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To: The Ox who wrote (1224)	11/8/2012 10:01:37 AM
From: The Ox	1 Recommendation Read Replies (1) \| Respond to of 8239

MEMC Electronic Materials Inc. ( WFR ) reported third-quarter 2012 adjusted earnings per share of 30 cents, which outperformed the Zacks Consensus Estimate of 12 cents loss per share. Shares rose 4.18% in after-hours. The adjusted figure excludes the impact of direct sales and lease-back from the Solar Energy segment as well as some tax benefits, and also excludes restructuring and impairment charges. Revenues On a GAAP basis, MEMC reported third-quarter revenues of $601.6 million, up 16.5% from $516.2 million in the year-earlier quarter. The reported revenue surpassed the Zacks Consensus Estimate of $473.0 million. Weak contribution from Semiconductor Materials was more than offset by the strong performance of the Solar Energy segment. Including direct sales from the Solar Energy segment and lease-back transactions, non-GAAP revenue came in at $708.9 million, which decreased 17.5% from the year-ago quarter. Segment wise, revenue from Semiconductor Materials fell 10.5% year over year to $240.3 million and was 39.9% of total revenue. MEMC witnessed lower wafer volume growth and average selling prices (ASPs). The semiconductor industry is going through a cyclical downturn and hence softer demand for the same adversely affected shipments and pricing. Nevertheless, the segment witnessed sequential growth based on higher volume and relatively flat pricing. The Solar Energy segment (which now includes Solar Materials) accounted for 60.1% of total revenue. The segment generated revenue of $361.3 million, up 45.8% year over year. The improvement was driven by higher project sales, partially offset by lower solar wafer pricing and volume. Solar Energy segment sold 48 megawatts (MW) of solar energy systems, compared with 3MW in the year-ago quarter. Projects interconnected during the third quarter represented 47 MW in 18 projects. MEMC also reported that construction of 117 MW of systems is underway. The project pipeline remained unchanged year over year at 2.9 gigawatt. Operating Results Reported gross profit was $86.9 million, up from $58.6 million in the year-ago quarter. Gross margin was 14.4%, compared with 11.4% in the year-ago quarter. The margin expansion was due to higher charges and lower pricing, partially offset by cost control initiatives. Operating income was $58.9 million, compared with operating loss of $103.8 million in the year-earlier quarter. Operating margin was 9.8%, compared with (20.1%) in the year-ago quarter. Total operating expenses decreased 82.8% from the year-ago quarter with marketing and administration expenses falling 17.8% and research and development expenses decreasing 22.0%. Reported net income was $37.0 million or 16 cents per share, compared with net loss of $94.4 million or (41) cents in the prior-year quarter. However, adjusted earnings per share (EPS) were 30 cents, up 236.4% from the loss per share of 22 cents in the year-ago quarter. Balance Sheet & Cash Flow MEMC ended the quarter with cash, cash equivalents and restricted cash of $694.0 million, up from $501.7 million in the previous quarter. Long-term debt was $765.5 million, up from $569.1 million in the previous quarter. Debt increased as a result of generating funds for upcoming solar projects. MEMC generated $3.0 million cash in operations, significantly down from $100.3 million in the preceding quarter. Capital expenditure was $24.0 million, down from $36.3 million in the previous quarter. Guidance Keeping in mind the ongoing uncertainty in the semiconductor and solar markets, MEMC refrained from providing any quantitative revenue and EPS guidance for the fourth quarter. For the fourth quarter, management expects Semiconductor Materials segment revenue to be down 4.0-11.0% sequentially. Solar Energy systems sales is expected to range between 90 MW and 120 MW (pricing per watt to be roughly $3.50), which will be higher than 48 MW sold during the third quarter. Furthermore, MEMC expects operating expenses of less than $90.0 million and capital expenditure of less than $35.0 million in the fourth quarter. Conclusion MEMC posted a decent third quarter with both the top and bottom lines surpassing the Zacks Consensus Estimates. Cash balance improved but cash from operating activities decreased. Solar systems sales were higher but could not match the prior-quarter level. Considering the current market trend, it is difficult to predict whether the Solar Energy segment will sustain its growth momentum. The company itself is uncertain about the environment, which can be easily inferred from a weak fourth quarter guidance. However, we are encouraged by management's commentary of expecting a better demand/supply situation in the semiconductor market in 2013. Of course, expense control will also provide some support. Though solar system sales trajectory looks impressive, we are concerned due to cessation of MEMC's long-term solar wafer supply agreement with Suntech Power Holding Co. Ltd. ( STP ) and lack of new long-term supply agreements. Currently, MEMC has a Zacks #4 Rank, implying a short-term Sell rating. Read more: http://community.nasdaq.com/News/2012-11/memc-beats-semi-uncertainty-looms-analyst-blog.aspx?storyid=188265#ixzz2BdxFNiSt

To: The Ox who wrote (1224)

11/8/2012 5:32:41 PM

From: The Ox

Read Replies (1) | Respond to of 8239

optics.org

Oclaro shows ‘100G leadership’

Oclaro (NASDAQ: OCLR), a tier-one provider and innovator of optical communications and laser solutions, debuted a range of 100G products and technologies in Amsterdam, as well as providing a number of key speakers for industry panels. Jim Haynes, President of Oclaro’s Global Business, commented, "Oclaro has been able to leverage decades of optical expertise to deliver a complete portfolio of 100G solutions that provide the performance, reliability, small form factor and low power consumption that customers need to deploy and interface with today's high-speed coherent networks."

On show, among other products, was Oclaro’s latest “second-generation 100G CFP (Centum Gbit/s form-factor pluggable) transceiver and first-generation CFP2 100G transceiver designed for 10km transmission over single-mode fiber. These low power transceivers represent the industry's first interoperable CFP and CFP2 solutions available and designed for 100G networks for the core, metro, access, enterprise and datacenter deployments.

Finisar’s WaveShaper and 100GE CFP2 module

Finisar's 100 GE (Gigabit Ethernet) CFP2 module, based on the CFP2 MSA form factor.

Finisar (NASDAQ: FNSR) demonstrated its new WaveShaper 2000S Polarization Processor and WaveShaper 4000S Fourier Processor, describing both devices as enabling more thorough system testing and reduced development time for optical components and systems.

In addition, Finisar showed its 100 GE (Gigabit Ethernet) CFP2 module, based on the CFP2 MSA form factor. This high-density, hot-pluggable optical transceiver is designed for standards-compliant 100GBASE-LR4 and OTU4 applications. It is optically interoperable with Finisar’s existing 10km 100GE CFP modules. Lower power dissipation is a very critical feature for high port-count line cards that utilize the CFP2 form factor.

JDSU highlights 100G technologies

JDSU, a key developer of optical products and test & measurement systems for communications launched new test technology including the 100G CFP 2 Testing System, which JDSU claims to be the world’s first solution for testing next-generation 100G networks with CFP 2 modules.

Furthermore, JDSU’s new 100G Multichannel Test Solution enables design verification of Optical Transport Networks at 32 times the speed of previous testers. The company commented, “By testing multiple Optical Channel Data Units simultaneously instead of by traditional sequential tests, component and system vendors can ensure the key switching capabilities for 100G transmission products.

Also emphasizing the communications sectors transition to 100Gbit/s and above, JDSU presented its 40-100G transmission components and modules, of which the company said, “Modulators and receivers are being shipped in volume to NEMs (nanoelectromechanical systems manufacturers) for high-speed networks that operate at 40G and 100G data rates. JDSU now also offers custom solutions for 40G and 100G modules.”