Oplink Communications F2Q08 (Qtr End 12/31/07) Earnings Call Transcript

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2008-02-08 08:29:27.0

Tags: Oplink Communications Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Christopher Longiaru - Sidoti.

Christopher Longiaru - Sidoti

Could we talk a little bit more about basically expecting a decrease in revenue here due to some ROADM weakness? Could you talk about that a little more specifically and how long you think that’s going to play out?

Joseph Y. Liu

You know obviously we saw two pressures from our customer. Primary pressure is from the recent announcement, of Fujitsu being qualified as an alternative supplier to Verizon. But more immediately, we know that one of our competitors, Optium, is also being qualified as an alternative supplier to the Tellab system.

So those are the two reasons that kind of are not new, but we anticipate that the revenues will, because of that, we will have impact. Now, obviously that impact could also come in from Tellabs business extended to vendors like us, but I am not here to comment on our customer’s business.

Christopher Longiaru - Sidoti

Could you give a tax rate and share count to take care of that stuff really quick for the next quarter?

Shirley Yin

Yes, tax rate will be ata similar level as the current quarter. Share counts, absolute shares atthe end of December are 20.6. So normally we have about 500 K to a million shares add back to the diluted shares. So I would estimate about 21.5.

Operator

Thanks. Our next question comes from John Harmon - Needham & Company.

John Harmon - Needham & Company

There areso many moving parts inthe quarter. Let mesee if you can help me nail down some of them. So if you go from your revenue level to kind of the midpoint of your guidance, what is the revenue decrease from lower ROADM revenues that you are expecting and then how much of that is from disruptions, operations, and product discontinuation?

Joseph Y. Liu

The ROADM revenue drop, I guess if we put a range that will probably bein the neighborhood of $4-6 million for the coming quarter. And regarding the OCP actual transfer incurred relating to the for customer re-qualification, I would say that is probably $2-4 million impact for the quarter.

John Harmon - Needham & Company

And you said you are not breaking apart Oplink cost, let’s say, from OCP results anymore. Could you maybe just for the one quarter give us some growth on operating margin guidance?

 

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