Finisar 3Q Profit More Than Triples; 4Q Forecast Weak

Date : 03/08/2011 @ 5:34PM
Source : Dow Jones News
Stock : Viavi Solutions Inc. (VIAV)
Quote : 9.05  0.0 (0.00%) @ 4:00AM

Finisar 3Q Profit More Than Triples; 4Q Forecast Weak

Finisar Corp. (NASDAQ:FNSR)
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Finisar Corp.'s (FNSR) fiscal third-quarter earnings more than tripled, and adjusted results were in line with company estimates, as it benefited from sharply higher sales.

The company also forecast current-quarter earnings of 31 cents to 35 cents a share on revenue of $235 million to $250 million. Analysts surveyed by Thomson Reuters expect 48 cents on $269 million.

The weak forecast comes as Finisar said its fourth-quarter results will be impacted by price negotiations with its telecom customers that usually take effect Jan. 1, as well as a 10-day-long shutdown at certain customers for Chinese New Year in February and inventory adjustments.

Shares of Finisar were halted after hours, but chief competitor Uniphase Corp. (JDSU) shares plunged 14% to $21.85 in after-hours action. Another optical company, Oclaro Inc. (OCLR), saw shares drop 13% to $14.50 after hours.

The second-biggest fiber-optic equipment maker behind JDS has seen its results improve of late as revenue has surveyed amid what the company has called a "very strong" market environment. The company also has boosted its margins in recent quarters.

For the quarter ended Jan. 30, Finisar reported a profit of $18.8 million, or 22 cents a share, up from $5.5 million, or 8 cents, a year earlier. Excluding items such as stock compensation, debt conversion expense and a litigation settlement, earnings were 47 cents, up from 17 cents. Revenue jumped 58% to $263 million.

The company in December had forecast earnings of 45 cents to 47 cents on revenue of $247 million to $262 million, above analysts' views at the time.

Gross margin rose to 32% from 31%.

Finisar shares closed at $40.04 and have more than tripled in value in the past year.


-By Nathan Becker, Dow Jones Newswires; 212-416-2855;;


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