JUNE 10, 2010 -- Finisar Corp.(NASDAQ: FNSR) announced record revenue for its fourth quarter and fiscal year ended April 30, 2010. In the fourth quarter, total revenues under GAAP increased to $188.5 million, up $21.6 million, or 12.9%, from $166.9 million in the preceding quarter and up $81.0 million, or 75.4%, from $107.5 million in the fourth quarter of the prior year. For fiscal 2010, also under GAAP, total revenues increased to $629.9 million, up $132.8 million, or 26.7%, from $497.1 million in the prior year.
The company indicated the good times should continue to roll into the first quarter of fiscal 2011. Finisar management says it currently expects that revenues for the fiscal quarter ending August 1, 2010 will likely range from $190 to $205 million. On a GAAP basis, operating margin is expected to range from 7% to 8.5%. Additional non-cash and infrequently occurring charges excluded in calculating non-GAAP operating income are expected to total approximately $5 to $7 million. As a result, on a non-GAAP basis, operating margin is expected to be in the range of 10% to 11.5%.
Under GAAP, three product lines led the way in 4Q 2010:
- revenue from products for applications equal to or greater than 10 Gbps increased $6.6 million, or 9.8%, from the previous quarter
- products for applications less than 10 Gbps saw their revenues increase $8.6 million, or 11.5%, versus fiscal 3Q
- ROADM product sales increased $7.7 million, or 40.3%, against the previous quarter.
On the other hand, CATV product revenues decreased $1.3 million, or (23.3)%, from their 3Q10 levels.
Gross margin for the quarter increased to 31.2% from 31.0% in the preceding quarter and 21.6% in the fourth quarter of the prior year.
Meanwhile, highlights for fiscal year 2010 under GAAP included:
- sales of products at 10 Gbps and higher jumped $72.6 million, or 41.3%
- revenues from products below 10 Gbps increased $273,000, approximately unchanged
- ROADM products increased $50.2 million, or 226.1%
- CATV applications sales increased $9.7 million, or 103.4%
- gross margin increased to 28.5% from 27.9% in the prior year
Said Jerry Rawls, Finisar's executive chairman of the board, "The continued strong demand for Finisar products has been driven by growth in IP traffic, demand for mobile bandwidth, and the need to upgrade existing networks and build out new wireless backhaul networks. Those demands have powered Finisar to record revenue levels. We believe the underlying trends driving our business will continue and that fiscal 2011 will be another record year for us."
"While most of our product transfer activities to low-cost off-shore locations were largely complete at the end of the fourth quarter, there are additional merger synergies related to the integration of Finisar components into legacy Optium products to be realized over the next few quarters," said Eitan Gertel, Finisar's CEO. "As a result, we believe gross margins on a non-GAAP basis can continue to improve as these new engineering designs become qualified by our customers and we realize the expected benefits of anticipated additional revenue growth along with a favorable trend in product mix."
Finisar’s full financial statement, including non-GAAP figures, is available on its website.