Oplink Communications, Inc. Q3 2008 Earnings Call Transcript

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2008-05-19 09:16:34.0

Tags: Oplink Communications Inc.

Question-and-Answer Session

Operator

(Operator instructions) And we'll take our first question from Michael Coady with B Reilly.

Michael CoadyB. Riley & Co.

Thanks, good afternoon.

Shirley Yin

Hi, Michael.

Joe Liu

Hi, Michael. How are you?

Michael CoadyB. Riley & Co.

Good thanks. How are you?

Joe Liu

Very good.

Michael CoadyB. Riley & Co.

Would you break out in greater detail the revenues from Huawei and Tellabs? And then, within Tellabs break it down further in terms of ROADM and non-ROADM?

Shirley Yin

Well, on a percentage on (inaudible) they both Tellabs and Huawei, they both were more than 10% for the current quarter. And normally we don't break out further in terms of specific percentage.

Michael CoadyB. Riley & Co.

Okay. You've typically given some idea of what the ROADM revenues were within the Tellabs mix over the last few quarters. Could you provide that detail?

Shirley Yin

Well, the ROADM revenue is about 24% of the consolidated revenue.

Michael CoadyB. Riley & Co.

Okay. And then looking forward, I know you have had some design wins with other Tallab products. Could you talk about the outlook for those, maybe what those were in the quarter? And then what the potential might be as you look out a couple of quarters?

Joe Liu

We don’t have clear visibility in terms of a couple of quarters out but however, we have been qualified in the amplification area, in the performance monitor area, circuit pack area. So, it's really up to – it's up for the customer to ramp the specific product.

Michael CoadyB. Riley & Co.

Okay. Fair enough. I’ll just ask one more question and then jump off or two more questions, quick ones. Joe, you said that you expect the fourth quarter to be at bottom in terms of revenue, and then for expansion thereafter. Given to what appears to be a limited visibility, I guess what gives you comfort in making that statement?

Joe Liu

Well, largely we are concerning with the OCP integration and the OCP will continue – we are shutting down the U.S. manufacturing, the last piece of the manufacturing only as of March 31. So, we are in transition to China. And that's challenging. Some of the OCP revenue may continue to be very stressed for the quarter. And then beyond that, I think the entire team is relaxed after the integration is completed. So, the specific OCP revenue will probably be the lowest in the June quarter and the Oplink business, I think the ROADM that we anticipate some further erosion in the quarter and level off from there. I would say probably level off at somewhere around $5 million per quarter.

 

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