MARKUS WEBER INTEROPERABILITY
deployment of products to support the needs of their customers. For instance, if the industry adopts coherent interoperability standards, then service providers will be able to procure new product at lower costs.
When standards are established it increases the reuse of standardised components, enables consolidation of developments, increases production volumes per component, and reduces the amount of time to market when developing new products. For service providers it lowers costs and simplifies and accelerates the selection and
optical transmission restricts market growth. Often many parallel developments target the same application, fracturing the market into many small segments. Over time the industry will demand lower cost solutions and fuel the need to adopt industry standards for optical solutions including coherent interoperability solutions.
CONCLUSION The current lack of standardisation for
Acacia reports its Q3 2017 results
in the second quarter as a result of the previously announced quality issue.”
In November, Acacia Communications reported financial results for its third quarter that ended September 30, 2017. “We are pleased with our third quarter execution and results, in a market that is still facing some headwinds, particularly in China,” said Raj Shanmugaraj, President and CEO. “Sales to our newer customer group, outside our original eight customers, accounted for 31% of our total revenues in the third quarter and, among the four customers that each contributed greater than 10% of our revenues this quarter, was the direct hyper-scale customer that had been a 10% total revenue contributor in the fourth quarter of 2016. We are continuing to add new products to our strong portfolio of coherent optical interconnect solutions, such as our industry first CFP2-DCO and recently announced 1.2 Tbps AC1200 module.” “Third quarter revenue was in the upper end of our guidance range, and non-GAAP net income and non-GAAP diluted EPS came in above our guidance range,” said John Gavin, Chief Financial Officer of Acacia Communications. “These results were driven by a combination of continued global demand for our CFP and flex-400G products in the third quarter, as well as recovery of shipments that were delayed
RESULTS Q3 2017 l Revenue of $105.0 million, decreased 22% year-over-year l GAAP gross margin of 43.9%; non- l GAAP gross margin* of 43.7% l GAAP income from operations of $8.9 million; non-GAAP income from operations* of $14.6 million GAAP net income of $18.5 million; non-GAAP net income* of $19.1 million l EBITDA* of $12.1 million; adjusted EBITDA* of $17.8 million l GAAP diluted EPS of $0.44; non-GAAP diluted EPS* of $0.46 OUTLOOK FOR Q4 Acacia Communications’ guidance for its fourth quarter ending December 31, 2017 was as follows: Revenue of between $83 – $93 million; non-GAAP net income of $8 – $15 million; and non-GAAP diluted earnings per share of $0.19 – $0.36.
Markus Weber is Senior Director, Product Management, at Acacia Communications.
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ISSUE 11 | Q4 2017
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