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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot com, the Radio plus mobile last, and on your radio.

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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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Speaker 1: I'm Katherine Cowdery, Bloomberg. Taking SOCC is brought to you

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Speaker 1: dot net. We chalk to markets every fifteen minutes throughout

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Speaker 1: the trading day. Let's go over to the First Word

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Speaker 1: Breaking news desk for today's afternoon call with Bill Maloney. Bill,

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Speaker 1: good afternoon, Katherine. It's been a quiet day for the

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Speaker 1: main U savages, with the Dow currently down fifty two points,

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Speaker 1: subs drop four, and that ZAK is little changed. The

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Speaker 1: small cap six hundreds down two points. In the U

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Speaker 1: S ten yield that one point five one per cent

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Speaker 1: seven out of tennis B sectors are lower, led by

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Speaker 1: lasses in materials, tele com, and the industrials. Energy, consumer,

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Speaker 1: staples and utilities gained down. Transports drop forty one, as

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Speaker 1: a bytext game five you, utilities rise one, and the

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Speaker 1: VIX is little changed. Down leaders said. The downside included DuPont,

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Speaker 1: IBM and Microsoft will X on mobile and Coca Cola

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Speaker 1: led to the upside. Nordstrom gained as much as nine

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Speaker 1: a half percent after its earnings, while in the video

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Speaker 1: game five percent after its results. Live from the first

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Speaker 1: breaking news desk gone, Bill Maloney, Katherine, thank you villan

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Speaker 1: to hear live breaking news of your Bloomberg type s

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Speaker 1: q u a K on your terminal less Texas intermediac

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Speaker 1: crude oil currently up ninety six cents of barrel two

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Speaker 1: point two percent to forty four forty five spot goled

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Speaker 1: down nine dollars announced to thirteen forty one even. Ten

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Speaker 1: year treasury up thirteen thirty seconds yield one point five

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Speaker 1: one percent. And that's a Bloomberg business flash. You're listening

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Speaker 1: to taking stock with Kathleen Hays and Pim Fox on

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Speaker 1: Bloomberg Radio. Acacia Communications reporting their first results and performance

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Speaker 1: since the I p O that took place in May.

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Speaker 1: Here to tell us more is John Gavin. He is

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Speaker 1: the chief financial officer and he joins us now. John,

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Speaker 1: thanks very much for being with us, Oh, thanks for

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Speaker 1: having us on the call today. Tell us a little

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Speaker 1: bit about Acacia Communications. I know they're based in Boston,

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Speaker 1: home to Bloomberg. Tell us a little bit about the

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Speaker 1: company and how you help traditional telecom carriers. Sure I'd

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Speaker 1: be glad too. So little history in Acacia, founded back

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Speaker 1: in June of two thousand and nine. We're here in

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Speaker 1: the old Mannard Mill complex where Digital Equipment Corporation was

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Speaker 1: headquartered for many years. What we really do is we

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Speaker 1: build a product called a optical interconnect module, and that

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Speaker 1: module is is a subsystem that sits into the switching

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Speaker 1: gear for fiber optics networks. And what we do is

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Speaker 1: we have a two silicon building blocks, a DSP, a

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Speaker 1: SICK and a technology and those two chips have radically

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Speaker 1: simplified building some of these high speed switching devices that

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Speaker 1: are required for the bandwidth needed by the telecommunications and

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Speaker 1: content service providers around the globe. So what you make

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Speaker 1: it easier for them to build their high speed networks,

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Speaker 1: or you make it easier for them to build them smaller,

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Speaker 1: or you make it easier for them to go faster.

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Speaker 1: What is it? No, that's a great question. So we

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Speaker 1: we do almost all the above. So today one of

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Speaker 1: the biggest problems and networks is is that the older

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Speaker 1: fiber optics systems were either ten or forty gigabyte. And

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Speaker 1: because of the explosive demand for all the applications out there,

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Speaker 1: be it voice based, be it mobile, be a cloud computing,

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Speaker 1: all of those applications now have increased the worldwide demand

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Speaker 1: for capacity. So our products have taken those switching capacities.

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Speaker 1: So at the core of what we do, we take

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Speaker 1: the LightWave signals, we convert them to digital signals and

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Speaker 1: back if need be, at very very high speeds. So

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Speaker 1: by being able to increase the capacity of the of

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Speaker 1: the devices that they have, they're able to almost instantly

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Speaker 1: increase their throughput capacity to handle these ever increasing workloads

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Speaker 1: that are that are proliferating the networks around the world today. John,

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Speaker 1: it also seems that you've been able to at least

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Speaker 1: turn some investor money into even more investor money. Your

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Speaker 1: stock is of forty you see, your stock is of

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Speaker 1: forty percent today. Yes, you have a lot of happy

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Speaker 1: people there. We have a lot of happy employees, we

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Speaker 1: have a lot of happy investors, and it's it's been

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Speaker 1: a very good day for occasion. Yeah. I mean, obviously

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Speaker 1: if you double your revenue year over year, that kind

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Speaker 1: of thing tends to happen. How how is that doubling happening.

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Speaker 1: Are you winning business from competitors, or is this business

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Speaker 1: just growing so much where you're operating in China and

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Speaker 1: Germany here in the US. Well, that's a great question.

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Speaker 1: I think what's happening right now is that there's a

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Speaker 1: glow mobile explosion and need for bandwidth build out the

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Speaker 1: sheer rock capacity, and that's happening at various parts of

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Speaker 1: the network. So originally the long haul part of the network,

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Speaker 1: these are these are very long connections sometimes under the sea,

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Speaker 1: trans specific Transatlantic. A lot of those connections were upgraded first.

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Speaker 1: Now we're seeing this second wave where the metro location,

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Speaker 1: so these are a lot more connections in major metropolitan

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Speaker 1: areas across the world needing this increase or upgrade incapacity.

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Speaker 1: And then, as you said earlier, there are certain markets

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Speaker 1: that are real high growth right now, is particularly in China,

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Speaker 1: where there is really almost a national agenda to upgrade

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Speaker 1: their infrastructure so that their internet backbone activity can be

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Speaker 1: at at a much highest throughput level. So there's a

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Speaker 1: lot of market moving factors that have created global demand

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Speaker 1: for our products that we support our customers for. Yeah,

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Speaker 1: your three year growth in China is more than in Germany.

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Speaker 1: You're basically tripling over three years. Um, where's your where

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Speaker 1: is your focus right now? Because those two markets are

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Speaker 1: bigger for you than say the US or other European nations. Yeah,

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Speaker 1: those maybe more traditional market growth areas for US, but

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Speaker 1: we're really seeing a trend of global demand for these products. So,

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Speaker 1: for instance, in North America, there are a lot of

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Speaker 1: the web scale service providers who are now starting to

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Speaker 1: build out next generation networks of their own networks, and

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Speaker 1: so they're starting to be at the beginning parts of

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Speaker 1: ramping up their capacity in order to service their customers better.

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Speaker 1: So we're really seeing demand factors across the board globally

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Speaker 1: increase for the types of products that we produce, John,

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Speaker 1: are you hiring right now? What kinds of positions are

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Speaker 1: you looking to fill? Yees? So that's a great question.

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Speaker 1: We're always hiring. Um, we have very technical product as

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Speaker 1: you can imagine, so we're always looking for are people

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Speaker 1: who have optical and electrical engineering expertise. Uh, we're hiding

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Speaker 1: across the board. In terms of operational activity, a lot

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Speaker 1: of what we do is very complex manufacturing. So our

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Speaker 1: operations team is is growing as well, so it's really

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Speaker 1: across the board in a lot of technical disciplines and

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Speaker 1: always looking for for the best and brightest. All right, John,

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Speaker 1: thanks so much. John. Gavin there the chief financial officer

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Speaker 1: of Acacia Communications three and a half billion dollar market cap,

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Speaker 1: and as PIM says, fort of that comes from today's

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Speaker 1: trading alone. The takers a c I A equity. This

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