Oplink Communications, Inc. (OPLK) recently reported its Q4:FY08 revenue and EPS above our and consensus estimates, and with margins above our projected levels. The company reported solid growth in its passive components and OMS business, as well as better than expected revenue in ROADMs which more than offset bottoming OCP product sales that were adversely affected by manufacturing transition related capacity constraints.

OPLK guided Q1:FY09 sales above consensus estimates and Q1 pro forma EPS with the guidance range midpoint below consensus estimates. While we are encouraged by the results delivered and the guidance provided in the quarter we are taking a slightly more conservative stance on the ramp of the acquired OCP business and are modestly reducing our FY09 revenue and pro forma EPS estimates. With the company’s cash balance accounting for 53% of its market cap, we view the company’s announced repurchase plan as an incremental positive.

OCP product sales