Optical components maker Oclaro announced that it's suspended shipments to ZTE, in line with the US government export ban against the Chinese company. Oclaro said that despite losing ZTE as a customer generating over 10 percent of its revenues, it expects tight cost control and its product differentiation to help it maintain its financial performance.
The news was announced alongside Oclaro's results for its fiscal third quarter to March. The company's revenues fell to USD 127.3 million from USD 162.2 million a year ago, but were still at the high end of its guidance. Net profit dropped to USD 10.8 million from USD 38.2 million.
Oclaro did not issue guidance for the period ahead due to its pending acquisition by Lumentum. The takeover is expected to close in the second half of 2018, subject to approval by Oclaro's stockholders and antitrust regulatory approval in the US and China.
