What: Fiber optics and laser component manufacturer Oclaro (NASDAQ:OCLR) is having a good day, with shares up 10% as of 1 p.m. ET after the company reported better-than-expected fiscal second-quarter earnings.
So what: Revenue in the quarter added up to $94.1 million, which translated into adjusted net income of $3.1 million, or $0.03 per share. Investors were expecting the company to generate sales of $91.5 million and a net loss of $0.01 per share. Gross margin also expanded to 28.3%, driven by growth in 100G products.
Now what: CEO Greg Dougherty noted that it was the second consecutive quarter of 20% sales growth in 100G products, and demand remains "robust" amid "favorable market conditions." Oclaro continues to expand capacity in Asia in order to meet this demand. Guidance was also solid, with revenue in the current quarter expected in the range of $97 million to $103 million. Profitability should remain strong, with adjusted gross margin predicted to be 26% to 28%, and non-GAAP operating income should be $2 million to $6 million.