On Tuesday, Finisar reported record revenue $263.0 million for its third fiscal quarter ended 30-January-2011, exceeding the revenue guidance. The company said revenue growth was driven primarily by demand for 40 Gbps transponders, wavelength selective switches (WSS) and ROADM line cards. Non-GAAP earnings per diluted share was a record $0.47, at the top end of our prior guidance of $0.45 to $0.47 per share, and would have been $0.48, except for the impact of our common stock offering in December 2010.
“We achieved new company records for quarterly revenues, non-GAAP operating income and non-GAAP net income during the quarter. Our revenues for WSS/ROADM line card products grew 22.7% from the second quarter,” said Eitan Gertel, Finisar’s Chief Executive Officer.”
However, looking ahead to this quarter, Finisar said it is being impacted by the full three months of the annual price negotiations with telecom customers that typically take effect on January 1, the 10-day long shutdown at certain customers for Chinese New Year in February, the adjustment of inventory levels at some telecom customers, particularly for products which had previously been on allocation and long lead times, including WSS and ROADM line cards, and a slowdown in business in China overall.
Primarily as a result of these factors, Finisar currently expects revenues for the fourth quarter to be in the range of $235 to $250 million. On a GAAP basis, operating margin is expected to be in the range of approximately 10 to 12%. http://www.finisar.com
