TECHNOLOGY
Acacia Communications Ups Guidance, But Tumbles On Stock Offering
Acacia filed for a secondary offering, sending shares down. (Acacia Communications)
Acacia filed for a secondary offering, sending shares down. (Acacia Communications)
REINHARDT KRAUSE9/26/2016
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Shares of Acacia Communications (ACIA), which has been a hot IPO, suffered their worst one-day loss, after the fiber-optic gear maker filed to offer up to $450 million in stock, with $325 million to be offered from selling shareholders.
Acacia also raised its Q3 guidance, though relatively modestly above Wall Street expectations.
Acacia shares tumbled 10.2% to end at107.12 the stock market today after dropping as low as 106.50 intraday. The maker of high-speed optical devices went public in May, pricing shares at 23 and raising $119 million. Its biggest drop had been a 9.7% decline on Sept. 9. Shares peaked at 128.73 on Sept. 7. Post-IPO, venture capital firms Matrix Partners, Commonwealth Capital and Summit Partners owned nearly 60% of Acacia.
In its 8-K filing with the SEC, Acacia said it expects September quarter non-GAAP EPS of 72 cents to 81 cents and revenue of $129 million at the midpoint of its guidance. Analysts polled by Thomson Reuters had modeled 73 cents and $128.4 million.
IBD'S TAKE: Acacia stock popped after Q2 earnings and revenue beat expectations. The stock has been in a trading range since then. IBD's Telecom-Fiber Optics group is ranked No. 1 out of 197 industry groups. Besides Acacia, the group's leaders include Oclaro, Lumentum Holdings and Finisar. Learn more at IBD Stock Checkup.
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Maynard, Mass.-based Acacia in July had forecast 70 cents non-GAAP profit and $124 million in revenue for the current quarter, at the midpoint of its guidance.
Acacia crushed estimates in its last earnings report.
Acacia's co-founders — CTO Benny Mikkelsen, Christian Rasmussen and Mehrdad Givehchi — are veterans of the fiber optics industry. Mikkelsen worked at Bell Labs before the merger of Alcatel and Lucent Technologies. Mikkelsen co-founded Mintera — which Oclaro acquired in 2010 for $12 million — in 2000, where Rasmussen and Givehchi held engineering positions.
Mikkelsen, Rasmussen, and Givehchi started Acacia in 2009. Shanmugaraj, a former vice president in the optical networking division of Alcatel-Lucent USA, became Acacia's CEO in April 2010.
As for other fiber optics stocks. Oclaro (OCLR) finished 1.9% lower, Lumentum (LITE) ended virtually flat and Finisar (FNSR) dipped 0.2%.
