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Acacia Falls 5%: Q3 Beats, Q4 View Misses

Analysts had been modeling $104.4 million in revenue, and 35 cents a share in net income.

For the current quarter, the company sees revenue in range of $83 million to $93 million, and EPS of 19 cents to 36 cents, compared to consensus for $113 million and 47 cents per share.

Like peers in communications and fiber optics, CEO Raj Shanmugaraj said the industry was "still facing some headwinds, particularly in China," but added that he was "pleased" with how the company "executed" during the quarter.

Shanmugaraj said the company was making sales off of a small number of customers:

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.

CFO John Gavin noted that the 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 in the second quarter as a result of the previously announced quality issue."

Acacia shares are down $1.86, or almost 5%, at $37.24, in late trading.


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