Finisar Announces Second Fiscal Quarter Financial Results
SUNNYVALE, CA--(Marketwire - Dec 5, 2012) - Finisar Corporation ( NASDAQ : FNSR ), a global technology leader for subsystems and components for fiber optic communications, today announced financial results for its second fiscal quarter ended October 28, 2012.
COMMENTARY
"I am pleased to report fiscal second quarter revenues of $232.0 million, which is $11.5 million, or 5.2%, greater than the prior quarter. Our growth in revenues came primarily from sales of tunable XFP transceivers and wavelength selective switches, including ROADM line cards," said Jerry Rawls, Finisar's executive Chairman of the Board. "In addition, operating income increased at a faster rate than revenues because we were able to hold operating expenses relatively flat. This was accomplished in spite of the impact of a full quarter of operating expenses from operation of our RED-C subsidiary, which we acquired during the first quarter."
"During the quarter, we continued to invest significantly in technology and product development and made substantial progress on a number of new products including tunable SFP+ transceivers, 100G coherent transponders, and next generation 100G client CFP and CFP2 transponders. We expect these new products to drive our future revenue growth and market share expansion in calendar 2013 and beyond," said Eitan Gertel, Finisar's Chief Executive Officer.
| | | | FINANCIAL HIGHLIGHTS -SECOND QUARTER ENDED October 28, 2012 | | | | | | Summary GAAP Results | | Second | | | First | | | | | Quarter | | | Quarter | | | | | Ended | | | Ended | | | | | October 28, 2012 | | | July 29, 2012 | | | | | (in thousands, except per share amounts) | | | | | | | | | | | | | Revenues | | $ | 232,041 | | | $ | 220,526 | | | Gross margin | | | 27.5 | % | | | 26.2 | % | | Operating expenses | | $ | 63,820 | | | $ | 62,994 | | | Operating income (loss) | | $ | 54 | | | $ | (5,197 | ) | | Operating margin | | | 0.0 | % | | | (2.4 | )% | | Income (loss) | | $ | 271 | | | $ | (6,197 | ) | | Income (loss) per share-basic | | $ | 0.00 | | | $ | (0.07 | ) | | Income (loss) per share-diluted | | $ | 0.00 | | | $ | (0.07 | ) | | | | | | | | | | | | Basic shares | | | 92,780 | | | | 91,988 | | | Diluted shares | | | 94,735 | | | | 91,988 | | | | | | | | | | | | | | | | | | | | | Summary Non-GAAP Results (a) | | Second | | | First | | | | | Quarter | | | Quarter | | | | | Ended | | | Ended | | | | | October 28, 2012 | | | July 29, 2012 | | | | | (in thousands, except per share amounts) | | | | | | | | | | | | | Revenues | | $ | 232,041 | | | $ | 220,526 | | | Gross margin | | | 30.5 | % | | | 30.3 | % | | Operating expenses | | $ | 54,846 | | | $ | 54,710 | | | Operating income | | $ | 15,838 | | | $ | 12,000 | | | Operating margin | | | 6.8 | % | | | 5.4 | % | | Income | | $ | 14,205 | | | $ | 10,871 | | | Income per share-basic | | $ | 0.15 | | | $ | 0.12 | | | Income per share-diluted | | $ | 0.15 | | | $ | 0.12 | | | | | | | | | | | | | Basic shares | | | 92,780 | | | | 91,988 | | | Diluted shares | | | 98,483 | | | | 94,204 | | | | | | | | | | | |
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(a) In evaluating the operating performance of Finisar's business, Finisar management utilizes financial measures that exclude certain charges and credits required by U.S. generally accepted accounting principles, or GAAP, that are considered by management to be outside Finisar's core operating results. A reconciliation of Finisar's non-GAAP financial measures to the most directly comparable GAAP measures, as well as additional related information, can be found under the heading "Finisar Non-GAAP Financial Measures" below.
Operating Statement Highlights for the second quarter of fiscal 2013:
Revenues increased to $232.0 million, an increase of $11.5 million, or 5.2%, from $220.5 million in the preceding quarter, primarily driven by growth in revenues from tunable XFP transceivers and wavelength selective switches, including ROADM line cards.
Compared to the preceding quarter, the sale of products for telecom applications increased by $11.1 million, or 13.7%, and the sale of products for datacom applications increased by $0.4 million, or 0.3%.
Gross margin increased to 27.5% on a GAAP basis and 30.5% on a non-GAAP basis, from 26.2% and 30.3%, respectively, in the preceding quarter, primarily as the result of higher revenue levels.
GAAP operating income (loss) increased $5.3 million to $54,000, or 0.0 % of revenues, compared to an operating loss of $(5.2) million, or (2.4)% of revenues, in the preceding quarter.
Non-GAAP operating income increased $3.8 million to $15.8 million, or 6.8% of revenues, compared to $12.0 million, or 5.4% of revenues, in the preceding quarter as the Company was able to hold operating expenses relatively flat, in spite of the impact of a full quarter of operating expenses from the operation of the Company's RED-C subsidiary which we acquired during the first quarter.
Non-GAAP EBITDA increased $3.9 million to $28.7 million, or 12.4% of revenues, compared to $24.9 million, or 11.3% of revenues, in the preceding quarter.
Balance Sheet Highlights for the second quarter of fiscal 2013:
Cash and cash equivalents totaled $262.4 million at the end of the second quarter, compared to $220.5 million at the end of the preceding quarter.
At the end of the second quarter, Finisar had approximately $40.0 million in principal amount of convertible notes outstanding with a conversion price of $10.675 per share.
OUTLOOK
The Company currently expects revenues for the third quarter of fiscal 2013 to be in the range of $230 to $245 million; GAAP operating margin to in the range of approximately 0.0% to 1.5%; non-GAAP operating margin to be in the range of approximately 6.5% to 8.0%; and non-GAAP earnings per diluted share to be in the range of approximately $0.14 to $0.18.
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