Oclaro sells GaAs laser diode business in Zurich
Oclaro, which also owns the former Plessey Caswell fabrication facility in the UK, is restructuring its business to reduce costs and focus on its core optical communications activities.
“The sale of our gallium arsenide laser diode business is an important first step in our plan to restructure the company,” said Greg Dougherty, CEO, Oclaro.
Another sale could follow. II-VI also has the option to purchase Oclaro’s optical amplifier and micro-optics business for $88m in cash.
“We will use the proceeds from the sale to fully repay our bridge financing and to begin restructuring the company for the future. We intend to further simplify our operating footprint, reduce our cost structure and focus our R&D investment in the optical communications market where we can leverage our core competencies,” said Dougherty.
The Zurich-based business develops and manufactures high power laser diodes, VCSEL and 980nm pump lasers. It has a GaAs fabrication facility in Zurich and a related R&D facility in Tucson.
Oclaro will continue the back-end manufacturing of the 980nm pump and some high power laser diode products at its Shenzhen, China manufacturing facility and supply them to II-VI under a manufacturing services agreement. The employees of Shenzhen, China will continue to be employed by Oclaro.
The option to purchase Oclaro’s optical amplifier and micro-optics business, for which II-VI separately paid $5m in cash, will expire if not exercised within 30 days.
Total proceeds received by Oclaro today were $97m.
Oclaro reported a non-GAAP net loss for the fourth quarter of $30.3m on revenues of $136.1m.
“While our fiscal fourth quarter results were in line with our expectations, the continued losses underscore the urgency of our turnaround plans. We remain focused on transforming Oclaro into a sustainable company that will deliver shareholder value over the long-term,” said Dougherty.