SAN JOSE -- A positive earnings forecast by a provider of optical and laser components suggests Fabrinet is recovering faster than expected from the Thailand floods.

Oclaro this week preannounced better-than-expected second-fiscal quarter sales, noting that substantial progress has been made by Fabrinet restarting flooded product lines in Thailand. Noting its revenue estimate of $86 million for the quarter ended Dec. 31 topped the company's November guidance of $75 million to $85 million, Oclara credited Fabrinet, saying four of the five flood-affected product lines at Fabrinet's Pinehurst facility would be producing commercial output by the end of January.

Oclaro accounted for 17% of Fabrinet's sales in fiscal 2011.

In a research note, Deutsche Bank senior analyst Sherri Scribner said announcement is viewed as a "positive" for Fabrinet. "It indicates that [Fabrinet] is recovering more quickly from the Thailand floods than previously expected.

"Fabrinet's capabilities are currently unmatched by other EMS providers and OEMs have limited capacity to increase in-house production," Scribner added, which belies concerns customers would move manufacturing to other EMS companies.

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