Monday, August 6, 2018

Acacia is cautiously optimistic with recent lifting of ZTE ban

On August 2, Acacia Communications reported Q2 revenue of $65.0 million, a decrease of 18% year-over-year. The GAAP gross margin was 38.8%; and there was a GAAP net loss of $3.2 million. Non-GAAP net loss amounted to $3.2 million.

“During the second quarter, we stayed focused on execution, particularly around new product development and revenue diversification,” said Raj Shanmugaraj, President and Chief Executive Officer of Acacia Communications. “We are pleased with the ramp of our newer products and the revenue growth opportunities we are seeing in the second half of 2018 over the first half.  As we continue to execute on our strategic vision, we believe we are well positioned with our differentiated product portfolio to further diversify our customer and revenue base and benefit from growth in the overall coherent market.”

“Our second quarter results were in-line with our expectations, despite being negatively impacted by the imposition of the ZTE denial order in April,” said John Gavin, Chief Financial Officer of Acacia Communications. “As a result of our ongoing focus on operational efficiencies, we were able to further strengthen our balance sheet while continuing to fund our core strategic projects. Additionally, with the recent lifting of the ZTE ban, we are cautiously optimistic that our re-engagement with ZTE will become more ordinary course over the next few quarters.”