| 2017-01-23 09:30:33|
FNSR, OCLR… 09:30 01/23 01/23/17
Finisar lower after Rosenblatt uncovers Huawei disqualification
Rosenblatt analyst Jun Zhang told investors in a research note that he believes Huawei has disqualified Finisar (FNSR) for its 100G CFP2 production starting January 1 due to a firmware issue resulting in incompatibility. The orders have instead been given to Oclaro (OCLR) and Lumentum (LITE), Zhang writes, citing his firm's due diligence. He estimates the impact to Finisar's quarterly revenue at $20M. The analyst sees risk to Finisar's gross margin guidance of 37%-38%. The company is down 7%, or $2.00, to $28.00 in pre-market trading.
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