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Finisar Corporation (NASDAQ:FNSR) swung to a loss in the first quarter, missing analysts’ forecast. 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: Reported a loss of $6.2 million (7 cents per diluted share) in the quarter. Finisar Corporation had a net income of $10.1 million or 11 cents per share in the year-earlier quarter.
Revenue: Fell 3.4% to $220.5 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. It fell short of the average revenue estimate of $242.6 million.
Quoting Management: “As expected, our first quarter of fiscal year 2013 was challenging. This was primarily the result of sluggish macroeconomic conditions, especially in Europe, as well as the slowing of economic growth in China. Generally telecom spending throughout the world has been soft. In addition, we had two fewer shipping days in the first quarter than in the previous quarter,” said Jerry Rawls, Finisar’s executive Chairman of the Board. “However, I am happy to report that we expect revenue growth to resume in the second quarter. In addition, we expect to hold operating expenses relatively flat, excluding the impact of a full quarter of the RED-C acquisition. Thus, we expect operating income will grow in the second quarter.”
The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $18 million in the fourth quarter of the last fiscal year, a profit of $8.9 million in the third quarter of the last fiscal year and $5.9 million in the second of the last fiscal year.
The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 17 cents.
Revenue fell last quarter after increasing in the previous quarter. Revenue rose 1.3% to $239.9 million in the fourth quarter of the last fiscal year from the year earlier.
Looking Forward: The average estimate for the second quarter remains unchanged at 21 cents a share. For the fiscal year, the average estimate has been unchanged at 64 cents a share.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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