ZTE ban hits shares of U.S. optical component suppliers
(Reuters) - Shares of American optical components makers fell on Monday after the U.S. Department of Commerce decided to ban companies from selling components to Chinese telecom equipment maker ZTE Corp for seven years.
ZTE pleaded guilty last year in federal court in Texas for conspiring to violate U.S. sanctions by illegally shipping U.S. goods and technology to Iran.
Shares of Maynard, Massachusetts-based Acacia Communications Inc, an exclusive supplier to ZTE which got 30 percent of its total revenue in 2017 from the company, fell as much as 34.7 percent in early trade, hitting a record low.
Shares of another supplier, Oclaro Inc, which earned 18 percent of its fiscal 2017 revenue from ZTE, fell 17 percent.
Stocks of other optical companies were also trading lower. Lumentum Holdings Inc fell 6.8 percent, Finisar Corp 3.7 percent, Inphi Corp 11.3 percent, Fabrinet 10.4 percent, and NeoPhotonics and Applied Optoelectronics 4.7 percent each.
Lumentum declined to comment, while others optical component makers were not immediately available for comment.
Reporting by Sonam Rai and Arjun Panchadar in Bengaluru; Editing by Shailesh Kuber and Arun Koyyur