Oclaro suspends dealings with ZTE

Due to US Government’s export ban; despite this, Optical communications solutions announces improved Q3 2018 results. Optical communications solutions developer Oclaro has announced its financial results for the third quarter of its fiscal 2018 trading, which ended March 31, 2018. Optical communications solutions did not hold an earnings call, nor provide further guidance for the fourth quarter, due to the ongoing acquisition of Oclaro by Lumentum. But besides the latest quarter’s trading figures themselves, of which more follows below, an eye-catching detail in the statement concerns a US Government-imposed block on exports to one of Oclaro’s largest customers ZTE, the Chinese telecoms giant.

Greg Dougherty, CEO, commented, “As a result of the U.S. Department of Commerce recently re-imposing export sanctions on ZTE, we have temporarily suspended all shipments to, and activities with, ZTE.“

In Oclaro’s 2017 “10-K” SEC filing, which details key customers and their contributions to overall sales, it was reported that for the fiscal year that ended July 1, 2017, ZTE then accounted for 18 percent of the $601 million total – the same figure as other lead customer Cisco; Huawei accounted for 15 percent and Nokia/Alcatel-Lucent 12 percent.

And in the Q3 2018 “10-Q” SEC filing, it was stated that the quarter’s “write-down of inventories designated to be sold to ZTE” totaled $3.08 million.

To read more: http://optics.org/news/9/5/5

Source: http://optics.org/