Here’s What’s Wrong with Oclaro

Oclaro, Inc. (NASDAQ:OCLR) Friday announced preliminary revenues for its just-ended fiscal first quarter that were troublingly lower than expected.

The optical components provider reported Q1 revenues of $149 million, compared to the $154 million that marked the low end of its guidance issued back on July 31.

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The company has cited a number of reasons for the lower-than-expected revenues, including: weak market conditions, a slower-than-anticipated recovery of shares due to Thai flooding and a slow ramp of new products.

Also, this fiscal quarter was Oclaro’s first since acquiring Opnext on July 23 and investors must question whether the deal is encouraging customers to diversify.

Fiber industry competitors like JDS Uniphase (NASDAQ:JDSU) and Finisar (NASDAQ:FNSR) could potentially see their stock prices take a hit alongside Oclaro’s.

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