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Finisar Corporation (NASDAQ:FNSR) posted lower net income in the second quarter compared with a year-earlier period. Finisar is a provider of optical subsystems and components that connect short-distance local area networks, or LANs, and storage area networks, or SANs, and longer distance metropolitan area networks, or MANs and wide area networks, or WANs.
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Finisar Corporation Earnings Cheat Sheet
Results: Net income for Finisar Corporation fell to $271,000 (0 cents per share) vs. $5.9 million (7 cents per share) a year earlier. This is a decline of 95.4% from the year-earlier quarter.
Revenue: Fell 3.9% to $232 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Finisar Corporation reported adjusted net income of 15 cents per share. By that measure, the company beat the mean estimate of 6 cents per share. It fell short of the average revenue estimate of $242.6 million.
Quoting Management: “I am pleased to report fiscal second quarter revenues of $232.0 million, which is $11.5 million, or 5.2%, greater than the prior quarter. Our growth in revenues came primarily from sales of tunable XFP transceivers and wavelength selective switches, including ROADM line cards,” said Jerry Rawls, Finisar’s executive Chairman of the Board. “In addition, operating income increased at a faster rate than revenues because we were able to hold operating expenses relatively flat. This was accomplished in spite of the impact of a full quarter of operating expenses from operation of our RED-C subsidiary, which we acquired during the first quarter.”
The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 2 cents versus a mean estimate of net income of 9 cents per share.
Revenue has declined for two quarters in a row. In the first quarter, revenue declined 3.4% to $220.5 million from the year-earlier quarter.
After sitting in the red the quarter before, the company reported a profit last quarter. The company booked a net loss of $18 million, or 19 cents per share, in the fourth quarter of the last fiscal year.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 14 cents a share to 10 cents over the last ninety days. The average estimate for the fiscal year is 28 cents per share, down from 37 cents ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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