The Board of Oclaro has approved a one-for-five reverse split:
Oclaro Announces Reverse Stock Split; Announces Preliminary Revenues for Third Quarter Fiscal 2010
Press Release Source: Oclaro, Inc. On Wednesday April 14, 2010, 6:45 pm EDT
SAN JOSE, Calif., April 14 /PRNewswire-FirstCall/ -- Oclaro, Inc. (Nasdaq:OCLR - News), a provider of optical components, modules and subsystems to the telecom industry, today announced that its Board of Directors has approved a 1-for-5 reverse split of its common stock, pursuant to previously obtained stockholder authorization. The reverse stock split will be effective at 6:00 pm, Eastern Time, on April 29, 2010. Oclaro's common stock will begin trading on NASDAQ on a split adjusted basis when the market opens on April 30, 2010, under the temporary trading symbol "OCLRD." The trading symbol will revert to "OCLR" after approximately 20 trading days.
"By executing a reverse stock split we believe the higher share price will appeal to a broader universe of institutional investors," said Alain Couder, President and CEO of Oclaro, Inc. "We also believe a lower share count will better reflect the progress of our anticipated earnings improvements on a per share basis."
The Company also announced that based on its preliminary financial results for its fiscal third quarter, ended April 3, 2010, it expects revenue will be approximately $101.2 million. This compares with the original guidance range of $97 million to $102 million the Company provided on February 1, 2010, and revenue of $93.6 million reported for the second quarter of fiscal 2010, ended January 2, 2010.
"Demand remains strong across all our businesses and we continue to see improving order trends. Our revenue growth combined with crisp operational execution reinforces our confidence in achieving the 30 percent non-GAAP gross margin threshold in the June quarter," said Mr. Couder.
Oclaro cautions that any preliminary financial results are based on the best information currently available and are subject to completion of its financial statements for the third quarter of fiscal 2010. Management plans to hold a conference call to discuss its third quarter fiscal 2010 financial results on April 29, 2010 at 1:30 pm Pacific Time. To listen to the live conference call, please dial (480) 629-9761. A replay of the conference call will be available through May 6, 2010. To access the replay, dial (303) 590-3030. The conference code for the replay is 4285135. A webcast of this call will be available in the investors section of Oclaro's website at oclaro.com.
The reverse split will reduce the number of shares of the Company's common stock outstanding from approximately 212 million to approximately 42 million. Proportional adjustments will be made to Oclaro's outstanding stock options and other equity incentive awards, and its equity compensation plans.
Information For Stockholders
Upon execution, Oclaro stockholders will receive one new share of Oclaro common stock for every five shares held. Record holders of Oclaro common stock will receive a letter of transmittal shortly after the effective date with instructions for the exchange of stock certificates. Stockholders with shares in brokerage accounts will be contacted by their brokers with instructions. BNY Mellon Shareowner Services will act as the exchange agent, and can be contacted at (866) 298-4983 (domestic holders) or 1-201-680-6579 (international holders).
Oclaro will not issue fractional shares as a result of the reverse stock split. For record stockholders, the transfer agent for Oclaro's common stock will aggregate all fractional shares and arrange for their sale on the open market shortly after the effective date. Following the sale, stockholders will receive a cash payment from the transfer agent in an amount equal to the stockholders' pro rata share of the total net proceeds of these sales. No transaction costs will be assessed. Stockholders with shares held in brokerage accounts are encouraged to contact their brokers with any questions as some brokers may have different procedures for payment of fractional shares.
For more information on Oclaro's reverse stock split, see the Reverse Stock Split FAQs in the investors section of the Company's website at oclaro.com
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