As a result of the US decision, from 8 March suppliers to ZTE shipping products from the US must apply for a license from the US government, and the latter's standard policy will be to deny such licences. ZTE said it's conducting a "thorough assessment" of the potential impact of the restrictions on its business, but it was still uncertain what the effect would be. In addition, the company will continue to be cooperate in the US's investigations and work on talks to resolve the situation.
Following the confirmation, several of ZTE's suppliers issued statements on the impact of their business. Lumentum and Neophotonics said that ZTE accounted for less than 1 percent of sales and the US decision was not expected to have an impact. Oclaro sees a bigger impact, saying ZTE purchases multiple products from Oclaro. In the company's fiscal third quarter, ZTE is expected to account for over 10 percent of revenues. Oclaro said it expects results for the quarter to be at the low end of its guidance.
