Optical components

Oplink Perks Up

4:30 PM -- I'm on earnings-call overload, but I'd be remiss if I didn't mention that Oplink Communications Inc. (Nasdaq: OPLK) shares are up 16 percent, at $10.50, after last night's earnings report. (See Oplink reports Q3.)

Revenues of $30.8 million were down about 25 percent from a year earlier -- about what analysts expected. But where analysts predicted a breakeven third quarter, Oplink came in with non-GAAP profits of 10 cents per share. Kablam!

The savings come from a cost-cutting binge. Cribbing from Needham & Co. analyst John Harmon's report, Oplink has cut 400 employees since last quarter and is moving the acquired OCP business into Oplink facilities.

Oplink expects revenues for its fourth quarter, ending in June, to be about the same as its third-quarter revenues of $30.8 million.

Harmon also notes that Oplink's "strong balance sheet and about $7.50 per share in cash" puts it in a good position to acquire companies -- although there aren't any obvious targets.

— Craig Matsumoto, West Coast Editor, Light Reading

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