SUNNYVALE, CA--(Marketwired - June 16, 2016) - Finisar Corporation (
COMMENTARY
"Revenues for our fourth fiscal quarter were $318.8 million, an increase of $9.6 million, or 3.1% compared to the prior quarter, primarily driven by growth in demand for 40G and 100G transceivers for datacom applications including CFP, CFP2, CFP4, QSFP and QSFP28 form factors. Better than expected gross margins, due to favorable product mix, and lower expenses resulted in earnings per fully diluted share exceeding the upper end of our prior guidance range," said Jerry Rawls, Finisar's Chief Executive Officer.
FINANCIAL HIGHLIGHTS - Fourth Quarter Ended May 1, 2016
Summary GAAP Results | Fourth | Third | ||
Quarter | Quarter | |||
Ended | Ended | |||
May 1, 2016 | January 31, 2016 | |||
(in thousands, except per share amounts) | ||||
Revenues | $318,794 | $309,206 | ||
Gross margin | 28.4% | 28.4% | ||
Operating expenses | $76,306 | $77,282 | ||
Operating income | $14,135 | $10,458 | ||
Operating margin | 4.4% | 3.4% | ||
Net income | $13,072 | $12,084 | ||
Income per share-basic | $0.12 | $0.11 | ||
Income per share-diluted | $0.12 | $0.11 | ||
Basic shares | 107,612 | 107,180 | ||
Diluted shares | 109,386 | 108,128 | ||
Summary Non-GAAP Results (a) | Fourth | Third | ||
Quarter | Quarter | |||
Ended | Ended | |||
May 1, 2016 | January 31, 2016 | |||
(in thousands, except per share amounts) | ||||
Revenues | $318,794 | $309,206 | ||
Non-GAAP Gross margin | 30.6% | 30.3% | ||
Non-GAAP Operating expenses | $66,186 | $67,292 | ||
Non-GAAP Operating income | $31,239 | $26,309 | ||
Non-GAAP Operating margin | 9.8% | 8.5% | ||
Non-GAAP Net income | $31,824 | $26,604 | ||
Non-GAAP Income per share-basic | $0.30 | $0.25 | ||
Non-GAAP Income per share-diluted | $0.29 | $0.25 | ||
Basic shares | 107,612 | 107,180 | ||
Diluted shares | 109,386 | 108,128 | ||
(a) | In evaluating the operating performance of Finisar's business, Finisar management utilizes financial measures that exclude certain charges and credits required by U.S. generally accepted accounting principles, or GAAP, that are considered by management to be outside of Finisar's core ongoing operating results. A reconciliation of Finisar's non-GAAP financial measures to the most directly comparable GAAP measures, as well as additional related information, can be found under the heading "Finisar Non-GAAP Financial Measures" below. |
Financial Statement Highlights for the Fourth Quarter of Fiscal 2016:
- Revenues were $318.8 million, an increase of $9.6 million, or 3.1%, from $309.2 million in the preceding quarter.
- Sales of products for datacom applications increased by $23.6 million, or 10.8%, compared to the preceding quarter, primarily driven by growth in demand for 40G and 100G transceivers including CFP, CFP2, CFP4, QSFP, and QSFP28 form factors
- Sales of products for telecom applications decreased by $14.1 million, or (15.6)%, compared to the preceding quarter, primarily as the result of the full three months of the telecom price negotiations and an unexpected decline in demand for legacy products including 10G fixed wavelength and tunable transceivers and amplifiers. In addition, factors expected to partially offset the negative impacts on telecom revenue above during the quarter were lower in magnitude than expected due to delays in adding manufacturing capacity for wavelength selective switches and delays in the qualification of new ROADM linecard designs.
- GAAP gross margin was 28.4% compared to 28.4% in the preceding quarter.
- Non-GAAP gross margin was 30.6% compared to 30.3% in the prior quarter, as favorable product mix was partially offset by the impact of the full three months of annual telecom price negotiations, which typically take effect on January 1.
- GAAP operating expenses were $76.3 million compared to $77.3 million in the prior quarter.
- Non-GAAP operating expenses decreased to $66.2 million compared to $67.3 million in the prior quarter primarily due to lower G&A costs including lower legal expenses.
- GAAP earnings per fully diluted share was $0.12 compared to $0.11 in the preceding quarter.
- Non-GAAP earnings per fully diluted share was $0.29 compared to $0.25 in the preceding quarter.
- Cash, cash equivalents and short term investments increased $31.4 million to $562.5 million at the end of the fourth quarter, compared to $531.1 million at the end of the preceding quarter.
FINANCIAL HIGHLIGHTS - Fiscal Year Ended May 1, 2016
Summary GAAP Results | ||||
Fiscal Year | Fiscal Year | |||
Ended | Ended | |||
May 1, 2016 | May 3, 2015 | |||
(in thousands, except per share amounts) | ||||
Revenues | $1,263,166 | $1,250,944 | ||
Gross margin | 28.1% | 28.1% | ||
Operating expenses | $313,627 | $324,116 | ||
Operating income | $41,022 | $26,794 | ||
Operating margin | 3.2% | 2.1% | ||
Net income | $35,193 | $11,887 | ||
Income per share-basic | $0.33 | $0.12 | ||
Income per share-diluted | $0.32 | $0.11 | ||
Basic shares | 106,678 | 101,408 | ||
Diluted shares | 108,870 | 104,970 | ||
Summary Non-GAAP Results (b) | ||||
Fiscal Year | Fiscal Year | |||
Ended | Ended | |||
May 1, 2016 | May 3, 2015 | |||
(in thousands, except per share amounts) | ||||
Revenues | $1,263,166 | $1,250,944 | ||
Non-GAAP Gross margin | 30.3% | 30.9% | ||
Non-GAAP Operating expenses | $269,909 | $270,040 | ||
Non-GAAP Operating income | $112,333 | $116,071 | ||
Non-GAAP Operating margin | 8.9% | 9.3% | ||
Non-GAAP Net income | $109,817 | $110,376 | ||
Non-GAAP Income per share-basic | $1.03 | $1.09 | ||
Non-GAAP Income per share-diluted | $1.01 | $1.04 | ||
Basic shares | 106,678 | 101,408 | ||
Diluted shares | 108,870 | 106,819 | ||
(b) | In evaluating the operating performance of Finisar's business, Finisar management utilizes financial measures that exclude certain charges and credits required by U.S. generally accepted accounting principles, or GAAP, that are considered by management to be outside of Finisar's core ongoing operating results. A reconciliation of Finisar's non-GAAP financial measures to the most directly comparable GAAP measures, as well as additional related information, can be found under the heading "Finisar Non-GAAP Financial Measures" below. |
Financial Statement Highlights for Fiscal 2016:
- Revenues were $1,263.2 million, an increase of $12.2 million, or 1.0%, from $1,250.9 million in the preceding year.
- Sales of products for datacom applications decreased by $4.2 million, or (0.5)%, compared to the preceding year primarily as the result of having only 52 weeks in the fiscal year compared to 53 weeks in fiscal 2015.
- Sales of products for telecom applications increased by $16.4 million, or 5.2%, compared to the preceding year primarily driven by growth in the demand for wavelength selective switches.
- GAAP gross margin was 28.1% compared to 28.1% in the preceding year.
- Non-GAAP gross margin was 30.3% compared to 30.9% in the prior year due to lower average selling prices.
- GAAP operating expenses were $313.6 million compared to $324.1 million in the prior year.
- Non-GAAP operating expenses were $269.9 million compared to $270.0 million in the prior year.
- GAAP earnings per fully diluted share was $0.32 compared to $0.11 in the preceding year.
- Non-GAAP earnings per fully diluted share was $1.01 compared to $1.04 in the preceding year.
- Cash, cash equivalents and short term investments increased $72.3 million to $562.5 million at the end of the fiscal year, compared to $490.2 million at the end of the preceding fiscal year.
OUTLOOK
The Company indicated that for the first quarter of fiscal 2017 it currently expects revenues in the range of $323 to $343 million, non-GAAP gross margin of approximately 31%, non-GAAP operating margin of approximately 9.9% to 10.9%, and non-GAAP earnings per fully diluted share in the range of approximately $0.27 to $0.33.
CONFERENCE CALL
Finisar will discuss its financial results for the fourth quarter and current business outlook during its regular quarterly conference call scheduled for Thursday, June 16, 2016, at 2:00 pm PT (5:00 pm ET). To listen to the call you may connect through the Finisar investor relations page at http://investor.finisar.com/ or dial 877-681-3372 (domestic) or 719-325-4790 (international) and enter conference ID 9069246.
An audio replay will be available for two weeks following the call by dialing 1-888-203-1112 (domestic) or +1-719-457-0820 and then following the prompts: enter conference ID 9069246 and provide your name, affiliation, and contact number. A replay of the webcast will be available shortly after the conclusion of the call on the Company's website until the next regularly scheduled earnings conference call.
SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statement concerning Finisar's expected financial performance. These statements are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on our current expectations, estimates, assumptions and projections about our business and industry, and the markets and customers we serve, and they are subject to numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Finisar assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from those projected. Examples of such risks include those associated with: the uncertainty of customer demand for Finisar's products; the rapidly evolving markets for Finisar's products and uncertainty regarding the development of these markets; Finisar's historical dependence on sales to a limited number of customers and fluctuations in the mix of products and customers in any period; ongoing new product development and introduction of new and enhanced products; the challenges of rapid growth followed by periods of contraction; and intensive competition. Further information regarding these and other risks relating to Finisar's business is set forth in Finisar's annual report on Form 10-K (filed June 19, 2015) and quarterly SEC filings.
ABOUT FINISAR
Finisar Corporation (
FINISAR FINANCIAL STATEMENTS The following financial tables are presented in accordance with GAAP.
Finisar Corporation | |||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||
(in thousands) | |||||||||||||||||
May 1, 2016 | Jan 31, 2016 | Nov 01, 2015 | Aug 02, 2015 | May 03, 2015 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 299,221 | $ | 268,330 | $ | 258,270 | $ | 232,997 | $ | 197,443 | |||||||
Short-term held-to-maturity investments | 263,255 | 262,726 | 262,500 | 262,695 | 292,748 | ||||||||||||
Accounts receivable, net | 249,257 | 241,384 | 230,065 | 234,798 | 213,234 | ||||||||||||
Accounts receivable, other | 44,576 | 41,933 | 39,982 | 40,807 | 40,650 | ||||||||||||
Inventories | 273,291 | 262,591 | 264,706 | 282,093 | 283,670 | ||||||||||||
Prepaid expenses and other assets | 18,483 | 25,317 | 20,538 | 22,649 | 36,518 | ||||||||||||
Total current assets | 1,148,083 | 1,102,281 | 1,076,061 | 1,076,039 | 1,064,263 | ||||||||||||
Property, equipment and improvements, net | 348,613 | 342,818 | 344,695 | 322,043 | 315,777 | ||||||||||||
Purchased intangible assets, net | 18,388 | 20,686 | 22,983 | 25,086 | 27,188 | ||||||||||||
Goodwill | 106,735 | 106,735 | 106,735 | 106,735 | 106,735 | ||||||||||||
Minority investments | 4,051 | 3,692 | 3,647 | 2,997 | 2,847 | ||||||||||||
Other assets | 21,119 | 21,516 | 23,133 | 34,960 | 35,072 | ||||||||||||
Total assets | $ | 1,646,989 | $ | 1,597,728 | $ | 1,577,254 | $ | 1,567,860 | $ | 1,551,882 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 141,591 | $ | 131,240 | $ | 133,220 | $ | 139,600 | $ | 131,510 | |||||||
Accrued compensation | 36,084 | 32,908 | 31,680 | 26,392 | 24,918 | ||||||||||||
Other accrued liabilities | 42,206 | 45,492 | 43,301 | 39,753 | 39,238 | ||||||||||||
Deferred revenue | 13,529 | 11,933 | 12,438 | 11,480 | 9,850 | ||||||||||||
Total current liabilities | 233,410 | 221,573 | 220,639 | 217,225 | 205,516 | ||||||||||||
Long-term liabilities: | |||||||||||||||||
Convertible notes, net of current portion | 231,011 | 228,561 | 226,151 | 223,760 | 221,406 | ||||||||||||
Other non-current liabilities | 14,882 | 21,765 | 23,195 | 21,545 | 21,167 | ||||||||||||
Total liabilities | 479,303 | 471,899 | 469,985 | 462,530 | 448,089 | ||||||||||||
Stockholders' equity: | |||||||||||||||||
Common stock | 108 | 108 | 107 | 107 | 104 | ||||||||||||
Additional paid-in capital | 2,605,859 | 2,593,587 | 2,577,246 | 2,564,506 | 2,551,114 | ||||||||||||
Accumulated other comprehensive income (loss) | (25,188 | ) | (41,701 | ) | (31,835 | ) | (14,390 | ) | 861 | ||||||||
Accumulated deficit | (1,413,093 | ) | (1,426,165 | ) | (1,438,249 | ) | (1,444,893 | ) | (1,448,286 | ) | |||||||
Total stockholders' equity | 1,167,686 | 1,125,829 | 1,107,269 | 1,105,330 | 1,103,793 | ||||||||||||
Total liabilities and stockholders' equity | $ | 1,646,989 | $ | 1,597,728 | $ | 1,577,254 | $ | 1,567,860 | $ | 1,551,882 | |||||||
Note - Balance sheet amounts as of May 3, 2015 are derived from the audited consolidated financial statements as of the date.
Finisar Corporation | ||||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | Three Months Ended | ||||||||||||||||
May 1, 2016 | May 03, 2015 | May 1, 2016 | May 03, 2015 | Jan 31, 2016 | ||||||||||||||
Revenues | $ | 318,794 | $ | 320,042 | $ | 1,263,166 | $ | 1,250,944 | $ | 309,206 | ||||||||
Cost of revenues | 226,723 | 229,390 | 901,316 | 888,573 | 219,836 | |||||||||||||
Impairment of long-lived assets | - | - | 1,071 | 5,722 | - | |||||||||||||
Amortization of acquired developed technology | 1,630 | 1,435 | 6,130 | 5,739 | 1,630 | |||||||||||||
Gross profit | 90,441 | 89,217 | 354,649 | 350,910 | 87,740 | |||||||||||||
Gross margin | 28.4 | % | 27.9 | % | 28.1 | % | 28.1 | % | 28.4 | % | ||||||||
Operating expenses: | ||||||||||||||||||
Research and development | 50,169 | 51,117 | 203,389 | 202,089 | 49,840 | |||||||||||||
Sales and marketing | 11,621 | 11,800 | 46,619 | 46,178 | 11,899 | |||||||||||||
General and administrative | 13,848 | 15,303 | 60,117 | 72,856 | 14,875 | |||||||||||||
Impairment of long-lived assets | - | - | 830 | 45 | - | |||||||||||||
Amortization of purchased intangibles | 668 | 713 | 2,672 | 2,948 | 668 | |||||||||||||
Total operating expenses | 76,306 | 78,933 | 313,627 | 324,116 | 77,282 | |||||||||||||
Income from operations | 14,135 | 10,284 | 41,022 | 26,794 | 10,458 | |||||||||||||
Interest income | 802 | 536 | 2,345 | 1,811 | 709 | |||||||||||||
Interest expense | (3,017 | ) | (3,335 | ) | (11,750 | ) | (12,022 | ) | (2,933 | ) | ||||||||
Other income (expenses), net | (80 | ) | 4,041 | 3,214 | 4,099 | 1,968 | ||||||||||||
Income before income taxes | 11,840 | 11,526 | 34,831 | 20,682 | 10,202 | |||||||||||||
Provision (benefit) for income taxes | (1,232 | ) | 4,199 | (362 | ) | 8,795 | (1,882 | ) | ||||||||||
Net income | $ | 13,072 | $ | 7,327 | $ | 35,193 | $ | 11,887 | $ | 12,084 | ||||||||
Net income per share attributable to Finisar Corporation common stockholders: | ||||||||||||||||||
Basic | $ | 0.12 | $ | 0.07 | $ | 0.33 | $ | 0.12 | $ | 0.11 | ||||||||
Diluted | $ | 0.12 | $ | 0.07 | $ | 0.32 | $ | 0.11 | $ | 0.11 | ||||||||
Shares used in computing net income per share - basic | 107,612 | 104,005 | 106,678 | 101,408 | 107,180 | |||||||||||||
Shares used in computing net income per share - diluted | 109,386 | 107,535 | 108,870 | 104,970 | 108,128 | |||||||||||||
FINISAR NON-GAAP FINANCIAL MEASURES
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Finisar provides the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission: non-GAAP gross profit, non-GAAP operating income, non-GAAP income and non-GAAP net income per share. These non-GAAP financial measures are supplemental information regarding the Company's operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be outside of our ongoing core operating results. Management believes that tracking non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and non-GAAP net income per share provides management and the investment community with valuable insight into our ongoing core current operations, our ability to generate cash and the underlying business trends which are affecting our performance. These non-GAAP measures are used by both management and our Board of Directors, along with the comparable GAAP information, in evaluating our current performance and planning our future business activities. In particular, management finds it useful to exclude non-cash charges in order to better correlate our operating activities with our ability to generate cash from operations and to exclude certain cash charges as a means of more accurately predicting our liquidity requirements. We believe that these non-GAAP measures, when used in conjunction with our GAAP financial information, also allow investors to better evaluate our financial performance in comparison to other periods and to other companies in our industry.
In calculating non-GAAP gross profit in this release, we have excluded the following items from cost of revenues in applicable periods in this release:
- Changes in excess and obsolete inventory reserve (predominantly non-cash charges);
- Amortization of acquired technology (non-cash charges related to technology obtained in acquisitions);
- Duplicate facility costs during facility move (non-core cash charges);
- Stock-based compensation expense (non-cash charges);
- Impairment of long-lived assets (non-cash charges);
- Reduction in force costs (non-core cash charges); and
- Acquisition related retention payments (non-core cash charges).
In calculating non-GAAP operating income in this release, we have excluded the same items to the extent they are classified as operating expenses, and have also excluded the following items in applicable periods in this release:
- Gain or loss on litigation settlements and resolutions and related costs (non-core cash charges or benefits);
- Shareholder class action and derivative litigation costs (non-core cash charges associated with the derivative litigation related to our historical stock option granting practices and related to the class action and derivative litigation related to our March 8, 2011 earnings announcement);
- Employee and employer tax liabilities related to the 2006 special investigation into our historical stock option granting practices (non-core cash charges);
- Acquisition related costs (non-core cash charges);
- Impairment of acquired R&D reimbursement receivable (non-core non-cash charges);
- Unclaimed property tax audit accrual (non-core charges); and
- Amortization of purchased intangibles (non-cash charges).
In calculating non-GAAP income and non-GAAP income per share in this release, we have also excluded the following items in applicable periods in this release:
- Imputed interest expenses on convertible debt (non-cash charges);
- Imputed interest related to restructuring (non-cash charges);
- Other interest income (non-core benefits);
- Gains and losses on sales of assets (non-cash losses and cash gains related to the periodic disposal of assets no longer required for current activities);
- Gain related to minority investments (non-core benefit);
- Other miscellaneous expenses (income) (non-core charges or benefits);
- Dollar denominated foreign exchange transaction losses (gains) (non-cash charges or benefits); and
- Amortization of debt issuance costs (non-cash charges).
In addition, in this release we have adjusted non-GAAP income and non-GAAP income per share for the difference between GAAP income taxes and non-GAAP income taxes.
A reconciliation of this non-GAAP financial information to the corresponding GAAP information is set forth below:
Finisar Corporation | ||||||||||||||||||||
Reconciliation of Results of Operations under GAAP and non-GAAP | ||||||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | Three Months Ended | ||||||||||||||||||
May 1, 2016 | May 03, 2015 | May 1, 2016 | May 03, 2015 | Jan 31, 2016 | ||||||||||||||||
GAAP to non-GAAP reconciliation of gross profit: | ||||||||||||||||||||
Gross profit - GAAP | $ | 90,441 | $ | 89,217 | $ | 354,649 | $ | 350,910 | $ | 87,740 | ||||||||||
Gross margin - GAAP | 28.4 | % | 27.9 | % | 28.1 | % | 28.1 | % | 28.4 | % | ||||||||||
Adjustments: | ||||||||||||||||||||
Cost of revenues | ||||||||||||||||||||
Change in excess and obsolete inventory valuation adjustments | 2,102 | 2,752 | 7,227 | 10,293 | 1,293 | |||||||||||||||
Amortization of acquired technology | 1,630 | 1,435 | 6,130 | 5,739 | 1,630 | |||||||||||||||
Duplicate facility costs during facility move | 8 | 4 | 101 | 776 | 7 | |||||||||||||||
Stock compensation | 2,847 | 2,692 | 11,000 | 10,216 | 2,539 | |||||||||||||||
Impairment of long-lived assets | - | 420 | 1,282 | 6,266 | - | |||||||||||||||
Reduction in force costs | 369 | 406 | 1,704 | 1,571 | 364 | |||||||||||||||
Acquisition related retention payment | 28 | 72 | 149 | 340 | 28 | |||||||||||||||
Total cost of revenue adjustments | 6,984 | 7,781 | 27,593 | 35,201 | 5,861 | |||||||||||||||
Gross profit - non-GAAP | 97,425 | 96,998 | 382,242 | 386,111 | 93,601 | |||||||||||||||
Gross margin - non-GAAP | 30.6 | % | 30.3 | % | 30.3 | % | 30.9 | % | 30.3 | % | ||||||||||
GAAP to non-GAAP reconciliation of operating income: | ||||||||||||||||||||
Operating income - GAAP | 14,135 | 10,284 | 41,022 | 26,794 | 10,458 | |||||||||||||||
Operating margin - GAAP | 4.4 | % | 3.2 | % | 3.2 | % | 2.1 | % | 3.4 | % | ||||||||||
Adjustments: | ||||||||||||||||||||
Total cost of revenue adjustments | 6,984 | 7,781 | 27,593 | 35,201 | 5,861 | |||||||||||||||
Total operating expense adjustments | ||||||||||||||||||||
Operating expenses - GAAP | 76,306 | 78,933 | 313,627 | 324,116 | 77,282 | |||||||||||||||
Research and development | ||||||||||||||||||||
Reduction in force costs | 386 | 82 | 904 | 790 | 230 | |||||||||||||||
Duplicate facility costs during facility move | 7 | 143 | 284 | 1,009 | 7 | |||||||||||||||
Acquisition related retention payment | 32 | 104 | 222 | 595 | 32 | |||||||||||||||
Stock compensation | 4,855 | 5,084 | 19,386 | 18,916 | 4,723 | |||||||||||||||
Impairment of long-lived assets | - | - | 287 | - | - | |||||||||||||||
Impairment of acquired R&D reimbursement receivable | - | 87 | - | 87 | - | |||||||||||||||
Sales and marketing | ||||||||||||||||||||
Reduction in force costs | 1 | - | 225 | - | 44 | |||||||||||||||
Acquisition related retention payment | - | 12 | 15 | 50 | 2 | |||||||||||||||
Stock compensation | 1,747 | 1,749 | 6,885 | 6,503 | 1,713 | |||||||||||||||
General and administrative | ||||||||||||||||||||
Reduction in force costs | 49 | - | 1,403 | 103 | 39 | |||||||||||||||
Duplicate facility costs | 24 | - | 191 | 152 | 150 | |||||||||||||||
Acquisition related retention payment | 4 | 8 | (1 | ) | (24 | ) | - | |||||||||||||
Stock compensation | 2,381 | 2,894 | 10,241 | 10,977 | 2,343 | |||||||||||||||
Payroll taxes related to options investigation | - | - | - | 17 | - | |||||||||||||||
Acquisition related costs | (1 | ) | 18 | 434 | 292 | 39 | ||||||||||||||
Litigation settlements and resolutions and related costs | 1 | (6 | ) | 17 | 11,748 | - | ||||||||||||||
Shareholder class action and derivative litigation costs | (184 | ) | (121 | ) | (184 | ) | (131 | ) | - | |||||||||||
Unclaimed property tax audit accrual | 150 | - | 150 | - | - | |||||||||||||||
Amortization of purchased intangibles | 668 | 713 | 2,672 | 2,948 | 668 | |||||||||||||||
Impairment of long-lived assets | - | (1 | ) | 587 | 44 | - | ||||||||||||||
Total operating expense adjustments | 10,120 | 10,766 | 43,718 | 54,076 | 9,990 | |||||||||||||||
Operating expenses - non-GAAP | 66,186 | 68,167 | 269,909 | 270,040 | 67,292 | |||||||||||||||
Operating income - non-GAAP | 31,239 | 28,831 | 112,333 | 116,071 | 26,309 | |||||||||||||||
Operating margin - non-GAAP | 9.8 | % | 9.0 | % | 8.9 | % | 9.3 | % | 8.5 | % | ||||||||||
GAAP to non-GAAP reconciliation of income before income taxes: | ||||||||||||||||||||
Income before income taxes - GAAP | 11,840 | 11,526 | 34,831 | 20,682 | 10,202 | |||||||||||||||
Adjustments: | ||||||||||||||||||||
Total cost of revenue adjustments | 6,984 | 7,781 | 27,593 | 35,201 | 5,861 | |||||||||||||||
Total operating expense adjustments | 10,120 | 10,766 | 43,718 | 54,076 | 9,990 | |||||||||||||||
Total Interest and other adjustments | ||||||||||||||||||||
Other interest income | (6 | ) | - | (119 | ) | - | (113 | ) | ||||||||||||
Non-cash imputed interest expenses on convertible debt | 2,449 | 2,334 | 9,605 | 9,153 | 2,411 | |||||||||||||||
Imputed interest related to restructuring | 40 | 47 | 171 | 196 | 42 | |||||||||||||||
Other (income) expense, net | ||||||||||||||||||||
Loss (gain) on sale of assets | 165 | (559 | ) | (579 | ) | (317 | ) | (644 | ) | |||||||||||
Loss (gain) related to minority investments | - | (1,470 | ) | - | (1,470 | ) | - | |||||||||||||
Other miscellaneous income | (184 | ) | (850 | ) | (1,824 | ) | (1,028 | ) | (1,503 | ) | ||||||||||
Foreign exchange transaction (gain) or loss | 362 | (607 | ) | 925 | 1,373 | 1,205 | ||||||||||||||
Amortization of debt issuance cost | 154 | 154 | 616 | 616 | 154 | |||||||||||||||
Total Interest and other adjustments | 2,980 | (951 | ) | 8,795 | 8,523 | 1,552 | ||||||||||||||
Income before income taxes - non-GAAP | 31,924 | 29,122 | 114,937 | 118,482 | 27,605 | |||||||||||||||
GAAP to non-GAAP reconciliation of net income: | ||||||||||||||||||||
Net income - GAAP | 13,072 | 7,327 | 35,193 | 11,887 | 12,084 | |||||||||||||||
Total cost of revenue adjustments | 6,984 | 7,781 | 27,593 | 35,201 | 5,861 | |||||||||||||||
Total operating expense adjustments | 10,120 | 10,766 | 43,718 | 54,076 | 9,990 | |||||||||||||||
Total Interest and other adjustments | 2,980 | (951 | ) | 8,795 | 8,523 | 1,552 | ||||||||||||||
Income tax provision adjustments | (1,332 | ) | 1,950 | (5,482 | ) | 689 | (2,883 | ) | ||||||||||||
Total adjustments | 18,752 | 19,546 | 74,624 | 98,489 | 14,520 | |||||||||||||||
Net income - non-GAAP | $ | 31,824 | $ | 26,873 | $ | 109,817 | $ | 110,376 | $ | 26,604 | ||||||||||
Non-GAAP net income for diluted earnings per share calcuation | ||||||||||||||||||||
Non-GAAP net income | $ | 31,824 | $ | 26,873 | $ | 109,817 | $ | 110,376 | $ | 26,604 | ||||||||||
Add: interest expense for dilutive convertible notes | - | - | - | 1,072 | - | |||||||||||||||
Adjusted non-GAAP income | $ | 31,824 | $ | 26,873 | $ | 109,817 | $ | 111,448 | $ | 26,604 | ||||||||||
Basic non-GAAP income per share | ||||||||||||||||||||
GAAP earnings per share | $ | 0.12 | $ | 0.07 | $ | 0.33 | $ | 0.12 | $ | 0.11 | ||||||||||
Impact of all non-GAAP adjustments | $ | 0.18 | $ | 0.19 | $ | 0.70 | $ | 0.97 | $ | 0.14 | ||||||||||
Non-GAAP earnings per share | $ | 0.30 | $ | 0.26 | $ | 1.03 | $ | 1.09 | $ | 0.25 | ||||||||||
Diluted non-GAAP income per share | ||||||||||||||||||||
GAAP earnings per share | $ | 0.12 | $ | 0.07 | $ | 0.32 | $ | 0.11 | $ | 0.11 | ||||||||||
Impact of all non-GAAP adjustments | $ | 0.17 | $ | 0.18 | $ | 0.69 | $ | 0.93 | $ | 0.14 | ||||||||||
Non-GAAP earnings per share | $ | 0.29 | $ | 0.25 | $ | 1.01 | $ | 1.04 | $ | 0.25 | ||||||||||
Shares used in computing non-GAAP income per share | ||||||||||||||||||||
Basic | 107,612 | 104,005 | 106,678 | 101,408 | 107,180 | |||||||||||||||
Diluted | 109,386 | 107,535 | 108,870 | 106,819 | 108,128 | |||||||||||||||
Finisar-F
Contact Information:
Investor Contact:
Kurt Adzema
Chief Financial Officer
408-542-5050 or
Investor.relations@finisar.com
Press contact:
Victoria McDonald
Director, Corporate Communications
408-542-4261