A warm response to its first quarter results sent shares in Oclaro (NASDAQ:OCLR) sharply higher.
The California-based fibre optics group posted underlying earnings 40% ahead of consensus forecasts at 14c.
Sales rose to US$135.5mln (US$87.6mln) with margins also higher as customers clamoured for faster connectivity speeds.
Greg Dougherty, chief executive, said demand for its 100G products in China and from data centres had driven the improvement.
“Based on the projected growth prospects for the data center,
Oclaro designs and manufactures modules and devices for faster computer connectivity, data transport, and increased bandwidth.
For the second quarter Oclaro forecast revenuers would rise to between US$146-154mln, also above previous forecasts.
Broker PiperJaffray raised its price target to US$13.50 per share, saying Oclaro has a big lead on the competition at present.
Shares have more than doubled this year and added a further 9% to US$8 today.
Story by ProactiveInvestors