Finisar: We’ll beat 2Q guidance

NOVEMBER 15, 2010 -- In the face of the drubbing Cisco’s stock took for a poorer than anticipated outlook for next quarter, as well as expressions of caution by such optical equipment vendors as Ciena, Finisar Corp. (NASDAQ: FNSR) has announced that it expects to report revenues for its fiscal second quarter well above the guidance it provided when reporting its first quarter revenues.

Revenue growth in the second quarter was driven by increased demand for a broad range of LAN/SAN and metro/telecom products, Finisar said.

Finisar said it expects to report revenue in the range of $240 to $241 million for its second fiscal quarter ended October 31, 2010. Finisar’s previous guidance for the quarter was $215 to $230 million. If Finisar hits these numbers, second quarter revenues will set a new record for the company and represent the sixth consecutive quarter of double-digit, sequential revenue growth.

The company also said it expects non-GAAP gross margin to be approximately 35.5% and non-GAAP operating margin to be approximately 16.5% to 17.0%, exceeding its previous operating margin guidance of 14% to 15%. Non-GAAP earnings per share are expected to be in the range of $0.41 to $0.43 for the quarter.

Based on the midpoint of the new expected range, second quarter revenues would represent:

an increase of $32.6 million, or 15.7%, compared to $207.9 million in the prior quarter
an increase of $94.8 million, or 65.0%, compared to $145.7 million in the prior fiscal year period.

The Company indicated that it currently expects revenues for its third fiscal quarter ending January 30, 2011 to be in the range of $247 to $262 million.

Finisar’s regular quarterly conference call scheduled for Wednesday, December 1, 2010.

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