Acacia Communications Provides Update on U.S. Department of Commerce Settlement with ZTE
MAYNARD, Mass., June 12, 2018 (GLOBE NEWSWIRE) -- 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 3, 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 acost-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.
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