Oclaro announces reverse stock split, preliminary Q3 revenue at top end of guidance
APRIL 14, 2010 -- In another sign that the optical communications market is regaining its legs, components, modules and subsystems vendor Oclaro, Inc. (NASDAQ: OCLR; search Lighwave for Oclaro) says it will enact a 1-for-5 reverse split of its common stock. It added that preliminary financial results for its fiscal third quarter indicate the company will crest at approximately $101.2 million, near the $102 million that marked the high end of its guidance for the quarter.
The reverse stock split will be effective at 6:00 pm, Eastern Time, on April 29, 2010. Oclaro's common stock will begin trading on NASDAQ on a split adjusted basis when the market opens on April 30, 2010, under the temporary trading symbol "OCLRD." The trading symbol will revert to "OCLR" after approximately 20 trading days.
"By executing a reverse stock split we believe the higher share price will appeal to a broader universe of institutional investors," said Alain Couder, President and CEO of Oclaro, Inc. "We also believe a lower share count will better reflect the progress of our anticipated earnings improvements on a per-share basis."
The reverse split will reduce the number of shares of the Company's common stock outstanding from approximately 212 million to approximately 42 million. Proportional adjustments will be made to Oclaro's outstanding stock options and other equity incentive awards, and its equity compensation plans.
As for the preliminary fiscal third quarter revenue figures, "demand remains strong across all our businesses and we continue to see improving order trends,” said Couder. “Our revenue growth combined with crisp operational execution reinforces our confidence in achieving the 30 percent non-GAAP gross margin threshold in the June quarter.”
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