Integrated Device, Lumentum Detail ZTE Effects

   By Josh Beckerman

Integrated Device Technology Inc. and Lumentum Holdings Inc. detailed the expected effects of new U.S. trade restrictions on Chinese technology company ZTE Corp.

The Commerce Department alleges ZTE violated U.S. export rules by supplying Iran with U.S.-made high-tech goods. ZTE said it adheres to laws and regulations wherever it operates and is cooperating with U.S. agencies.

The restrictions essentially bar U.S. companies from supplying ZTE with an array of restricted goods, including computers, software and telecommunications equipment.

Semiconductor maker IDT said its ZTE-related revenue has historically ranged from about $3 million to $4 million per quarter. It expects minimal impact for the quarter ending April 3, but the ruling may affect revenue trends starting in the next quarter.

IDT believes "any adverse impact will be transitory, as IDT is strongly positioned across a wide range of customers and applications in communications infrastructure."

In the quarter ended Jan. 3, IDT's revenue was $177.6 million.

IDT shares fell 4.9% to $19.72 on Tuesday.

Meanwhile, optical and photonic products company Lumentum said its sales to ZTE were less than 1% of total sales in the first half of fiscal 2016. Recent business levels haven't been material, the company said.

Earlier Tuesday, optical products company Oclaro Inc. said revenue from ZTE in the current quarter to date is expected to exceed 10% of its total.

Lumentum shares fell 3.3% to $23.74 Tuesday, while Oclaro declined 15% to $4.

Other U.S. suppliers to ZTE include Qualcomm Inc. and Intel Corp.

ZTE is a major global provider of telecom-networking equipment such as cellphone base stations and antennas, and is also the only Chinese smartphone brand with substantial handset sales in the U.S.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

March 08, 2016 20:55 ET (01:55 GMT)

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