Finisar back on revenue fast track in 3Q15
After seeing its string of quarterly revenue gains broken in the fiscal second quarter, Finisar Corp. (NASDAQ: FNSR) may have started a new skein in its third quarter of fiscal 2015, which ended January 25, 2015. The company reported venues of $306.3 million, up $9.3 million sequentially. The company expects further growth in 4Q15 as well.
After seeing its string of quarterly revenue gains broken in the fiscal second quarter (see "Finisar predicts revenue growth run to end this quarter"), Finisar Corp. (NASDAQ: FNSR) may have started a new skein in its third quarter of fiscal 2015, which ended January 25, 2015. The company reported venues of $306.3 million, up $9.3 million sequentially. The company expects further growth in 4Q15 as well.
The $306.3 million was within the company's guidance of $297 to $312 million and just about consensus among the financial community of $305 million. It also surpassed the $294 million recorded in the year-ago quarter, a revenue record at the time.
An $18.5 million sequential uptick in sales of datacom products offset a $9.2 million sequential decline in telecom products to account for the gain. Demand for 40- and 100-Gbps optical transceivers for datacom networks, as well as optical modules for wireless applications, led the way. Meanwhile, the effect of one month of annual telecom price reductions that typically begin on January 1 helped account for the telecom revenue decline. However, the company also cited "sluggish carrier capital expenditures" in a press release announcing the quarterly results.
The telecom price declines also dampened gross margin, with came in at 30.0% non-GAAP, down from the previous quarter's non-GAAP mark of 31.1%. Low yields on a new optical engine product didn't help, either. GAAP gross margin decreased to 25.5% from the 28.6% of 2Q15, primarily due to a $5.7 million non-cash charge for the impairment of long-lived assets.
On a GAAP basis, Finisar reported net income of $0.02 per share, significantly up from the net loss of $0.11 suffered the previous quarter. On a non-GAAP basis, the company earned $0.25 per diluted share, up from the prior quarter's $0.23.
Finisar management expects to end the fiscal year on an upbeat note, with revenues ranging between $310 million and $330 million. The company expects non-GAAP gross margin to remain flat at approximately 30%, and non-GAAP earnings per diluted share to range between approximately $0.22 and $0.28.
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