High-speed optical interconnect product producer, Acacia Communications (NASDAQ:ACIA) launched its outcomes for the fourth quarter of 2018. For the third time in a row, the corporate managed to beat analyst expectations by way of income in addition to profitability.
Acacia reported a top-line of $107.10 million which implied a 23.7% progress over the corresponding quarter of the earlier yr. They beat the Factset analyst consensus estimate by as a lot as $4.23 million which is a major income beat. The margins of Acacia Communications have been strong because it reported an EPS of $0.41, nearly the identical as the quantity reported in Q3 2018. The firm’s EPS beat analyst expectations by 6 cents a share.
With a robust base of 354 staff, Acacia works in direction of creating merchandise which can be meant to remodel communications networks by way of enhancements in efficiency, capability, and price. The administration attributes the fourth quarter income progress to the rise in shipments of the CFP2 DCO module. The firm additionally made good progress by transitioning its AC1200 module to the manufacturing part after indication from its prospects that the module will start producing revenues for them kind Q2 2019.
CEO Murugesan Raj Shanmugaraj and the administration see a wonderful alternative within the Chinese market because of this of the robust telecom and community associated spending. Acacia already has a robust base of NEM prospects within the Chinese market however with 5G and different broadband rollouts coming into the image, the demand for Acacia’s merchandise is anticipated to go up. While tariffs proceed to be a priority for the administration coupled with the US-China commerce talks, this chance is actually anticipated to profit the top-line.
It can be attention-grabbing to see whether or not the corporate is ready to preserve its double-digit progress within the coming quarters of 2019.