9 February 2010


Finisar’s better-than-expected December-quarter revenue up 14% to a record $166–167m

Finisar Corp of Sunnyvale, CA, USA, which makes fiber-optic communications components and subsystems as well as network test & measurement systems, says that, on the basis of preliminary financial results (subject to adjustment) for its fiscal third-quarter 2010 (ended 31 January) it expects to report revenue of $166–167m. This exceeds far guidance of $148–158m provided early in the quarter. Also, based on the mid-point of the new expected range, revenue is up 14.3% on the prior quarter's $145.7m and up 32.1% on $126.1m a year ago.

In the absence of a material adjustment, this will also surpass the previous record of about $163m for the combined revenues of Finisar and optical subsystem maker Optium Corp of Horsham, PA, USA for the fiscal quarter to end-July 2008, just prior to the merger of the two firms on 29 August 2008.

Finisar says that quarter-to-quarter evenue growth was mainly a result of increased sales of products for 10Gb/s and reconfigurable optical add-drop multiplexer (ROADM) applications, although revenue in almost every product category increased sequentially.

Based on the higher preliminary revenue for fiscal Q3/2010, Finisar expects to be at the upper end of its original guidance for non-GAAP gross margin of 30–32% (up from 29.6% last quarter) and operating margin of 6–8% (compared to 6.1% last quarter). A complete assessment of cost of revenues and operating expenses is not yet available but, based on past experience, Finisar expects GAAP results to include $8–10m in additional non-cash and infrequently occurring charges.

Finisar will issue final results for its fiscal third-quarter 2010 on 3 March.

See related items:

Finisar’s capacity constraints suppress profit margin despite upturn

Finisar’s revenue grows 20%, driven by 10-40Gb/s applications

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