Finisar Corporation (NASDAQ:FNSR), a global technology leader for
subsystems and components for fiber optic communications, today
announced financial results for its second fiscal quarter, ended
October 29, 2017.
COMMENTARY
“We experienced strong demand in our second fiscal quarter for
our 100G QSFP28 transceivers for datacenters,” said Jerry Rawls,
Finisar’s Chief Executive Officer. “However, our overall
revenues for the second fiscal quarter were $332.2 million, a
decrease of $9.6 million, or 2.8%, compared to the first quarter of
fiscal 2018. This decline was primarily due to lower revenues
from our Chinese OEM customers. Also, during the second quarter, we
began shipping production quantities of our VCSEL arrays for 3D
sensing. In addition, after the end of the quarter, we acquired an
approximately 700,000 square foot facility in Sherman, Texas.
In the second half of calendar year 2018, we expect this facility
will allow us to produce VCSEL arrays using 6” wafers for both
consumer and automotive applications.”
FINANCIAL HIGHLIGHTS – Second Quarter Ended
October 29, 2017 |
|
Summary GAAP
Results |
Second |
|
First |
|
Quarter |
|
Quarter |
|
Ended |
|
Ended |
|
October 29, 2017 |
|
July 30, 2017 |
|
(in thousands, except per share
amounts) |
|
|
|
|
Revenues |
$332,205 |
|
$341,806 |
Gross margin |
29.0% |
|
33.7% |
Operating expenses |
$86,738 |
|
$85,387 |
Operating income |
$9,467 |
|
$29,912 |
Operating margin |
2.8% |
|
8.8% |
Net income |
$5,857 |
|
$19,859 |
Income per
share-basic |
$0.05 |
|
$0.18 |
Income per
share-diluted |
$0.05 |
|
$0.17 |
|
|
|
|
Basic shares |
113,960 |
|
112,544 |
Diluted shares |
115,443 |
|
115,698 |
|
|
|
|
Summary Non-GAAP Results (a) |
Second |
|
First |
|
Quarter |
|
Quarter |
|
Ended |
|
Ended |
|
October 29, 2017 |
|
July 30, 2017 |
|
(in thousands, except per share
amounts) |
|
|
|
|
Revenues |
$332,205 |
|
$341,806 |
Non-GAAP Gross
margin |
30.3% |
|
34.9% |
Non-GAAP Operating
expenses |
$74,643 |
|
$73,150 |
Non-GAAP Operating
income |
$25,914 |
|
$46,005 |
Non-GAAP Operating
margin |
7.8% |
|
13.5% |
Non-GAAP Net
income |
26,089 |
|
45,750 |
Non-GAAP Income per
share-basic |
$0.23 |
|
$0.41 |
Non-GAAP Income per
share-diluted |
$0.23 |
|
$0.40 |
|
|
|
|
Basic shares |
113,960 |
|
112,544 |
Diluted shares |
115,443 |
|
115,698 |
_____________
(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 of Finisar’s core ongoing 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
Second Quarter of Fiscal 2018:
- Sales of datacom products decreased by $1.7 million, or (0.7)%,
compared to the first quarter of fiscal 2018, primarily from lower
demand for 10G and below transceivers, 40G QSFP transceivers, and
100G CFP ethernet transceivers. This was partially offset by
an increase in sales of 100G QSFP28 transceivers as well as new
revenues from VCSEL arrays for 3D sensing.
- Sales of telecom products decreased by $7.9 million, or (9.5)%,
compared to the first quarter of fiscal 2018, primarily driven by
lower revenues from our Chinese OEM customers.
- GAAP gross margin was 29.0% compared to 33.7% in the first
quarter of fiscal 2018, primarily due to lower revenue levels,
unfavorable product mix, and under-absorption of manufacturing
costs at our Allen, Texas VCSEL fab. This under-absorption was
primarily due to our shipping production quantities of VCSEL arrays
late in the quarter.
- Non-GAAP gross margin was 30.3% compared to 34.9% in the first
quarter of fiscal 2018.
- GAAP operating margin was 2.8% compared to 8.8% in the first
quarter of fiscal 2018, primarily due to lower revenue levels and
gross margins.
- Non-GAAP operating margin was 7.8% compared to 13.5% in the
first quarter of fiscal 2018.
- GAAP income per fully diluted share was $0.05 compared to $0.17
in the first quarter of fiscal 2018, primarily due to lower revenue
levels and gross margin.
- Non-GAAP income per fully diluted share was $0.23 compared to
$0.40 in the first quarter of fiscal 2018.
OUTLOOK
Finisar indicated that for the third quarter of fiscal 2018 it
currently expects revenues in the range of $325 to $345 million,
non-GAAP gross margin of approximately 30%-31%, non-GAAP operating
margin of approximately 7.5% -8.5%, and non-GAAP earnings per fully
diluted share in the range of approximately $0.21 to $0.27.
Finisar has not provided a reconciliation of its third quarter
outlook for non-GAAP gross margin, non-GAAP operating margin and
non-GAAP earnings per fully diluted share because estimates of all
of the reconciling items cannot be provided without unreasonable
efforts. It is difficult to reasonably provide a
forward-looking estimate of certain reconciling items between such
non-GAAP forward-looking measures and the comparable
forward-looking GAAP measures. Certain factors that are materially
significant to Finisar’s ability to estimate these items are out of
its control and/or cannot be reasonably predicted, including with
respect to restructuring charges, litigation settlements and
resolutions and related costs, and the timing of tax related
adjustments. Accordingly, a reconciliation of such non-GAAP
forward-looking measures to the comparable forward-looking GAAP
measures are not available within a reasonable range of
predictability.
CONFERENCE CALL
Finisar will discuss its financial results for the second
quarter and current business outlook during its regular quarterly
conference call scheduled for Thursday, December 7, 2017, at
2:00 pm PT (5:00 pm ET). To listen to the call you
may connect through the Finisar investor relations page at
http://investor.finisar.com/ or dial 1-(855) 473-9088 (domestic) or
1- (720) 405-0995 (international) and enter conference ID
61569772.
An audio replay will be available for two weeks
following the call by dialing 1- (855) 859-2056 (domestic) or
1-404-537-3406 (international) and then following the prompts:
enter conference ID 61569772and provide your name, affiliation, and
contact number. A replay of the webcast will be available
shortly after the conclusion of the call on Finisar’s website until
the next regularly scheduled earnings conference call.
SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This press release contains forward-looking statement concerning
Finisar’s expected financial performance. These statements are
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. These
forward-looking statements are based on our current expectations,
estimates, assumptions and projections about our business and
industry, and the markets and customers we serve, and they are
subject to numerous risks and uncertainties that may cause these
forward-looking statements to be inaccurate. Finisar assumes no
obligation to update any such forward-looking statements.
Forward-looking statements involve risks and uncertainties which
could cause actual results to differ materially from those
projected. Examples of such risks include those associated
with: the uncertainty of customer demand for Finisar’s
products; the rapidly evolving markets for Finisar’s products and
uncertainty regarding the development of these markets; Finisar’s
historical dependence on sales to a limited number of customers and
fluctuations in the mix of products and customers in any period;
ongoing new product development and introduction of new and
enhanced products; the challenges of rapid growth followed by
periods of contraction; and intensive competition. Further
information regarding these and other risks relating to Finisar’s
business is set forth in Finisar’s annual report on Form 10-K
(filed June 16, 2017) and quarterly SEC filings.
ABOUT FINISAR
Finisar Corporation (NASDAQ:FNSR) is a global technology leader
for fiber optic subsystems and components that enable
high-speed voice, video and data communications for
telecommunications, networking, storage, wireless, and cable TV
applications. For over 25 years, Finisar has provided critical
optics technologies to system manufacturers to meet the increasing
demands for network bandwidth and storage. Finisar is
headquartered in Sunnyvale, California, USA with R&D,
manufacturing sites, and sales offices worldwide. For additional
information, visit www.finisar.com.
FINISAR FINANCIAL STATEMENTS The following
financial tables are presented in accordance with GAAP.
Finisar Corporation |
Consolidated Statements of
Operations |
(Unaudited, in thousands, except per
share data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
Three Months Ended |
|
Oct 29, 2017 |
|
Oct 30, 2016 |
|
Oct 29, 2017 |
|
Oct 30, 2016 |
|
Jul 30, 2017 |
Revenues |
$ |
332,205 |
|
|
$ |
369,863 |
|
|
$ |
674,011 |
|
|
$ |
711,188 |
|
|
$ |
341,806 |
|
Cost of revenues |
|
235,389 |
|
|
|
235,192 |
|
|
|
461,285 |
|
|
|
466,829 |
|
|
|
225,896 |
|
Amortization of
acquired developed technology |
|
611 |
|
|
|
990 |
|
|
|
1,222 |
|
|
|
2,513 |
|
|
|
611 |
|
Gross profit |
|
96,205 |
|
|
|
133,681 |
|
|
|
211,504 |
|
|
|
241,846 |
|
|
|
115,299 |
|
Gross margin |
|
29.0% |
|
|
|
36.1% |
|
|
|
31.4% |
|
|
|
34.0% |
|
|
|
33.7% |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research
and development |
|
60,560 |
|
|
|
53,242 |
|
|
|
118,600 |
|
|
|
104,250 |
|
|
|
58,040 |
|
Sales and
marketing |
|
12,230 |
|
|
|
13,367 |
|
|
|
24,581 |
|
|
|
25,230 |
|
|
|
12,351 |
|
General
and administrative |
|
13,282 |
|
|
|
13,576 |
|
|
|
27,571 |
|
|
|
29,891 |
|
|
|
14,289 |
|
Amortization of purchased intangibles |
|
666 |
|
|
|
668 |
|
|
|
1,373 |
|
|
|
1,336 |
|
|
|
707 |
|
Total
operating expenses |
|
86,738 |
|
|
|
80,853 |
|
|
|
172,125 |
|
|
|
160,707 |
|
|
|
85,387 |
|
Income from
operations |
|
9,467 |
|
|
|
52,828 |
|
|
|
39,379 |
|
|
|
81,139 |
|
|
|
29,912 |
|
Interest income |
|
3,746 |
|
|
|
1,021 |
|
|
|
7,186 |
|
|
|
1,747 |
|
|
|
3,440 |
|
Interest expense |
|
(9,131 |
) |
|
|
(3,025 |
) |
|
|
(18,144 |
) |
|
|
(6,011 |
) |
|
|
(9,013 |
) |
Other expenses |
|
1,111 |
|
|
|
795 |
|
|
|
(1,583 |
) |
|
|
736 |
|
|
|
(2,694 |
) |
Income before income
taxes |
|
5,193 |
|
|
|
51,619 |
|
|
|
26,838 |
|
|
|
77,611 |
|
|
|
21,645 |
|
Provision (benefit) for
income taxes |
|
(664 |
) |
|
|
2,854 |
|
|
|
1,122 |
|
|
|
4,897 |
|
|
|
1,786 |
|
Net income |
$ |
5,857 |
|
|
$ |
48,765 |
|
|
$ |
25,716 |
|
|
$ |
72,714 |
|
|
$ |
19,859 |
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to Finisar Corporation common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.05 |
|
|
$ |
0.44 |
|
|
$ |
0.23 |
|
|
$ |
0.66 |
|
|
$ |
0.18 |
|
Diluted |
$ |
0.05 |
|
|
$ |
0.43 |
|
|
$ |
0.22 |
|
|
$ |
0.65 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing net income per share - basic |
|
113,960 |
|
|
|
110,407 |
|
|
|
113,252 |
|
|
|
109,614 |
|
|
|
112,544 |
|
Shares used in
computing net income per share - diluted |
|
115,443 |
|
|
|
113,192 |
|
|
|
115,973 |
|
|
|
112,450 |
|
|
|
115,698 |
|
|
|
|
|
|
|
|
|
|
|
Finisar Corporation |
Consolidated Balance Sheets |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
Oct 29, 2017 |
|
Jul 30, 2017 |
|
Apr 30, 2017 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
274,547 |
|
|
$ |
278,826 |
|
|
$ |
260,228 |
|
|
Short-term held-to-maturity investments |
|
|
958,216 |
|
|
|
954,026 |
|
|
|
976,595 |
|
|
Accounts
receivable, net |
|
|
260,870 |
|
|
|
273,180 |
|
|
|
272,377 |
|
|
Inventories |
|
|
369,078 |
|
|
|
356,845 |
|
|
|
331,388 |
|
|
Other
current assets |
|
|
61,517 |
|
|
|
63,629 |
|
|
|
68,269 |
|
|
Total
current assets |
|
|
1,924,228 |
|
|
|
1,926,506 |
|
|
|
1,908,857 |
|
|
Property, equipment and
improvements, net |
|
|
443,733 |
|
|
|
420,298 |
|
|
|
383,919 |
|
|
Purchased intangible
assets, net |
|
|
10,424 |
|
|
|
11,700 |
|
|
|
13,019 |
|
|
Goodwill |
|
|
106,735 |
|
|
|
106,735 |
|
|
|
106,735 |
|
|
Minority
investments |
|
|
606 |
|
|
|
605 |
|
|
|
3,161 |
|
|
Other assets |
|
|
20,818 |
|
|
|
21,651 |
|
|
|
16,964 |
|
|
Deferred tax
assets |
|
|
116,055 |
|
|
|
108,567 |
|
|
|
107,225 |
|
|
Total
assets |
|
$ |
2,622,599 |
|
|
$ |
2,596,062 |
|
|
$ |
2,539,880 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
152,047 |
|
|
$ |
148,605 |
|
|
$ |
140,568 |
|
|
Accrued
compensation |
|
|
36,614 |
|
|
|
42,030 |
|
|
|
54,520 |
|
|
Other
accrued liabilities |
|
|
40,130 |
|
|
|
46,648 |
|
|
|
43,697 |
|
|
Deferred
revenue |
|
|
17,716 |
|
|
|
14,348 |
|
|
|
13,015 |
|
|
Total
current liabilities |
|
|
246,507 |
|
|
|
251,631 |
|
|
|
251,800 |
|
|
Long-term
liabilities: |
|
|
|
|
|
|
|
Convertible notes |
|
|
723,784 |
|
|
|
715,722 |
|
|
|
707,782 |
|
|
Other
non-current liabilities |
|
|
17,176 |
|
|
|
17,546 |
|
|
|
17,594 |
|
|
Total
liabilities |
|
|
987,467 |
|
|
|
984,899 |
|
|
|
977,176 |
|
|
Stockholders'
equity: |
|
|
|
|
|
|
|
Common
stock |
|
|
114 |
|
|
|
114 |
|
|
|
112 |
|
|
Additional paid-in capital |
|
|
2,814,713 |
|
|
|
2,799,118 |
|
|
|
2,784,204 |
|
|
Accumulated other comprehensive income (loss) |
|
|
(41,664 |
) |
|
|
(44,181 |
) |
|
|
(57,865 |
) |
|
Accumulated deficit |
|
|
(1,138,031 |
) |
|
|
(1,143,888 |
) |
|
|
(1,163,747 |
) |
|
Total
stockholders' equity |
|
|
1,635,132 |
|
|
|
1,611,163 |
|
|
|
1,562,704 |
|
|
Total liabilities and
stockholders' equity |
|
$ |
2,622,599 |
|
|
$ |
2,596,062 |
|
|
$ |
2,539,880 |
|
|
|
|
|
|
|
|
|
|
Note - Balance sheet amounts as of April 30, 2017 are derived
from the audited consolidated financial statements as of the
date. |
|
|
|
|
|
|
|
|
|
FINISAR NON-GAAP FINANCIAL MEASURES
In addition to reporting financial results in accordance with
U.S. generally accepted accounting principles, or GAAP, Finisar
provides the following financial measures defined as non-GAAP
financial measures by the Securities and Exchange Commission:
non-GAAP gross profit, non-GAAP operating income, non-GAAP income
and non-GAAP net income per share. These non-GAAP financial
measures are supplemental information regarding Finisar’s operating
performance on a non-GAAP basis that excludes certain gains, losses
and charges of a non-cash nature or that occur relatively
infrequently and/or that management considers to be outside of our
ongoing core operating results. Management believes
that tracking non-GAAP gross profit, non-GAAP operating income,
non-GAAP net income and non-GAAP net income per share provides
management and the investment community with valuable insight into
our ongoing core current operations, our ability to generate cash
and the underlying business trends that are affecting our
performance. These non-GAAP measures are used by both
management and our Board of Directors, along with the comparable
GAAP information, in evaluating our current performance and
planning our future business activities. In particular,
management finds it useful to exclude non-cash charges in order to
better correlate our operating activities with our ability to
generate cash from operations and to exclude certain cash charges
as a means of more accurately predicting our liquidity
requirements. We believe that these non-GAAP measures, when
used in conjunction with our GAAP financial information, also allow
investors to better evaluate our financial performance in
comparison to other periods and to other companies in our
industry.
In calculating non-GAAP gross profit in this release, we have
excluded the following items from cost of revenues in applicable
periods in this release:
- Amortization of acquired technology (non-cash charges related
to technology obtained in acquisitions);
- Duplicate facility costs during facility move (non-core cash
charges);
- Stock-based compensation expense (non-cash charges);
- Reduction in force costs (non-core cash charges); and
- Acquisition related retention payments (non-core cash
charges).
In calculating non-GAAP operating income in this release, we
have excluded the same items to the extent they are classified as
operating expenses, and have also excluded the following items in
applicable periods in this release:
- Litigation settlements and resolutions and related costs
(non-core charges);
- Acquisition related costs (non-core cash charge) and
- Amortization of purchased intangibles (non-cash charges).
In calculating non-GAAP income and non-GAAP income per share in
this release, we have also excluded the following items in
applicable periods in this release:
- Imputed interest expenses on convertible debt (non-cash
charges);
- Imputed interest related to restructuring (non-cash
charges);
- Gains and losses on sales of assets (non-cash losses and cash
gains related to the periodic disposal of assets no longer required
for current activities);
- Loss (gain) related to minority investment (non-core charges or
benefits);
- Dollar denominated foreign exchange transaction losses (gains)
(non-cash charges or benefits); and
- Amortization of debt issuance costs (non-cash charges).
In addition, in this release we have adjusted non-GAAP income
and non-GAAP income per share for the difference between GAAP
income taxes and non-GAAP income.
A reconciliation of this non-GAAP financial information to the
corresponding GAAP information is set forth below:
Finisar Corporation |
Reconciliation of Results of Operations under
GAAP and non-GAAP |
(Unaudited, in thousands, except per
share data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
Three Months Ended |
|
Oct 29, 2017 |
|
Oct 30, 2016 |
|
Oct 29, 2017 |
|
Oct 30, 2016 |
|
Jul 30, 2017 |
GAAP to
non-GAAP reconciliation of gross profit: |
|
|
|
|
|
|
|
|
|
Gross profit -
GAAP |
$ |
96,205 |
|
|
$ |
133,681 |
|
|
$ |
211,504 |
|
|
$ |
241,846 |
|
|
$ |
115,299 |
|
Gross margin -
GAAP |
|
29.0% |
|
|
|
36.1% |
|
|
|
31.4% |
|
|
|
34.0% |
|
|
|
33.7% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
Amortization of acquired technology |
|
611 |
|
|
|
990 |
|
|
|
1,222 |
|
|
|
2,513 |
|
|
|
611 |
|
Duplicate
facility costs during facility move |
|
- |
|
|
|
8 |
|
|
|
- |
|
|
|
16 |
|
|
|
- |
|
Stock
compensation |
|
3,724 |
|
|
|
2,949 |
|
|
|
6,294 |
|
|
|
5,996 |
|
|
|
2,570 |
|
Reduction
in force costs |
|
(9 |
) |
|
|
14 |
|
|
|
625 |
|
|
|
116 |
|
|
|
634 |
|
Acquisition related retention payment |
|
26 |
|
|
|
26 |
|
|
|
67 |
|
|
|
45 |
|
|
|
41 |
|
Total
cost of revenue adjustments |
|
4,352 |
|
|
|
3,987 |
|
|
|
8,208 |
|
|
|
8,686 |
|
|
|
3,856 |
|
Gross profit -
non-GAAP |
|
100,557 |
|
|
|
137,668 |
|
|
|
219,712 |
|
|
|
250,532 |
|
|
|
119,155 |
|
Gross margin -
non-GAAP |
|
30.3% |
|
|
|
37.2% |
|
|
|
32.6% |
|
|
|
35.2% |
|
|
|
34.9% |
|
|
|
|
|
|
|
|
|
|
|
GAAP to
non-GAAP reconciliation of operating income: |
|
|
|
|
|
|
|
|
|
Operating income -
GAAP |
|
9,467 |
|
|
|
52,828 |
|
|
|
39,379 |
|
|
|
81,139 |
|
|
|
29,912 |
|
Operating margin -
GAAP |
|
2.8% |
|
|
|
14.3% |
|
|
|
5.8% |
|
|
|
11.4% |
|
|
|
8.8% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Total cost of revenue
adjustments |
|
4,352 |
|
|
|
3,987 |
|
|
|
8,208 |
|
|
|
8,686 |
|
|
|
3,856 |
|
Total operating expense
adjustments |
|
|
|
|
|
|
|
|
|
Operating
expenses - GAAP |
|
86,738 |
|
|
|
80,853 |
|
|
|
172,125 |
|
|
|
160,707 |
|
|
|
85,387 |
|
Research
and development |
|
|
|
|
|
|
|
|
|
Reduction
in force costs |
|
22 |
|
|
|
88 |
|
|
|
115 |
|
|
|
262 |
|
|
|
93 |
|
Duplicate
facility costs during facility move |
|
- |
|
|
|
7 |
|
|
|
- |
|
|
|
14 |
|
|
|
- |
|
Acquisition related retention payment |
|
32 |
|
|
|
32 |
|
|
|
64 |
|
|
|
64 |
|
|
|
32 |
|
Stock
compensation |
|
6,147 |
|
|
|
5,552 |
|
|
|
12,229 |
|
|
|
10,663 |
|
|
|
6,082 |
|
Sales and
marketing |
|
|
|
|
|
|
|
|
|
Reduction
in force costs |
|
- |
|
|
|
- |
|
|
|
(12 |
) |
|
|
29 |
|
|
|
(12 |
) |
Acquisition related retention payment |
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
|
- |
|
|
|
(2 |
) |
Stock
compensation |
|
2,039 |
|
|
|
1,877 |
|
|
|
4,083 |
|
|
|
3,628 |
|
|
|
2,044 |
|
General
and administrative |
|
|
|
|
|
|
|
|
|
Reduction
in force costs |
|
13 |
|
|
|
20 |
|
|
|
50 |
|
|
|
33 |
|
|
|
37 |
|
Duplicate
facility costs during facility move |
|
137 |
|
|
|
154 |
|
|
|
320 |
|
|
|
297 |
|
|
|
183 |
|
Acquisition related retention payment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
|
- |
|
Stock
compensation |
|
2,999 |
|
|
|
2,989 |
|
|
|
6,068 |
|
|
|
5,542 |
|
|
|
3,069 |
|
Acquisition related costs |
|
40 |
|
|
|
2 |
|
|
|
44 |
|
|
|
33 |
|
|
|
4 |
|
Litigation settlements and resolutions and related costs |
|
- |
|
|
|
46 |
|
|
|
- |
|
|
|
46 |
|
|
|
- |
|
Amortization of purchased intangibles |
|
666 |
|
|
|
668 |
|
|
|
1,373 |
|
|
|
1,336 |
|
|
|
707 |
|
Total
operating expense adjustments |
|
12,095 |
|
|
|
11,435 |
|
|
|
24,332 |
|
|
|
21,945 |
|
|
|
12,237 |
|
Operating
expenses - non-GAAP |
|
74,643 |
|
|
|
69,418 |
|
|
|
147,793 |
|
|
|
138,762 |
|
|
|
73,150 |
|
Operating income -
non-GAAP |
|
25,914 |
|
|
|
68,250 |
|
|
|
71,919 |
|
|
|
111,770 |
|
|
|
46,005 |
|
Operating margin -
non-GAAP |
|
7.8% |
|
|
|
18.5% |
|
|
|
10.7% |
|
|
|
15.7% |
|
|
|
13.5% |
|
|
|
|
|
|
|
|
|
|
|
GAAP to
non-GAAP reconciliation of income before income
taxes: |
|
|
|
|
|
|
|
|
|
Income before income
taxes - GAAP |
|
5,193 |
|
|
|
51,619 |
|
|
|
26,838 |
|
|
|
77,611 |
|
|
|
21,645 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Total cost of revenue
adjustments |
|
4,352 |
|
|
|
3,987 |
|
|
|
8,208 |
|
|
|
8,686 |
|
|
|
3,856 |
|
Total operating expense
adjustments |
|
12,095 |
|
|
|
11,435 |
|
|
|
24,332 |
|
|
|
21,945 |
|
|
|
12,237 |
|
Non-cash imputed
interest expenses on convertible debt |
|
7,676 |
|
|
|
2,509 |
|
|
|
15,231 |
|
|
|
4,978 |
|
|
|
7,555 |
|
Imputed interest
related to restructuring |
|
28 |
|
|
|
37 |
|
|
|
58 |
|
|
|
75 |
|
|
|
30 |
|
Other (income) expense,
net |
|
|
|
|
|
|
|
|
|
Loss
(gain) on assets |
|
38 |
|
|
|
(17 |
) |
|
|
(79 |
) |
|
|
(25 |
) |
|
|
(117 |
) |
Loss
related to impairment of minority investments |
|
- |
|
|
|
- |
|
|
|
2,347 |
|
|
|
- |
|
|
|
2,347 |
|
Foreign
exchange transaction (gain) or loss |
|
(1,478 |
) |
|
|
(970 |
) |
|
|
(1,016 |
) |
|
|
(999 |
) |
|
|
463 |
|
Amortization of debt issuance cost |
|
385 |
|
|
|
154 |
|
|
|
770 |
|
|
|
308 |
|
|
|
385 |
|
Total
Interest and other adjustments |
|
6,649 |
|
|
|
1,713 |
|
|
|
17,311 |
|
|
|
4,337 |
|
|
|
10,663 |
|
Income before income
taxes - non-GAAP |
|
28,289 |
|
|
|
68,754 |
|
|
|
76,689 |
|
|
|
112,579 |
|
|
|
48,401 |
|
|
|
|
|
|
|
|
|
|
|
GAAP to
non-GAAP reconciliation of net income: |
|
|
|
|
|
|
|
|
|
Net income - GAAP |
|
5,857 |
|
|
|
48,765 |
|
|
|
25,716 |
|
|
|
72,714 |
|
|
|
19,859 |
|
Total cost of revenue
adjustments |
|
4,352 |
|
|
|
3,987 |
|
|
|
8,208 |
|
|
|
8,686 |
|
|
|
3,856 |
|
Total operating expense
adjustments |
|
12,095 |
|
|
|
11,435 |
|
|
|
24,332 |
|
|
|
21,945 |
|
|
|
12,237 |
|
Total Interest and
other adjustments |
|
6,649 |
|
|
|
1,713 |
|
|
|
17,311 |
|
|
|
4,337 |
|
|
|
10,663 |
|
Income tax provision
adjustments |
|
(2,864 |
) |
|
|
(746 |
) |
|
|
(3,728 |
) |
|
|
(703 |
) |
|
|
(865 |
) |
Total
adjustments |
|
20,232 |
|
|
|
16,389 |
|
|
|
46,123 |
|
|
|
34,265 |
|
|
|
25,891 |
|
Net income -
non-GAAP |
$ |
26,089 |
|
|
$ |
65,154 |
|
|
$ |
71,839 |
|
|
$ |
106,979 |
|
|
$ |
45,750 |
|
|
|
|
|
|
|
|
|
|
|
Basic non-GAAP
income per share |
|
|
|
|
|
|
|
|
|
GAAP
earnings per share |
$ |
0.05 |
|
|
$ |
0.44 |
|
|
$ |
0.23 |
|
|
$ |
0.66 |
|
|
$ |
0.18 |
|
Impact of
all non-GAAP adjustments |
$ |
0.18 |
|
|
$ |
0.15 |
|
|
$ |
0.40 |
|
|
$ |
0.32 |
|
|
$ |
0.23 |
|
Non-GAAP
earnings per share |
$ |
0.23 |
|
|
$ |
0.59 |
|
|
$ |
0.63 |
|
|
$ |
0.98 |
|
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
|
Diluted
non-GAAP income per share |
|
|
|
|
|
|
|
|
|
GAAP
earnings per share |
$ |
0.05 |
|
|
$ |
0.43 |
|
|
$ |
0.22 |
|
|
$ |
0.65 |
|
|
$ |
0.17 |
|
Impact of
all non-GAAP adjustments |
$ |
0.18 |
|
|
$ |
0.15 |
|
|
$ |
0.40 |
|
|
$ |
0.30 |
|
|
$ |
0.23 |
|
Non-GAAP
earnings per share |
$ |
0.23 |
|
|
$ |
0.58 |
|
|
$ |
0.62 |
|
|
$ |
0.95 |
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP income per share |
|
|
|
|
|
|
|
|
|
Basic |
|
113,960 |
|
|
|
110,407 |
|
|
|
113,252 |
|
|
|
109,614 |
|
|
|
112,544 |
|
Diluted |
|
115,443 |
|
|
|
113,192 |
|
|
|
115,973 |
|
|
|
112,450 |
|
|
|
115,698 |
|
Finisar-F
Investor Contact:
Kurt Adzema Chief Financial Officer408-542-5050 or
Investor.relations@finisar.com
Press contact:Victoria McDonaldDirector,
Corporate Communications 408-542-4261
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