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9 November 2007


Finisar’s revenues dip due to 10/40Gbps shipment glitches

For its fiscal second-quarter 2008 (ended 28 October 2007), fiber-optic component and subsystem maker Finisar Corp of Sunnyvale, CA, USA says that, on the basis of preliminary financial results, it expects revenues of about $101m (down from $105.7m last quarter and $108.2m a year ago). This is further below the low end of its earlier guidance of $106m. However, revenue was negatively impacted by about $6m due partly to the following factors:

  • revenues for 10/40Gbps applications of $18m being flat on last quarter due to: firmware changes requested for the recently qualified 10Gbps X2-SR transceiver reducing shipments (resolved by the end of the quarter); test setup changes needed for 40Gbps transponders limiting shipment capacity (resolved shortly after the end of the quarter); supplier issues that limited production levels for 10Gbps 40/80km XFP transceivers;
  • excess inventory of SAN (storage-area network) transceivers at a large customer limiting shipments.

However, due to an improvement in yields associated with ramping production of several new products, Finisar expects non-GAAP gross margins of 35-36%, about the same as last quarter.

Finisar has deferred its revenue guidance for fiscal second-half 2008 until its next quarterly conference call on 5 December. However, it reiterates that sequential revenue growth should resume in the fiscal third and fourth quarters as a result of:

  • increased shipments of 10/40Gbps products due to resolution of the firmware and test setup issues;
  • resolution of capacity constraints for 40/80km 10Gbps XFP transceivers;
  • qualification of 40Gbps transponders at several customers;
  • increased shipments of SFP+ transceivers for 8/10Gbps LAN and SAN applications;
  • qualification of an XFP-SR product for 10Gbps applications at several customers;
  • design wins for GPON (Gigabit passive optical network) and 10/40Gbps products at a large telecom customer for shipment in calendar-year 2008.

See related items:

First FP-based optical components for 10GBASE-LRM applications

Finisar receives Nasdaq staff determination notice for last fiscal year

Finisar’s record year tempered by last-quarter

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