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Finisar Reports Prelim Q1
Finisar reports preliminary Q1 results
September 5, 2007
3 Min Read
SUNNYVALE, Calif. -- Finisar Corporation (NASDAQ: FNSR), a technology leader in gigabit fiber optic solutions for high-speed data networks, today reported preliminary financial results for its first fiscal quarter ended July 29, 2007.
The Company is not providing detailed GAAP or non-GAAP financial results for the quarter. The preliminary non-GAAP financial metrics presented below do not reflect any adjustments that may be needed as a result of the previously announced review of the Company's historical stock option grants and associated accounting that remains ongoing at this time. These results should be considered preliminary until such time as the Company files its annual report on Form 10-K for fiscal 2007 and other interim reports on Form 10-Q, including the Form 10-Q for the first quarter just ended.
Non-GAAP Financial Metrics -- First Quarter Ended July 29, 2007
Revenues of $105.7 million represented an 8.7% increase from $97.3 million in the previous quarter and were down slightly from $106.2 million in the comparable quarter of the prior year. The favorable comparison to the previous quarter was primarily related to the transition by two customers to "just-in-time inventory" arrangements which impacted revenues during the previous quarter and the utilization by certain customers of excess inventories of products designed for SAN applications during that quarter.
Revenues of $96.4 million from the sale of optical products represented a 9% increase from $88.4 million in the previous quarter and were up slightly from $96.0 million in the comparable quarter of the prior year. Revenues from the sale of network test and monitoring products of $9.4 million represented a 5.5% increase from $8.9 million in the previous quarter and a decline of 8.1% from $10.0 million in the comparable quarter of the prior year.
Shipments of products designed for 10-40 Gb/s applications totaled $18.2 million, up 22.8% from $14.9 million in the previous quarter and up 218% from $5.8 million in the comparable quarter of the prior year.
Gross margins were lower than the previous quarter primarily as a result of additional costs associated with ramping the introduction of new products and unfavorable manufacturing variances associated with reducing production levels to better match inventories on hand.
Cash and short-term investments, plus other long-term investments which can be readily converted into cash, totaled $121.1 million, down from $123.7 million at the end of last quarter in conjunction with a reduction of $7 million in accounts payable. The Company has classified certain of its investments as long-term based on its intent to hold these securities until maturity, although they can be readily sold if required.
"We were pleased to see revenues bounce back from last quarter as we recovered from a number of customer supply chain and excess inventory issues," said Jerry Rawls, Finisar's CEO. "We are heavily focused on the continued penetration of the telecom equipment market for 10 Gb/s, 40 Gb/s, and WDM products and the LAN/SAN markets for 8 Gb/s and 10 Gb/s products. We continue to invest in R&D in all these emerging market areas as our customers continue to be optimistic about the end-user demand for more bandwidth."
Finisar Corp.0
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