Oclaro, Inc (Nasdaq: OCLR) Shares Propelled by Acquisition Rumors

Oclaro Inc., Nasdaq: OCLR

Shares of San Jose, CA-based Oclaro Inc. are higher on rumors of an acquisition by Finisar Corporation (Nasdaq: FNSR). Shares of Oclaro Inc. trade on the Nasdaq under ticker symbol OCLR.

Oclaro Inc. develops and provides products for fast optical networks and high-speed interconnects that are enabling the next wave of streaming video, cloud computing, voice over IP and other high-speed and bandwidth-intensive applications. Oclaro operates R&D and chip fabrication facilities in the U.S., U.K., Italy, and Japan; in-house and contract manufacturing sites in China, Malaysia, and Thailand; and design, sales, and service organizations in each of the major regions around the world.

Oclaro’s financials are impressive. From their November 1, 2016 press release:

Results for the First Quarter of Fiscal 2017

  • Revenues were $135.5 million for the first quarter of fiscal 2017, and compare with revenues of $125.2 million in the fourth quarter of fiscal 2016, which was a 14 week quarter, and revenues of $87.6 million in the first quarter of fiscal 2016.
  • GAAP gross margin was 34.2% for the first quarter of fiscal 2017, compared with GAAP gross margin of 32.1% in the fourth quarter of fiscal 2016, and a GAAP gross margin of 25.9% in the first quarter of fiscal 2016.
  • Adjusted EBITDA was $25.6 million for the first quarter of fiscal 2017, compared with Adjusted EBITDA of $19.2 million in the fourth quarter of fiscal 2016, and Adjusted EBITDA of $4.2 million in the first quarter of fiscal 2016.
  • Cash, cash equivalents, and restricted cash were $229.3 million at October 1, 2016.

Nine analysts have OCLR ranked as a “Strong Buy” and one has it rated as a “Buy”. Price target consensus for OCLR is $12 however rumors peg the takeover price at $13. Investors should be aware that all 2016 insider transactions were sales – no management acquired shares of OCLR in 2016.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Ticker Symbol OCLR
Last Price a/o 8:00 AM EST  $               9.40
Average Volume 5.19 million
Market Cap $1.43 Billion
Sales $456 million
Shares Outstanding 154.95 million
Share Float 154.95 million
Shortable Yes
Optionable Yes
Inside Ownership 2.90%
Short Float 8.38%
Short Interest Ratio 2.5
Quarterly Return 1.43%
YTD Return 165.23%
Year Return 166.76%