Optical equipment makers fall after Sanmina pre-announcement

Shares of tech companies in the optical networking space are mostly lower, after contract manufacturer Sanmina (SANM) pre-announced late Friday. Sanmina makes some of the most "complex and innovative optical, electronic and mechanical products in the world." According to its website "Sanmina provides end-to-end design, manufacturing and logistics solutions, delivering superior quality and support to Original Equipment Manufacturers primarily in the communications networks, computing and storage, medical, defense and aerospace, industrial and semiconductor, multimedia, automotive and clean technology sectors." SANMINA RESULTS: Late Friday, Sanmina reported first quarter preliminary earnings per share of 48c, broadly, missing consensus estimates of 71c. Adding to investor woes, the company doesn't see much hope for its second quarter either. With its results, the company added, "Our disappointing financial results are driven by slower than expected new program ramps and an unfavorable program mix." Sanmina will adopt a restructuring program to address the issues and incur charges of $25M-$35M over the restructuring time period. Commenting on Sanmina results, RBC Capital's Mitch Steves said late Friday that continued softness in the optical segment is likely behind Sanmina's weakness. PRICE ACTION: Sanmina is down almost 24% to $26.98 per share in afternoon trading. As investors read through the Sanmina results, shares of optical stocks are in the red even as the technology-laden Nasdaq Composite (COMP) is up almost 1%, near its all-time high in early afternoon trading. Shares of optical companies are all weak, including Finisar (FNSR), Oclaro (OCLR), Lumentum (LITE) Viavi (VIAV), Ciena (CIEN), and Applied Optoelectronics (AAOI).