When JDS Uniphase
Today, Oplink's own fourth-quarter report is in, and the stock has joined JDSU in a double-digit fall over the past two days. Year-over-year sales growth of 12% and flat earnings largely met Street estimates, but a dismal outlook for the coming quarter sank the ship.
Meeting the top end of management's first-quarter guidance would mean missing revenue estimates by 6% and earnings targets by 36%. And even those unreachable Street projections describe year-over-year shrinkage in the first place.
For an optical-components specialist with 23% annual growth over the past five years and a 30% long-term annual growth projection pegged on it by analysts, that just won't do. Yet Oplink CEO Joe Kiu keeps a stiff upper lip: "As we continue to introduce building blocks for ROADM and flexible networks, Oplink is well positioned to gain market share."
Just not anytime soon. Kiu admits that "visibility is limited" and not at all helped by the uncertain economy. "The telecom equipment market is in its early stage of another upgrading cycle to higher capacity," he says, pointing past direct-systems clients Huawei and Tellabs
And once again, Mr. Market is taking this message the wrong way. If business is slow for both JDSU and Oplink, then why did Finisar
Keep an eye on the optical networkers:
- Add Oplink Communications to My Watchlist.
- Add JDS Uniphase to My Watchlist.
- Add Finisar to My Watchlist.
- Add Tellabs to My Watchlist.