Finisar Earnings: Keeps the Profitability Streak Alive Amidst Mixed Picture
Finisar Corporation (NASDAQ:FNSR) reported its results for the fourth quarter. 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 $12.5 million (14 cents per share) vs. $16.4 million (9 cents per share) a year earlier. This is a decline of 23.6% from the year-earlier quarter.
Revenue: Rose 1.3% to $239.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Finisar Corporation fell short of the mean analyst estimate of 16 cents per share. Analysts were expecting revenue of $242.6 million.
Quoting Management: “In our just completed fiscal fourth quarter, our revenues were $239.9 million. Continued strength in datacom revenues were offset by lower telecom revenues. The lower telecom revenues were primarily the result of sluggish carrier capital expenditures and the full three month impact of annual price reductions for telecom products. We were pleased that our gross margin for the quarter exceeded our guidance, resulting in earnings per diluted share which was at the upper end of our guidance range,” said Jerry Rawls, Finisar’s executive Chairman of the Board.
The company has now seen net income fall for four straight quarters. In the third quarter, net income fell 52.7% while the figure fell 82.5% in the second quarter and 47% in the first quarter.
The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 17 cents.
Revenue rose last quarter after seeing a drop the quarter before. Revenue fell 7.6% to $243 million in the third quarter from the year earlier.
Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 21 cents. The average estimate hasn’t changed from 64 cents per share for the fiscal year.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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