Finisar, a major supplier of subsystems and components for fibre optic communications, announced financial results for its fourth quarter and full fiscal year 2017, ended April 30, 2017, as follows:
1. Revenue for the fourth quarter of 2017 of $357.53 million, down 6.1% compared with $380.5 million in the third quarter of fiscal 2017 and up 12.1% from $318.79 million in the fourth quarter of 2016.
2. Gross profit for the fourth quarter of $125.16 million, down 8.3% compared with $136.64 million in the third quarter of fiscal 2017 and up 38.4% from $90.44 million in the fourth quarter of 2016.
3. R&D expenditure for the fourth quarter of $58.97 million, up 8.0% compared with $54.59 million in the third quarter of fiscal 2017 and up 17.5% from $50.17 million in the fourth quarter of 2016.
4. SG&A expenditure for the fourth quarter of $24.64 million, down 6.4% compared with $26.33 million in the third quarter of fiscal 2017 and down 3.3% from $25.47 million in the fourth quarter of 2016.
5. Total operating expenditure for the fourth quarter of $84.32 million, up 3.2% compared with $81.73 million in the third quarter of fiscal 2017 and up 10.5% from $76.31 million in the fourth quarter of 2016.
6. On a GAAP basis, net income for the fourth quarter of $130.24 million, compared with net income of $46.39 million in the third quarter of fiscal 2017 and net income of $13.07 million in the fourth quarter of 2016.
On a non-GAAP basis, net income for the fourth quarter of $57.51 million, compared with net income of $67.20 million in the third quarter of fiscal 2017 and net income of $31.82 million in the fourth quarter of 2016.
7. Cash and cash equivalents as of April 30, 2017 of $260.23 million, versus $240.59 million as at January 29, 2017 and $299.22 million as at May 1, 2016.
Additional results and notes
For the full year 2017, Finisar reported revenue of $1,449.3 million, versus $1,263.2 million a year earlier, with net income of $249.35 million, compared with net income of $35.19 million in fiscal year 2016.
Finisar noted that in the fourth quarter, sales of datacom products increased by $2.8 million (1.1%) compared to the third quarter, with sales of 100 Gbit/s QSFP28 transceivers for datacom applications up approximately 30% sequentially, but offset by lower demand for other datacom products, mainly 10 Gbit/s and below shortwave transceivers.
Sales of telecom products in the fourth quarter decreased by $20.2 million (18.2%) compared to the third quarter, primarily due to lower revenue from Chinese OEM customers and 3 months of annual telecom price erosion.
Outlook
For the first quarter of fiscal 2018, Finisar currently expects revenue in the range $330 to $350 million, representing a sequential decline of 4.9% at the midpoint.
