News

1 December 2006

 

Finisar reports 13th quarter of growth, but reviews stock option grant practices

For its fiscal second quarter (to 29 October 2006), Finisar Corp of Sunnyvale, CA, USA, which supplies gigabit fiber-optic solutions for high-speed data networks, has reported its 13th consecutive quarter of revenue growth and its 9th consecutive quarter of record revenues: $108.2m (up 1.8% on the prior quarter and 24.9% on a year ago).

Optical subsystem and component revenues were $99.0m (up 3.1% on the prior quarter and 27.8% on a year ago) and network test and monitoring system revenues were $9.2m (down 10% on the prior quarter and level with a year ago).

"We had very strong growth in sales of 10Gb/s optical transceivers," says chairman, president and CEO Jerry Rawls. "In addition, we continued to make progress in operational efficiency, with lower costs and controlled
expenses." Finisar's cash reserves have risen by $7.6m to $130m. "We expect market demand for 10Gb/s transceivers to remain strong for the foreseeable future," he adds.

* Finisar reviewing stock option grant practices since 1999's IPO

Full financial results will be reported on Finisar's completion of a voluntary review of stock option grant practices made since its initial public offering in November 1999.

Based on the preliminary results of the review, senior management has concluded, and Finisar's Audit Committee agrees, that it is likely that the measurement dates for certain stock option grants differed from the recorded
grant dates for such awards, and that the company will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to some past stock option grants.

Finisar has not yet determined the amount of such charges, the resulting tax implications (which may result in additional tax liabilities), the accounting impact on its financial statements, or which periods may require restatement. As a result of the ongoing investigation, Finisar will delay
the filing of its Form 10-Q for the quarter ended 29 October.

The Audit Committee is in the process of conducting a further investigation and has engaged independent legal counsel to assist in the investigation.

* Finisar appoints acting CFO

Finisar's board of directors has approved a medical leave of absence for Stephen K. Workman, senior VP, Finance and chief financial officer, and appointed John Drury as acting CFO in addition to his role as VP and corporate controller since February 2004. Previously, from January 2000 to
February 2004, Drury was corporate controller for compound semiconductor substrate manufacturer AXT Inc. His interim appointment will end upon Workman's return, says Finisar.

See releted items:

Finisar unveils expanded plant in Texas as it ships 50 millionth VCSEL

Finisar reports 12th quarter of growth

Visit: http://www.Finisar.com