The reverse stock split will take place on April 29, 2010. Oclaro’s common stock will begin trading on Nasdaq on a split adjusted basis the following day under the temporary trading symbol “OCLRD.” The trading symbol will revert to “OCLR” after approximately 20 trading days.
Upon execution, Oclaro stockholders will receive one new share of Oclaro common stock for every five shares held. The reverse split will reduce the number of shares outstanding from approximately 212 million to approximately 42 million.
Management believes that a reverse stock split will push the share price higher because of the lower share count.
Oclaro Inc. was formed in April 2009 combining Bookham Inc. and Avanex Corporation. Oclaro, a Delaware corporation, designs, manufactures and markets optical components, modules and subsystems that generate, detect, amplify, combine and separate light signals principally for use in high-performance fiber optics communication networks.
Meanwhile, the company also provided preliminary results for the third quarter ended April 3, 2010. Oclaro is expected to report revenues of approximately $101.2 million, towards the higher end of the original guidance of $97 – $102 million. This compares with $93.6 million reported in the second quarter.
Management stated that demand remains strong across all its businesses and orders continue to improve. Improvement in the top line and operational efficiency should help the company to generate an operating margin of 30% in the third quarter.