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Optical components

Oclaro Makes Changes at the Top

Oclaro Inc. has changed CEOs, announcing Friday morning that it's swapped out Alain Couder in favor of board member Greg Dougherty. In addition, the company has appointed board member Marissa Peterson as chairwoman. Oclaro's stock was up 12 cents (11.7 percent) at $1.15 late Friday. Why this matters
Oclaro disappointed investors in May with a weak third quarter (non-GAAP losses of 37 cents per share, compared with expectations of 33 cents according to Thomson Reuters). The company also forecast fourth-quarter revenues of $132 million to $144 million; Wall Street had expected more like $157 million, analyst Simon Leopold of Raymond James Financial Inc. noted in a May 8 report. Leopold doesn't consider Oclaro an acquisition candidate for competitors Finisar Corp. or JDS Uniphase Corp. "given the complexity of Oclaro's operations after numerous of acquisitions." Keep in mind Oclaro is the merger of Avanex and Bookham, each of which had amassed a few acquisitions on their own. What stings is that the optical business is on the upswing -- at least, parts of it are. Ciena Corp. cashed in on deployment of 100Gbit/s to report a surprisingly good second quarter Thursday, adding that a strong third quarter is underway. That's a good sign for other optical components companies, including Finisar, JDSU and NeoPhonetics, as analyst Alex Henderson of Needham & Co. wrote in his Ciena earnings report. For more — Craig Matsumoto, Managing Editor, Light Reading
meter 6/11/2013 | 5:28:20 PM
re: Oclaro Makes Changes at the Top "Oclaro is amerger of Avanex and Bookham, each of which had amassed a few acquisitions on their own". I wonder if one of their acquisitions may have been ...hmm .. let me see, Opnext?
Balet 6/10/2013 | 11:02:28 PM
re: Oclaro Makes Changes at the Top Good luck to Alan.
IMHO, Oclaro needs to cut a lot of fat in UK and US from its huge management, procurement and PLM organizations. They can do the same business without 30% or so of people pretending to be needed.

Also, Oclaro is too much focused on cheap Asian sub-components and assemblies, while ignoring higher quality western sources. It hurts them with quality and delivery problems. Also, Oclaro needs to look a head a bit better with marketing approach. Last, but not least, Oclaro's sales organization might need some re-shaping.

JDSU fiber optics component business suffers from very similar problems. Finisar is a bit leaner and smarter, IMO.
Good luck to Oclaro!

P.S. Craig, NeoPhonetics sounds like a great new company:)
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