Oclaro and Fabrinet management are actively investigating alternative production locations and have enacted business continuity plans.
As a result, Oclaro immediately began to deploy its contingency planning to assess alternative manufacturing options.
The Sterne Agee analysts responded to the news by cutting ratings on Oclaro, JDSU and Opmext.
FORBES: Optical Stks Fall As Thai Floods Hit Key Supplier Fabrinet
However, Oclaro is still evaluating the broader supply chain implications of the flooding in Thailand across its entire manufacturing operations.
The firm likewise cut Opnext and Oclaro to To Hold from Buy on concerns related to the issues at Fabrinet.
FORBES: Optical Stks Fall As Thai Floods Hit Key Supplier Fabrinet
Shares of optical networking provider Oclaro are trading higher Wednesday afternoon after the company said Q4 revenues topped previous guidance.
FORBES: Oclaro Says Q4 Revs Topped Guidance Range; Shrs Jump
Oclaro shares are down sharply, after the optical networking component provider reported disappointing financial performance for its fiscal Q3 ended April 2.
Oclaro added that due to ongoing assessment of flood damage and recovery plans, the company is postponing the announcement of FY Q1 financial results.
Middle-market firm Oclaro was formed by a merger between competitors, and has recently merged again with Opnext, looking for a better balance between supply and demand.
Producers of optical telecom infrastructure gear are losing ground Monday morning after Oclaro on Friday afternoon warned that results for its fiscal first quarter ended September 29 will come in short of expectations.
FORBES: Telecom Gear: Oclaro Warns, Knocking Down Optical Stocks
As I noted yesterday, Oclaro (OCLR) after the close on Tuesday issued an earnings warning, news that followed similarly downbeat reports from Ciena (CIEN), Finisar (FNSR) and EXFO (EXFO).
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