Finisar Shares Up on Profit Projection
Friday September 2, 11:17 am ET
Finisar Shares Surge 24 Percent As Company Projects Third-Quarter Profitability
NEW YORK (AP) -- Finisar Corp. shares surged Friday after the provider of fiber-optic subsystems and network test systems reported its first-quarter revenue increased 32 percent, and forecast it would turn a profit in the third quarter.
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Late Thursday, the company said its first-quarter loss totaled $19.1 million, or 7 cents per share, compared with a loss of $22.1 million, or 10 cents per share, a year earlier. Excluding items, the company reported a loss of 3 cents per share -- matching Wall Street projections.
Revenue rose to $81.7 million from $61.9 million a year earlier.
"We believe that our continuing execution at the top line combined with a number of cost reduction initiatives that are taking place over the next two quarters should put us in a position to achieve our goal of returning to profitability in the near future and becoming profitable on a non-GAAP basis in the third quarter of the current fiscal year," President and Chief Executive Jerry Rawls said in a statement.
Analysts polled by Thomson Financial believe the Sunnyvale, Calif.-based company will post breakeven results during the third quarter. In last year's third quarter, Finisar posted a loss of 4 cents per share.
The report was enough to trigger Needham & Co. to upgrade the stock to a "Buy" rating from a "Hold."
Investors also followed suit by sending shares up 22 cents, or 24 percent, to $1.13 in morning trading on the Nasdaq. Before the earnings were released, shares of the company had fallen 60 percent since the start of the year. |
