Acacia Communications Provides Update on U.S. Department of Commerce Settlement with ZTE
June 12 2018 - 7:00AM
Acacia Communications, Inc. (NASDAQ:ACIA), a leading provider of
high-speed coherent optical interconnect products, today commented
on recent announcements regarding a settlement agreement between
the U.S. Department of Commerce and Zhongxing Telecommunications
Equipment Corporation, of Shenzhen, China (“ZTE Corporation”) and
ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (“ZTE
Kangxun”) (collectively, “ZTE”) that may ultimately allow Acacia to
resume its business relationship with ZTE. Unless and until
the U.S. Department of Commerce implements the settlement by
expressly removing ZTE from the Denied Persons List, the timing of
which is uncertain, Acacia will continue its suspension of all
affected transactions.
Acacia has no knowledge about the impact of the ban on ZTE and
its broader supply chain or the amount and timing of any demand
that ZTE may have for Acacia products. If, at any time,
Acacia determines that it is permitted to resume its business
relationship with ZTE, it will do so only in full compliance with
applicable rules and regulations published by the U.S. Department
of Commerce in the Federal Register.
Acacia is also reaffirming the guidance it announced on May 18,
2018 with respect to the second quarter of 2018, ending June 30,
2018.
About Acacia Communications
Acacia Communications develops, manufactures and sells
high-speed coherent optical interconnect products that are designed
to transform communications networks through improvements in
performance, capacity and cost. By leveraging silicon
technology to build optical interconnects, a process Acacia
Communications refers to as the “siliconization of optical
interconnect,” Acacia Communications is able to offer products at
higher speeds and density with lower power consumption, that meet
the needs of cloud and service providers and can be easily
integrated in a cost-effective manner with existing network
equipment. www.acacia-inc.com.
Forward Looking Statements
This press release includes statements concerning Acacia
Communications and its future expectations, plans and
prospects that constitute “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
For this purpose, any statements contained herein that are not
statements of historical fact may be deemed to be forward-looking
statements. Without limiting the foregoing, the words “may,”
“should,” “expects,” “plans,” “anticipates,” “could,” “intends,”
“target,” “projects,” “contemplates,” “believes,” “estimates,”
“predicts,” “potential” or “continue” or the negative of these
terms or other similar expressions are intended to identify
forward-looking statements. Acacia Communications has
based these forward-looking statements largely on its current
expectations and projections about future events and financial
trends that the Company believes may affect its business, financial
condition and results of operations. These forward-looking
statements speak only as of the date of this press release and are
subject to a number of risks, uncertainties and assumptions
including, without limitation, the statements regarding federal,
state and foreign regulatory requirements, including export
controls, and interpretations, economic sanctions and
anti-corruption regulations, regulatory developments in the
United States and foreign countries, including under export
control laws or regulations that have and continue to impede its
ability to sell its products to its customer ZTE or any of its
affiliates or that could impede its ability to sell products to
other customers in certain foreign jurisdictions, particularly
in China; the Company’s ability to sustain or increase revenue
from its larger customers, generate revenues from new customers, or
offset the discontinuation of concentrated purchases by its larger
customers with purchases by new or existing customer; the Company’s
expectations regarding expenses and revenue; its ability to
maintain and expand gross profit; the sufficiency of the Company’s
cash resources and needs for additional financing; the Company’s
ability to produce products free of problems, defects, errors and
vulnerabilities; the Company’s anticipated growth strategies; its
expectations regarding competition; the anticipated trends and
challenges in its business and the market in which it operates; the
Company’s expectations regarding, and the capacity and stability
of, its supply chain and manufacturing; the size and growth of the
potential markets for its products and the ability to serve those
markets; the scope, progress, expansion and costs of developing and
commercializing its products; the timing, rate and degree of
introducing any of its products into the market and the market
acceptance of any of its products; the Company’s ability to
establish and maintain development partnerships; its ability to
attract or retain key personnel; the Company’s ability to obtain
and maintain intellectual property protection for its products; and
the pending purported securities class action and derivative
lawsuits against the Company and its ability to defend against
them; and other risks set forth under the caption “Risk Factors” in
the Company’s public reports filed with the SEC, including the
Company’s Annual Report on Form 10-K for the year ended
December 31, 2017 and its Quarterly Report on Form 10-Q for
the fiscal quarter ended March 31, 2018 filed with
the SEC and in other filings that the Company may make
with the SEC in the future. Acacia Communications
assumes no obligation to update any forward-looking statements
contained in this press release as a result of new information,
future events or otherwise.
SOURCE Acacia Communications, Inc.
For further information:
Investor Relations Contact:Monica GouldOffice: (212)
871-3927Email: IR@acacia-inc.com
Lindsay SavareseOffice: (212) 331-8417Email:
IR@acacia-inc.com
Public Relations Contact:Ed Harrison Office: (781)
966-4158Email: ed@inkhouse.com
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