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Oclaro Inc Reports Operating Results (10-Q)

February 10, 2011 | About:
10qk

10qk

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Oclaro Inc (OCLR) filed Quarterly Report for the period ended 2011-01-01.

Oclaro Inc has a market cap of $662 million; its shares were traded at around $15.9 with and P/S ratio of 1.7. Hedge Fund Gurus that owns OCLR: Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns OCLR: RS Investment Management, RS Investment Management.

Highlight of Business Operations:

For the three months ended January 1, 2011, Huawei Technologies Co., Ltd. (Huawei) accounted for $20.9 million, or 17 percent, Ciena Corporation (Ciena) accounted for $14.7 million, or 12 percent, and Alcatel-Lucent accounted for $13.5 million, or 11 percent, of our revenues. For the three months ended January 2, 2010, Huawei accounted for $13.6 million, or 15 percent, of our revenues.

For the six months ended January 1, 2011, Huawei accounted for $39.1 million, or 16 percent, Alcatel-Lucent accounted for $29.5 million, or 12 percent, and Ciena accounted for $25.0 million, or 10 percent, of our revenues. For the six months ended January 2, 2010, Huawei accounted for $24.7 million, or 14 percent, of our revenues.

Our cost of revenues for the three months ended January 1, 2011 increased by $15.8 million, or 23 percent, compared to the three months ended January 2, 2010. The increase was primarily related to costs associated with increased product sales resulting from improved market conditions in calendar year 2010 and realizing the benefits of previous cost reduction efforts described more fully in Note 6, Restructuring Liabilities. Our cost of revenues were favorably impacted by approximately $0.5 million as a result of the U.K. pound sterling weakening relative to the U.S. dollar and unfavorably impacted by approximately $0.2 million as a result of the Swiss franc strengthening relative to the U.S. dollar.

Our cost of revenues for the six months ended January 1, 2011 increased by $39.2 million, or 30 percent, compared to the six months ended January 2, 2010. The increase was primarily related to costs associated with increased product sales resulting from improved market conditions in calendar year 2010 and realizing the benefits of previous cost reduction efforts. Our cost of revenues were favorably impacted by approximately $0.6 million as a result of the U.K. pound sterling weakening relative to the U.S. dollar and unfavorably impacted by approximately $0.3 million as a result of the Swiss franc strengthening relative to the U.S. dollar.

Research and development expenses increased by $6.0 million, or 62 percent, for the three months ended January 1, 2011, compared to the three months ended January 2, 2010. During the current quarter, we continued to increase our investment in research and development resources, primarily personnel-related, as we are investing to match the rate of our anticipated revenue growth. The increase was also due to our acquisition of Mintera in July 2010 and Xtellus in December 2009. The increase was offset in part by having an additional week of expenses during the three months ended January 2, 2010 compared to the three months ended January 1, 2011. Personnel-related costs increased to $8.8 million for the three months ended January 1, 2011, compared with $6.6 million for the three months ended January 2, 2010. Other costs, including the costs of design tools and facilities-related costs increased to $6.9 million for the three months ended January 1, 2011, compared with $3.1 million for the three months ended January 2, 2010. Research and development expenses were favorably impacted by approximately $0.4 million as a result of the U.K. pound sterling weakening relative to the U.S. dollar.

Research and development expenses increased by $10.7 million, or 57 percent, for the six months ended January 1, 2011, compared to the six months ended January 2, 2010. The increase was primarily due to increased investment in research and development resources, primarily personnel-related, as we are investing to match the rate of our anticipated revenue growth. The increase was also due to our acquisitions of Mintera and Xtellus. The increase was offset in part by having an additional week of expenses during the six months ended January 2, 2010 compared to the six months ended January 1, 2011. Personnel-related costs increased to $17.1 million for the six months ended January 1, 2011, compared with $12.4 million for the six months ended January 2, 2010. Other costs, including the costs of design tools and facilities-related costs increased to $12.3 million for the six months ended January 1, 2011, compared with $6.3 million for the six months ended January 2, 2010. Research and development expenses were favorably impacted by approximately $0.9 million as a result of the U.K. pound sterling weakening relative to the U.S. dollar.

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