Finisar’s quarterly revenue falls 5.3% due to drop in sales of 40G-and-lower transceivers and VCSEL arrays for 3D applications

For full-year fiscal 2019 (ended 28 April), fiber-optic communications component and subsystem maker Finisar Corp of Sunnyvale, CA, USA has reported revenue of $1280.5m, down 2.7% on fiscal 2018’s $1316.5m. In particular, Datacom product sales fell by $102.3m (9.9%), as a result of a decline in sales of 40G transceivers (due to customers switching their technology infrastructure to higher-speed transceivers) as well as lower 100G transceiver revenue (due to a decrease in the average selling prices for products). In contrast, Telecom product sales rose by $66.2m (23%), due mainly to an increase in sales of wavelength-selective switches (WSS) products.

Fiscal fourth-quarter 2019 revenue was $310.1m, down 5.3% on $327.6m last quarter but level with a year ago. Datacom product sales were down by $12.8m (5.5%) on last quarter, due mainly to a decline in sales of 40G-and-lower transceivers as well as vertical-cavity surface-emitting laser (VCSEL) arrays for 3D applications. Telecom product sales were down by $4.8m (5%) on last quarter, due mainly to a decline in sales of 10G tunable transceivers.

On a non-GAAP basis, full-year gross margin fell from 29.7% to 29.2%. However, quarterly gross margin of 30.8% is up on 30.2% last quarter and 24.7% a year ago.

Full-year operating expenses have been cut from $292.2m (22.2% of revenue) to $260.2m. This includes $64.6m in fiscal Q4, up slightly from $63.6m (19.5% of revenue) last quarter but cut from $72m a year ago.

Net income hence fell from $34.2m ($0.29 per diluted share) last quarter to $33m ($0.27 per diluted share). However, this was up from just $5.8m ($0.05 per diluted share) a year ago. Full-year net income has correspondingly risen from $100.4m ($0.86 per diluted share) to $119m ($1.00 per diluted share).

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Tags: Optical communications Finisar

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