Facebook Deal, Market Share on the Mind of Acacia CEO
Acacia (ACIA) - Get Report Communications may be down from its $127 per share summer peak, but at $74 the optical networking provider's stock is still more than triple its May IPO price. And while the stock may have cooled off slightly, demand for its connectivity products remains red hot, said the company's CEO Raj Shanmugaraj. "Customers around the globe continue to want higher bandwidth connectivity and we see no signs of that slowing in the near future," said Shanmugaraj. For the current quarter ending in December, Acacia expects its earnings to range from $0.85 to $0.92 a share. The company said it expects revenue in the range of $136 million to $141 million for the fiscal fourth quarter. One of the big worries about Acacia on Wall Street is its concentrated customer base, something Shanmugaraj says is a priority for the company. During the past Acacia has grown its customer list from eight in 2011 to more than 25. Facebook (FB) - Get Report also announced in the third quarter it was incorporating Acacia's AC 400 product in its Telecom Infrastructure Project also known as TIP. "Facebook is growing their data center base at a hectic clip, both domestically and internationally, so this is a great opportunity for us to supply a strong partner," said Shanmugaraj.
