News

11 June 2010

 

Finisar’s quarterly revenue rises 12.9% to record $188.5m

For its fiscal 2010 (to end April), fiber-optic communications component and subsystem maker Finisar Corp of Sunnyvale, CA, USA has reported record revenue of $629.9m, up 26.7% on fiscal 2009’s $497.1m.

Fiscal fourth-quarter revenue was also a record $188.5m, up 75.4% on $107.5m a year ago and up 12.9% on $166.9m last quarter.

Fiscal	Q4/2010	Q3/2010	Q2/2010	Q1/2010
Revenue	$188.5m	$166.9m	$145.7m	$128.7m

Of the $21.6m increase in revenue from last quarter, sales rose $6.6m (9.8%) for products for applications equal to or greater than 10Gbps, $8.6m (11.5%) for applications less than 10Gbps, and $7.7m (40.3%) for reconfigurable optical add-drop multiplexer (ROADM) products, while sales of products for CATV applications fell $1.3m (23.3%).

“Continued strong demand for Finisar products has been driven by growth in IP traffic, demand for mobile bandwidth and the need to upgrade existing networks and build out new wireless backhaul networks,” says executive chairman Jerry Rawls. “Those demands have powered Finisar to record revenue levels,” he adds.

On a non-GAAP basis, gross margin has risen from 27.2% a year ago and 32.2% last quarter to 32.6%, despite annual price reductions for certain telecom customers from 1 January.

Operating expenses have risen from $30.8m a year ago and $39.7m last quarter to $43.2m (with R&D expenses up $2.6m due partly to 100 Gigabit Ethernet product development, and sales & marketing expenses up $769,000 due mainly to the increased revenue).

Despite this, operating income was $18.3m (an operating margin of 9.7% of revenue), up from $14.1m (8.5% of revenue) last quarter and a loss of $1.6m (–1.5% of revenue) a year ago. Net income was $16.7m, compared to $11.5m last quarter and a net loss of $3.4m a year ago.

During the quarter, cash and short-term investments (plus other long-term investments that can be readily converted into cash) rose from $79m to $207m, due mainly to net proceeds of $131.1m from the sale of common stock completed in March (despite the use of $10m to pay down borrowings under a secured credit line with Wells Fargo Foothill LLC). Excluding this, the cash position increased by $6.8m.

For its fiscal first-quarter 2011 (ending 1 August 2010), Finisar expects revenue of $190–205m. Non-GAAP operating margin should be 10–11.5%, meeting the target of 10%.

“While most of our product transfer activities to low-cost off-shore locations were largely complete at the end of the fourth quarter, there are additional merger synergies related to the integration of Finisar components into legacy Optium products to be realized over the next few quarters,” says CEO Eitan Gertel. “As a result, we believe gross margins on a non-GAAP basis can continue to improve as these new engineering designs become qualified by our customers and we realize the expected benefits of anticipated additional revenue growth along with a favorable trend in product mix,” he adds.

“We believe the underlying trends driving our business will continue and that fiscal 2011 will be another record year for us,” concludes Rawls.

See related items:

Finisar grows 32.4% year-on-year

Finisar’s capacity constraints suppress profit margin despite upturn

Finisar’s revenue grows 20%, driven by 10-40Gb/s applications

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