UPDATE: Acacia Communications Shares Slide On News Of Manufacturing Issue

By Ciara LinnaneMarketsMarketWatch Pulse

Acacia Communications Inc. shares slid 4% in premarket trade Wednesday, after the company said it has identified a quality issue that is affecting some of its roughly 1,300 AC400 units and 5,000 CFP units made by one of its three contract manufacturers over a four-month period. The company develops transreceivers for optical networking applications. "The company believes the root cause of this quality issue has been identified as a circuit board cleaning process that has since been eliminated, and manufacturing at this contract manufacturer has resumed," it said in a regulatory filing. Acacia is now working with customers to resolve the issue, and working to determine the cost of the issue and to evaluate its impact on its manufacturing capacity. Shares are down 25% in 2017, while the S&P 500 has gained 8%.

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