earnings...still a 5 billion dollar company with low sales totals...great growth, especially in the optical group.
Finisar Corporation Announces FinancialResults for Third Quarter of Fiscal Year 2000
February 22, 2000 04:17 PM
SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 22, 2000--Finisar Corporation FNSR , a leading provider of gigabit fiber optic solutions for high-speed data networks, today reported financial results for the third quarter ended January 30, 2000.
Revenues for the third quarter of fiscal 2000 were a record $16.5 million, an 84% increase from $9.0 million in the prior year third quarter. Sales of optical subsystems accounted for $10.9 million in revenues, a 107% increase from $5.3 million in the comparable prior year period. Sales of test instruments were $5.6 million, a 51% increase from $3.7 million in the prior year period.
Pro forma net income for the third quarter was a record $2.1 million, or $.04 per diluted share, an increase of 189% from $734,000, or $.02 per diluted share, for the prior year period and compares to $1.3 million, or $.03 per diluted share in the previous quarter. This pro-forma net income excludes a non-cash charge for the amortization of deferred compensation from stock options granted to employees and directors prior to the Company's recent IPO. Actual net income for the third quarter including the amortization of deferred compensation was $343,000, or $.01 per diluted share, compared to $614,000, or $.01 per diluted share, for the prior year period.
Revenues of $46.5 million for the first nine months of fiscal 2000 increased 100% from $23.2 million in the prior year. Sales of optical subsystems of $31.2 million increased by 131% from $13.5 million in the prior year period. Sales of test instruments of $15.3 million increased by 57% from $9.7 million in the prior year period.
Pro forma net income for the first nine-months of fiscal 2000 totaled $5.0 million, or $.11 per diluted share, an increase of 90% from $2.6 million, or $.06 per diluted share, in the prior year. Actual net income was $1.2 million, or $.03 per diluted share, compared to $2.4 million, or $.06 per diluted share, for the prior year period.
Jerry Rawls, CEO of Finisar, commented, "Not only did Finisar achieve record sales and pro-forma profits in the third quarter, but the company also took some major steps toward greater customer diversification. EMC emerged in the quarter as our largest customer. In addition, several important Fibre Channel and Gigabit Ethernet equipment builders qualified Finisar as a supplier. The demand for fiber optic products remains strong in these gigabit networking markets."
"Furthermore," added Rawls, "during the quarter we had important technical achievements, product introductions and subsequent product evaluations by key customers in the CATV digital return path market and the Opticity(TM) metropolitan data services market. These markets are significant new growth opportunities for Finisar."
Safe Harbor Under the Private Securities Litigation Reform Act of 1995:
The results of operations for the three and nine-month periods ended January 30, 2000 are not necessarily indicative of the results that may be expected for the full fiscal year ending April 30, 2000, or any other future period. Period-to-period comparisons of results of operations should not be relied upon as indications of future performance. Other risks are detailed in the Company's registration statement on Form S-1 as filed with the Securities and Exchange Commission in conjunction with the Company's initial public offering and in the Company's current Form 10-Q filing.
About Finisar: Finisar Corporation FNSR is a leading provider of fiber optic subsystems and network performance test systems which enable high-speed data communications over Gigabit Ethernet local area networks (LANs), Fibre Channel storage area networks (SANs), metropolitan data network applications (MANs), and CATV. The Company is focused on the application of digital fiber optics to provide a broad line of high-performance, reliable, value-added optical subsystems for networking and storage equipment manufacturers. The Company's operations are located at 1308 Moffett Park Drive, Sunnyvale, CA 94089. For more information, visit the Company's web site at finisar.com.
FINISAR CORPORATION
PRO FORMA CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
February 22, 2000
Three Months Ended Nine Months Ended
January 31, January 31,
------------------ -------------------
2000 1999 2000 1999
-------- -------- -------- --------
Revenues
Optical subsystems $ 10,917 $ 5,271 $ 31,225 $ 13,503
Test equipment 5,593 3,714 15,241 9,678
-------- -------- -------- --------
Total revenues 16,510 8,985 46,466 23,181
Cost of revenues 8,122 4,171 22,252 9,895
-------- -------- -------- --------
Gross profit 8,388 4,814 24,214 13,286
Operating expenses:
Research and development 3,878 1,890 10,051 5,048
Sales and marketing 1,643 1,160 5,080 2,864
General and administrative 974 484 2,597 1,203
-------- -------- -------- --------
Total operating expenses 6,495 3,534 17,728 9,115
Income from operations 1,893 1,280 6,486 4,171
Interest income, net 1,342 (141) 1,169 (131)
Other non-operating
income (expense), net (16) (21) (72) 4
-------- -------- -------- --------
Income before income taxes 3,219 1,118 7,583 4,044
Provision for income taxes 1,095 384 2,583 1,410
-------- -------- -------- --------
Net income $ 2,124 $ 734 $ 5,000 $ 2,634
======== ======== ======== ========
Net income per share
- basic $ 0.05 $ 0.03 $ 0.14 $ 0.07
======== ======== ======== ========
Net income per share
- diluted $ 0.04 $ 0.02 $ 0.11 $ 0.06
======== ======== ======== ========
Shares used in per-share
calculation - basic 45,080 28,585 34,628 36,638
Shares used in per-share
calculation - diluted 51,845 44,105 46,029 42,424
The above pro forma results for the third quarter and nine months
ended January 30, 2000 have been adjusted to exclude the non-cash
charge for the amortization of deferred compensation associated with
the issuance of stock options prior to the Company's initial public
offering in November 1999. Actual results including this charge are
summarized below:
FINISAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
February 22, 2000
Three Months Ended Nine Months Ended
January 31, January 31,
------------------ -------------------
2000 1999 2000 1999
-------- -------- -------- --------
Revenues $ 16,510 $ 8,985 $ 46,466 $ 23,181
Cost of revenues 8,122 4,171 22,252 9,895
-------- -------- -------- --------
Gross profit 8,388 4,814 24,214 13,286
Operating expenses:
Research and development 3,878 1,890 10,051 5,048
Sales and marketing 1,643 1,160 5,080 2,864
General and administrative 974 484 2,597 1,203
Amortization of
deferred compensation 1,781 120 3,791 219
-------- -------- -------- --------
Total operating expenses 8,276 3,654 21,519 9,334
Income from operations 112 1,160 2,695 3,952
Interest income, net 1,342 (141) 1,169 (131)
Other non-operating
income (expense), net (16) (21) (72) 4
-------- -------- -------- --------
Income before income taxes 1,438 998 3,792 3,825
Provision for income taxes 1,095 384 2,583 1,410
-------- -------- -------- --------
Net income $ 343 $ 614 $ 1,209 $ 2,415
======== ======== ======== ========
Net income per share
- basic $ 0.01 $ 0.02 $ 0.03 $ 0.07
======== ======== ======== ========
Net income per share
- diluted $ 0.01 $ 0.01 $ 0.03 $ 0.06
======== ======== ======== ========
Shares used in per-share
calculation - basic 45,080 28,585 34,628 36,638
Shares used in per-share
calculation - diluted 51,845 44,105 46,029 42,424
FINISAR CORPORATION
CONDENSED BALANCE SHEETS
(In thousands)
February 22, 2000
January 31, April 30,
2000 1999
ASSETS unaudited audited
--------- ---------
Cash and short-term investments $ 134,115 $ 5,044
Accounts receivable, net 10,170 6,653
Inventories 15,087 5,236
Income tax receivable 148 --
Deferred income taxes 2,360 1,047
Other current assets 477 197
--------- ---------
Total current assets 162,357 18,177
Property, plant, equipment,
improvements, net 5,885 2,482
Other long-term assets 463 296
--------- ---------
Total assets $ 168,705 $ 20,955
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable 4,248 1,394
Accrued compensation 2,258 1,499
Other accrued liabilities 2,279 1,476
Income taxes payable 1,430 743
Capital lease obligations,
current portion 21 54
--------- ---------
Total current liabilities 10,236 5,166
Notes payable, long-term portion -- 11,015
Capital lease obligations,
long-term portion 22 17
Other long-term liabilities 132 --
Preferred stock -- 26,260
Common stock 194,313 4,304
Deferred stock compensation (11,143) (1,975)
Notes receivable from stockholders (3,696) (1,521)
Unrealized loss on short-term
investments (57) --
Retained earnings (21,102) (22,311)
--------- ---------
Total preferred stock and
stockholders' equity 158,315 4,757
--------- ---------
Total liabilities and
stockholders' equity $ 168,705 $ 20,955
========= =========
CONTACT: Finisar Corporation Steve Workman VP Finance, Chief Financial Officer Shelby Palmer Investor Relations investor.relations@finisar.com 408-548-0948
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