Nice to see they are making money (not a lot yet) again and the outlook for the next quarter is even better.
investor.finisar.com
March 5, 2015
Finisar Announces Third Quarter Revenues of $306.3 Million, 3.1% Growth Over Prior Quarter
SUNNYVALE, CA -- (Marketwired) -- 03/05/15 --
Finisar Corporation (NASDAQ: FNSR), a global technology leader for subsystems and components for fiber optic communications, today announced financial results for its third quarter of fiscal 2015, ended January 25, 2015.
COMMENTARY
"Revenues for our third fiscal quarter were $306.3 million, an increase of $9.3 million compared to the prior quarter," said Jerry Rawls,Finisar's executive Chairman of the Board. "Revenue growth was primarily driven by the demand for 40 gigabit and 100 gigabit transceivers for datacom applications, as well as transceivers for wireless applications."
"Although our gross margins declined primarily as a result of our annual telecom price reductions and low yields on a new optical engine product, we significantly decreased our operating expenses resulting in a minimal impact to our earnings," said Eitan Gertel, Finisar'sChief Executive Officer.
| | | | FINANCIAL HIGHLIGHTS - THIRD QUARTER ENDED JANUARY 25, 2015 | | | | | | Summary GAAP Results | | Third | | | Second | | | | | Quarter | | | Quarter | | | | | Ended | | | Ended | | | | | January 25, 2015 | | | October 26, 2014 | | | | | (in thousands, except per share amounts) | | | | | | | | | | | | | Revenues | | $ | 306,283 | | | $ | 296,981 | | | Gross margin | | | 25.5 | % | | | 28.6 | % | | Operating expenses | | $ | 74,552 | | | $ | 92,180 | | | Operating income (loss) | | $ | 3,401 | | | $ | (7,259 | ) | | Operating margin | | | 1.1 | % | | | (2.4 | )% | | Net income (loss) | | $ | 1,678 | | | $ | (11,361 | ) | | Income per share-basic | | $ | 0.02 | | | $ | (0.11 | ) | | Income per share-diluted | | $ | 0.02 | | | $ | (0.11 | ) | | | | | | | | | | | | Basic shares | | | 103,563 | | | | 99,621 | | | Diluted shares | | | 105,990 | | | | 99,621 | | | | | | | | | | | | | Summary Non-GAAP Results (a) | | Third | | | Second | | | | | Quarter | | | Quarter | | | | | Ended | | | Ended | | | | | January 25, 2015 | | | October 26, 2014 | | | | | (in thousands, except per share amounts) | | | | | | | | | | | Revenues | | $ | 306,283 | | | $ | 296,981 | | | Gross margin | | | 30.0 | % | | | 31.1 | % | | Operating expenses | | $ | 65,128 | | | $ | 67,306 | | | Operating income | | $ | 26,852 | | | $ | 24,984 | | | Operating margin | | | 8.8 | % | | | 8.4 | % | | Net income | | $ | 26,706 | | | $ | 23,465 | | | Income per share-basic | | $ | 0.26 | | | $ | 0.24 | | | Income per share-diluted | | $ | 0.25 | | | $ | 0.23 | | | | | | | | | | | | | Basic shares | | | 103,563 | | | | 99,621 | | | Diluted shares | | | 105,990 | | | | 105,340 | | | | | | | | | | | |
| (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. | | | |
Financial Statement Highlights for the Third Quarter of Fiscal 2015:
Revenues increased to $306.3 million, up $9.3 million, or 3.1%, from $297.0 million in the preceding quarter.
Sales of products for datacom applications increased by $18.5 million, or 8.5%, compared to the preceding quarter, primarily driven by the demand for 40 gigabit and 100 gigabit transceivers for datacom applications, as well as transceivers for wireless applications.
Sales of products for telecom applications decreased by $9.2 million, or 11.3%, compared to the preceding quarter, primarily due to the impact of one month of the annual telecom price reduction that typically takes effect on January 1 and the decrease in demand for transceivers for telecom applications driven by sluggish carrier capital expenditures.
GAAP gross margin decreased to 25.5% from 28.6% in the preceding quarter, primarily driven by a $5.7 million non-cash charge for the impairment of long-lived assets.
Non-GAAP gross margin decreased to 30.0% from 31.1% in the preceding quarter primarily due to the impact of one month of the annual telecom price reduction that typically takes effect on January 1 and the impact of substantial yield loss for a new optical engine product for supercomputing applications that we started to ramp in production during the quarter.
GAAP operating expenses decreased $17.6 million to $74.6 million from $92.2 million in the preceding quarter, primarily from expense reduction related to resolving patent infringement litigation that occurred in the preceding quarter.
Non-GAAP operating expenses decreased $2.2 million to $65.1 million from $67.3 million in the preceding quarter.
GAAP operating income increased $10.7 million, to $3.4 million or 1.1% of revenues, compared to an operating loss of $7.3 million or (2.4)% of revenues in the preceding quarter, primarily as the result of higher revenues and lower operating expenses.
Non-GAAP operating income increased $1.9 million to $26.9 million, or 8.8% of revenues, compared to $25.0 million, or 8.4% of revenues, in the preceding quarter, primarily as the result of higher revenue and lower operating expenses.
Cash, cash equivalents and short term investments increased $11.4 million to $488.9 million at the end of the third quarter, compared to $477.4 million at the end of the preceding quarter.OUTLOOK
The Company indicated that for the fourth quarter of fiscal 2015 it currently expects revenues in the range of $310 to $330 million, non-GAAP gross margin of approximately 30%, non-GAAP operating margin of approximately 8% to 9%, and non-GAAP earnings per diluted share in the range of approximately $0.22 to $0.28. Please note that the fourth quarter fiscal 2015 will have 14 weeks compared to 13 weeks in the preceding quarter. However, the positive benefit to revenue of the extra week will be partially offset by the impact ofChinese New Year which occurred in February. In addition, operating expenses are expected to increase primarily due to the extra week relative to the preceding quarter. |
