn't have an estimated reactivation date. (See Opnext Assesses Flood Damage.)

Fabrinet has resumed production at its nearby Pinehurst campus, and it's moving some of Opnext's capacity over there, Opnext reported Wednesday. Opnext has also been moving production to two of its own facilities (in Japan and California) and to Chinese contract manufacturers.

But these changes take time. Opnext now says it expects to get to 20 percent of its previous 10Gbit/s module capacity by Dec. 31, with full capacity coming online early in the June quarter.

Opnext's share price was down $0.03 (2.8 percent) at $0.86 in after-hours trading Wednesday night.

Why this matters
Wednesday's announcement set a timeframe for Opnext's recovery and falls in line with the company's Nov. 1 statement that the flooding could cause problems for months. But the announcement didn't do much to quantify how much of a hit the company will take in its third and fourth quarters, which end in December and March.

For Opnext's third quarter, analysts were expecting revenues of about $66 million, compared with $97 million for the same quarter a year ago, according to Thomson Reuters .

For more
Here's what the industry heard about Fabrinet's situation in late October and early November.

— Craig Matsumoto, West Coast Editor, Light Reading