Acacia Communications, Inc. | $ACIA Stock | Shares Shoot Up On Impressive Second Quarter Earnings & Revenue Numbers


Acacia Communications, Inc.  (NASDAQ: ACIA)



Acacia Communications, Inc. (ACIA), a global company that provides high-speed coherent interconnect products yesterday reported their second quarter 2016 financial results. Acacia reported second quarter earnings of $0.77 per share which crushed analyst expectations of $0.30 per share. Acacia reported second quarter revenues of $116 million which beat analyst expectations of $85.8 million.


Acacia Communications, Inc. CEO’s Comments

“Our record second quarter results exceeded our expectations across the board and reflect the success of our disruptive technology in transforming cloud, content and communications networks.  These results are a testament to our strategy and demonstrate our leadership position in the high-growth 100G plus optical networking market,” said Raj Shanmugaraj, President and CEO of Acacia Communications, “We continue to see strong global demand for our products, driven by metro and inter-data center network infrastructure buildouts.”

“We are delighted to have completed our IPO during the second quarter and are excited about the many opportunities ahead of us,” said John Gavin, CFO of Acacia Communications, “The IPO enabled us to strengthen Acacia Communications’ balance sheet while providing substantial capacity to further grow the business.”   Globe Newswire


ACIA Technical Analysis

ACIA opened trading yesterday at $71.63 which was up from the previous days trading of $69.20. ACIA closed trading yesterday at $67.70 and spiked up after market to $81.50, equivalent to a 20% increase from the closing price. Taking a look at the daily chart we can that we are in unchartered territory as ACIA is trading at all time highs. Taking a closer look at the daily chart we can see that ACIA had been in a upward trend dating back to June 27th when it traded at $33.18 . ACIA has a float of 896.5 thousand shares and traded 1.65 times the normal daily trading volume on Thursday. For trading purposes, I would like to see ACIA open trading on Friday above $77.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $1.00 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

Acacia Communications, Inc. is engaged in delivering coherent optical interconnect products. The Company offers its products for communications networks, relied upon by cloud infrastructure operators, and content and communication service providers. The Company offers siliconization of optical interconnect process. The Company’s products include a series of low-power coherent digital signal processor application-specific integrated circuits (DSP ASICs) and silicon photonic integrated circuits (silicon PICs), which it has integrated into families of optical interconnect modules with transmission speeds ranging from 40 to 400 gigabits per second (Gbps) for use in metro and inter-data center markets. Its modules perform a range of DSP and optical functions in optical interconnects. With standard interfaces, the Company’s modules are integrated with customer’s network equipment. The software in its modules enables configurability and automation; provides insight into network and connection point characteristics, and helps identify network performance problems. The Company’s modules are rooted in its coherent DSP ASICs and silicon PICs. Its coherent DSP ASICs are manufactured using complementary metal oxide semiconductor (CMOS) and its silicon PICs are manufactured using a CMOS-compatible process.