SUNNYVALE, CA--(Marketwire - Nov 30, 2011) - Finisar Corporation (
COMMENTARY
"In our just completed fiscal second quarter, our revenues were $241.5 million, 5.8% greater than the preceding first quarter, primarily driven by growth in sales of our WSS and ROADM line card products, tunable XFP transceivers, and the consolidation of a full quarter of the financial results of our Ignis subsidiary. We achieved a non-GAAP gross margin of 32.1%. Non-GAAP operating income increased 12.5% from the preceding quarter, and non-GAAP operating margin increased to 9.8% from 9.2% in the preceding quarter. Our non-GAAP earnings per diluted share were $0.23," said Jerry Rawls, Finisar's executive Chairman of the Board.
"We continued to execute well on our product development plan and have delivered to customers a number of innovative products in the WSS and pluggable product lines during the second quarter," said Eitan Gertel, Finisar's Chief Executive Officer. "Production of our tunable XFP transceiver products began to ramp during the second quarter of fiscal 2012. Tunable XFPs were qualified at several additional customers during the second quarter and we expect more qualifications in the third quarter. In addition, we have qualified our next generation edge or access WSS modules with multiple customers and expect revenue from these products to continue to ramp in the first half of calendar 2012."
| FINANCIAL HIGHLIGHTS -SECOND QUARTER ENDED October 30, 2011 | ||||||||||||
| Summary GAAP Results | Second Quarter Ended |
Second Quarter Ended |
First Quarter Ended |
|||||||||
| Oct 30, 2011 | Oct 31, 2010 | July 31, 2011 | ||||||||||
| (in thousands, except per share amounts) | ||||||||||||
| Continuing operations | ||||||||||||
| Revenues | $ | 241,489 | $ | 240,943 | $ | 228,226 | ||||||
| Gross margin | 29.1 | % | 34.2 | % | 29.1 | % | ||||||
| Operating expenses | $ | 61,464 | $ | 46,295 | $ | 59,391 | ||||||
| Operating income | $ | 8,817 | $ | 36,105 | $ | 7,090 | ||||||
| Operating margin | 3.7 | % | 15.0 | % | 3.1 | % | ||||||
| Income | $ | 5,927 | $ | 33,796 | $ | 10,142 | ||||||
| Income per share-basic | $ | 0.07 | $ | 0.44 | $ | 0.11 | ||||||
| Income per share-diluted | $ | 0.06 | $ | 0.39 | $ | 0.11 | ||||||
| Basic shares | 90,715 | 76,766 | 90,221 | |||||||||
| Diluted shares | 93,599 | 89,521 | 93,527 | |||||||||
| Summary Non-GAAP Results (a) | Second Quarter Ended |
Second Quarter Ended |
First Quarter Ended |
|||||||||
| Oct 30, 2011 | Oct 31, 2010 | July 31, 2011 | ||||||||||
| (in thousands, except per share amounts) | ||||||||||||
| Continuing operations | ||||||||||||
| Revenues | $ | 241,489 | $ | 240,943 | $ | 228,226 | ||||||
| Gross margin | 32.1 | % | 35.5 | % | 32.1 | % | ||||||
| Operating expenses | $ | 53,845 | $ | 44,594 | $ | 52,414 | ||||||
| Operating income | $ | 23,559 | $ | 40,897 | $ | 20,944 | ||||||
| Operating margin | 9.8 | % | 17.0 | % | 9.2 | % | ||||||
| Income | $ | 21,537 | $ | 38,302 | $ | 19,528 | ||||||
| Income per share-basic | $ | 0.24 | $ | 0.50 | $ | 0.22 | ||||||
| Income per share-diluted | $ | 0.23 | $ | 0.44 | $ | 0.21 | ||||||
| Basic shares | 90,715 | 76,766 | 90,221 | |||||||||
| Diluted shares | 97,347 | 89,521 | 97,275 | |||||||||
_____________
(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 Finisar's core 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.
Highlights for the second quarter of fiscal 2012 under GAAP:
- Revenues increased to $241.5 million, up $13.3 million, or 5.8%, from $228.2 million in the preceding quarter, primarily driven by growth in sales of our WSS/ROADM line card products and tunable XFP transceiver products, as well as the consolidation of a full quarter of the financial results of our Ignis subsidiary.
- Compared to the preceding quarter, the sale of products for datacom applications decreased by $0.6 million, or (0.4%), and the sale of products for telecom applications increased by $13.8 million, or 13.9%.
- Gross margin was unchanged from the preceding quarter at 29.1% of revenues as the benefits of the increased revenue levels were offset by the consolidation of a full quarter of the financial results of Ignis, which has a lower average gross margin than the overall corporate average.
- Operating income increased $1.7 million to $8.8 million, or 3.7% of revenues, compared to $7.1 million, or 3.1% of revenues, in the preceding quarter as revenue grew faster than operating expenses despite the consolidation of a full quarter of the operating expenses of Ignis.
- Income from continuing operations was $5.9 million, or $0.06 per diluted share, compared to $10.1 million, or $0.11 per diluted share, in the preceding quarter.
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Finisar provides supplemental information regarding its operating performance on a non-GAAP basis. For the second quarter of fiscal 2011, items related to continuing operations representing a net charge of approximately $15.6 million were excluded. The excluded items are described in Finisar Non-GAAP Financial Measures below.
Highlights for the second quarter of fiscal 2012 on a non-GAAP basis:
- Non-GAAP gross margin was unchanged from the preceding quarter at 32.1% of revenues as the benefits of the increased revenue levels were offset by the consolidation of a full quarter of the financial results of Ignis, which has a lower average gross margin than the overall corporate average.
- Non-GAAP operating income increased $2.6 million to $23.6 million, or 9.8% of revenues, compared to $20.9 million, or 9.2% of revenues, in the preceding quarter as revenue grew faster than operating expenses despite the consolidation of a full quarter of the operating expenses of Ignis.
- Non-GAAP income from continuing operations was $21.6 million, or $0.23 per diluted share, compared to $19.5 million, or $0.21 per diluted share in the preceding quarter.
- Non-GAAP EBITDA increased $2.7 million to $34.3 million, or 14.2% of revenues, compared to $31.6 million, or 13.8% of revenues in the preceding quarter.
Balance Sheet Highlights for the second quarter of fiscal 2012:
- Cash and cash equivalents totaled $228.0 million at the end of the second quarter compared to $238.1 million at the end of the preceding quarter. The decline was primarily the result of the repayment of $5.6 million of Ignis debt and increases in accounts receivable and inventory as detailed below.
- Days sales outstanding increased to 67 days from 65 days in the preceding quarter. The combination of higher DSOs and higher revenue levels resulted in an increase in the balance of accounts receivable of $10.0 million.
- Inventory turns were 3.2, the same as the preceding quarter, while overall inventory at the end of the second quarter increased $6.4 million over the preceding quarter.
- At the end of the second quarter, Finisar had approximately $40.0 million in principal amount of convertible notes outstanding with a conversion price of $10.675 per share.
- At the end of the second quarter, Ignis also had outstanding debt equivalent to approximately $4.3 million, which is reflected in Finisar's consolidated balance sheet.
- Under Finisar's $70.0 million secured credit facility with Wells Fargo Foothill, LLC, no borrowings were outstanding and $66.6 million was available to borrow at the end of the second quarter.
OUTLOOK
The Company indicated that it currently expects third fiscal quarter revenues to be in the range of $235 to $250 million; GAAP operating margin to be in the range of approximately 3.5% to 5.0%; non-GAAP operating margin to be in the range of 8.5% to 10.0% and non-GAAP earnings per diluted share to be in the range of approximately $0.20 to $0.24.
CONFERENCE CALL
Finisar will discuss its financial results for the second quarter and current business outlook during its regular quarterly conference call scheduled for Wednesday, November 30, 2011, at 2:00 pm PST (5:00 pm EST). To listen to the call you may connect through the Finisar investor relations page at http://investor.finisar.com/ or dial 1-888-542-1102 (domestic) or (719) 325-2373 (international) and enter conference ID 4696405.
An audio replay will be available for two weeks following the call by dialing 1-888-203-1112 (domestic) or (719) 457-0820 and then following the prompts: enter conference ID 4696405 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
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements included in this press release are based upon information available to Finisar as of the date hereof, and 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; challenges related to the integration of the Ignis acquisition and realizing anticipated benefits of improved access to a supply of tunable lasers; 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 28, 2011) and quarterly SEC filings.
ABOUT FINISAR
Finisar Corporation (
FINISAR FINANCIAL STATEMENTS
The following financial tables are presented in accordance with GAAP.
| Finisar Corporation | |||||||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | Three Months Ended | |||||||||||||||||||||
| October 30, 2011 | October 31, 2010 | October 30, 2011 | October 31, 2010 | July 31, 2011 | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||
| Revenues | $ | 241,489 | $ | 240,943 | $ | 469,715 | $ | 448,825 | $ | 228,226 | |||||||||||||
| Cost of revenues | 169,571 | 157,343 | 329,794 | 293,135 | 160,223 | ||||||||||||||||||
| Amortization of acquired developed technology | 1,637 | 1,200 | 3,159 | 2,392 | 1,522 | ||||||||||||||||||
| Gross profit | 70,281 | 82,400 | 136,762 | 153,298 | 66,481 | ||||||||||||||||||
| Gross margin | 29.1 | % | 34.2 | % | 29.1 | % | 34.2 | % | 29.1 | % | |||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | 36,707 | 28,148 | 72,103 | 54,765 | 35,396 | ||||||||||||||||||
| Sales and marketing | 10,125 | 9,247 | 19,711 | 18,322 | 9,586 | ||||||||||||||||||
| General and administrative | 13,773 | 8,517 | 27,725 | 19,593 | 13,952 | ||||||||||||||||||
| Amortization of purchased intangibles | 859 | 383 | 1,638 | 766 | 779 | ||||||||||||||||||
| Restructuring recoveries | - | - | (322 | ) | - | (322 | ) | ||||||||||||||||
| Total operating expenses | 61,464 | 46,295 | 120,855 | 93,446 | 59,391 | ||||||||||||||||||
| Income from operations | 8,817 | 36,105 | 15,907 | 59,852 | 7,090 | ||||||||||||||||||
| Interest income | 100 | 143 | 260 | 235 | 160 | ||||||||||||||||||
| Interest expense | (1,138 | ) | (2,077 | ) | (2,049 | ) | (4,232 | ) | (911 | ) | |||||||||||||
| Loss on debt extinguishment | - | - | (419 | ) | - | (419 | ) | ||||||||||||||||
| Other income (expense), net | (140 | ) | 192 | 4,523 | - | 4,663 | |||||||||||||||||
| Income from continuing operations before income taxes and non-controlling interest | 7,639 | 34,363 | 18,222 | 55,855 | 10,583 | ||||||||||||||||||
| Provision for income taxes | 1,369 | 567 | 1,917 | 2,649 | 548 | ||||||||||||||||||
| Consolidated net income | 6,270 | 33,796 | 16,305 | 53,206 | 10,035 | ||||||||||||||||||
| Adjust for net loss attributable to non-controlling interest | (343 | ) | - | (236 | ) | - | 107 | ||||||||||||||||
| Net income attributable to Finisar Corporation | 5,927 | 33,796 | 16,069 | 53,206 | 10,142 | ||||||||||||||||||
| Loss from discontinued operations, net of taxes | - | - | - | (284 | ) | - | |||||||||||||||||
| Net income | $ | 5,927 | $ | 33,796 | $ | 16,069 | $ | 52,922 | $ | 10,142 | |||||||||||||
| Income per share from continuing operations - basic | $ | 0.07 | $ | 0.44 | $ | 0.18 | $ | 0.70 | $ | 0.11 | |||||||||||||
| Income per share from continuing operations - diluted | $ | 0.06 | $ | 0.39 | $ | 0.17 | $ | 0.63 | $ | 0.11 | |||||||||||||
| Income per share from discontinued operations - basic | $ | - | $ | - | $ | - | $ | (0.00 | ) | $ | - | ||||||||||||
| Income per share from discontinued operations - diluted | $ | - | $ | - | $ | - | $ | (0.00 | ) | $ | - | ||||||||||||
| Shares used in computing net income per share from continuing operations - basic | 90,715 | 76,766 | 90,470 | 76,433 | 90,221 | ||||||||||||||||||
| Shares used in computing net income per share from continuing operations - diluted | 93,599 | 89,521 | 93,712 | 89,013 | 93,527 | ||||||||||||||||||
| Shares used in computing net income per share from discontinued operations - basic | 90,715 | 76,766 | 90,470 | 76,433 | 90,221 | ||||||||||||||||||
| Shares used in computing net income per share from discontinued operations - diluted | 93,599 | 89,521 | 93,712 | 89,013 | 93,527 | ||||||||||||||||||
| Finisar Corporation | ||||||||||||||
| Consolidated Balance Sheets | ||||||||||||||
| (In thousands) | ||||||||||||||
| October 30, 2011 | July 31, 2011 | April 30, 2011 | ||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 228,040 | $ | 238,052 | $ | 314,765 | ||||||||
| Accounts receivable, net | 176,494 | 166,536 | 168,386 | |||||||||||
| Accounts receivable, other | 11,558 | 12,788 | 12,733 | |||||||||||
| Inventories | 214,940 | 208,567 | 187,617 | |||||||||||
| Prepaid expenses and other | 19,120 | 16,029 | 9,906 | |||||||||||
| Total current assets | 650,152 | 641,972 | 693,407 | |||||||||||
| Property, equipment and improvements, net | 143,139 | 138,300 | 125,693 | |||||||||||
| Purchased intangible assets, net | 47,306 | 49,979 | 17,439 | |||||||||||
| Goodwill | 82,936 | 83,107 | - | |||||||||||
| Minority investments | 12,289 | 12,289 | 12,289 | |||||||||||
| Equity method investments | - | - | 31,142 | |||||||||||
| Other assets | 21,773 | 21,291 | 5,179 | |||||||||||
| Total assets | $ | 957,595 | $ | 946,938 | $ | 885,149 | ||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 91,034 | $ | 87,996 | $ | 76,288 | ||||||||
| Accrued compensation | 24,410 | 17,494 | 24,525 | |||||||||||
| Other accrued liabilities | 32,118 | 33,828 | 25,112 | |||||||||||
| Deferred revenue | 7,909 | 9,762 | 8,064 | |||||||||||
| Current portion of long-term debt | 4,281 | 7,547 | - | |||||||||||
| Total current liabilities | 159,752 | 156,627 | 133,989 | |||||||||||
| Long-term liabilities: | ||||||||||||||
| Convertible notes, net of current portion | 40,015 | 40,015 | 40,015 | |||||||||||
| Long-term debt, net of current portion | - | 2,329 | - | |||||||||||
| Other non-current liabilities | 15,771 | 16,314 | 11,988 | |||||||||||
| Deferred tax liabilities | 4,052 | 3,553 | - | |||||||||||
| Total liabilities | 219,590 | 218,838 | 185,992 | |||||||||||
| Stockholders' equity: | ||||||||||||||
| Common stock | 91 | 91 | 90 | |||||||||||
| Additional paid-in capital | 2,293,485 | 2,285,769 | 2,275,600 | |||||||||||
| Accumulated other comprehensive income | 29,323 | 33,404 | 32,966 | |||||||||||
| Accumulated deficit | (1,593,430 | ) | (1,599,357 | ) | (1,609,499 | ) | ||||||||
| Finisar Corporation stockholders' equity | 729,469 | 719,907 | 699,157 | |||||||||||
| Non-controlling interest | 8,536 | 8,193 | - | |||||||||||
| Total stockholders' equity | 738,005 | 728,100 | 699,157 | |||||||||||
| Total liabilities and stockholders' equity | $ | 957,595 | $ | 946,938 | $ | 885,149 | ||||||||
FINISAR NON-GAAP FINANCIAL MEASURES
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Finisar provides 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 which occur relatively infrequently and which management considers to be outside our core operating results. Some of these non-GAAP measures also exclude the ongoing impact of historical business decisions made in different business and economic environments. Management believes that tracking non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share provides management and the investment community with valuable insight into our 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 non-recurring and infrequently incurred 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:
- Changes in excess and obsolete inventory reserve (predominantly non-cash charges or non-cash benefits);
- Amortization of acquired technology (non-cash charges related to technology obtained in acquisitions);
- Stock-based compensation expense (non-cash charges);
- Acquisition method accounting adjustment for sale of acquired inventory (non-cash charges); and
- Reduction in force costs (non-recurring 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:
- Transaction fees associated with acquisitions (non-recurring charges);
- Gain or loss on litigation settlements and resolutions and related costs (non-recurring charges);
- Amortization of purchased intangibles (non-cash charges);and
- Restructuring costs (non-recurring charges).
In calculating non-GAAP income from continuing operations and non-GAAP income from continuing operations per share in this release, we have also excluded the following items in applicable periods:
- Amortization of discount on convertible debt and imputed interest expense (non-cash charges);
- Imputed interest expense related to restructuring (amortization of imputed interest expense associated with previously incurred restructuring costs);
- Gains and losses on sales of assets (non-recurring or non-cash losses and cash gains related to the periodic disposal of assets no longer required for current activities);
- Dollar denominated foreign exchange transaction losses (gains) (non-cash charges);
- Charges related to the non-controlling equity interest in the net loss of an investee (non-cash charges);
- Debt extinguishment loss (non-recurring charges);
- Fair value remeasurement of equity investment (non-cash gain from remeasurement of value of prior investment in an investee);
- Differences between cash payable for income taxes and the provision for income taxes in accordance with GAAP, less discrete items; and
- Other miscellaneous income and expenses (non-recurring charges).
In calculating non-GAAP income (loss) per share in this release, we have included the shares issuable upon conversion of our outstanding convertible notes and excluded the interest expenses associated with such notes in such periods where such treatment is dilutive to non-GAAP income (loss) per share.
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 | ||||||||||||||||||||||
| Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||||||
| October 30, 2011 | October 31, 2010 | October 30, 2011 | October 31, 2010 | July 31, 2011 | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||
| Reconciliation of GAAP income to non-GAAP income from continuing operations | ||||||||||||||||||||||
| Reconciliation of GAAP Gross Profit to non-GAAP Gross Profit: | ||||||||||||||||||||||
| Gross profit per GAAP | $ | 70,281 | $ | 82,400 | $ | 136,762 | $ | 153,298 | $ | 66,481 | ||||||||||||
| Gross margin, GAAP | 29.1 | % | 34.2 | % | 29.1 | % | 34.2 | % | 29.1 | % | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Cost of revenues | ||||||||||||||||||||||
| Change in excess and obsolete inventory reserve | 2,521 | 575 | 3,611 | 980 | 1,090 | |||||||||||||||||
| Amortization of acquired technology | 1,637 | 1,200 | 3,159 | 2,392 | 1,522 | |||||||||||||||||
| Stock compensation | 1,687 | 1,310 | 3,546 | 2,056 | 1,859 | |||||||||||||||||
| Acquisition method accounting adjustment for sale of acquired inventory | 1,229 | - | 3,083 | - | 1,854 | |||||||||||||||||
| Reduction in force costs | 49 | 6 | 601 | 42 | 552 | |||||||||||||||||
| Total cost of revenue adjustments | 7,123 | 3,091 | 14,000 | 5,470 | 6,877 | |||||||||||||||||
| Gross profit, non-GAAP | 77,404 | 85,491 | 150,762 | 158,768 | 73,358 | |||||||||||||||||
| Gross margin, non-GAAP | 32.1 | % | 35.5 | % | 32.1 | % | 35.4 | % | 32.1 | % | ||||||||||||
| Reconciliation of GAAP operating income to non-GAAP operating income: | ||||||||||||||||||||||
| Operating income per GAAP | 8,817 | 36,105 | 15,907 | 59,852 | 7,090 | |||||||||||||||||
| Operating margin, GAAP | 3.7 | % | 15.0 | % | 3.4 | % | 13.3 | % | 3.1 | % | ||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Total cost of revenue adjustments | 7,123 | 3,091 | 14,000 | 5,470 | 6,877 | |||||||||||||||||
| Research and development | ||||||||||||||||||||||
| Reduction in force costs | 73 | - | 73 | 5 | - | |||||||||||||||||
| Stock compensation | 2,274 | 1,702 | 4,635 | 2,739 | 2,361 | |||||||||||||||||
| Sales and marketing | ||||||||||||||||||||||
| Reduction in force costs | - | 81 | - | 155 | - | |||||||||||||||||
| Stock compensation | 767 | 528 | 1,631 | 979 | 864 | |||||||||||||||||
| General and administrative | ||||||||||||||||||||||
| Reduction in force costs | 865 | 50 | 963 | 92 | 98 | |||||||||||||||||
| Stock compensation | 1,945 | 1,422 | 3,953 | 2,447 | 2,008 | |||||||||||||||||
| Acquisition related costs | 209 | - | 1,298 | - | 1,089 | |||||||||||||||||
| Litigation settlements and resolutions and related costs | 627 | (2,465 | ) | 727 | (2,565 | ) | 100 | |||||||||||||||
| Amortization of purchased intangibles | 859 | 383 | 1,638 | 766 | 779 | |||||||||||||||||
| Restructuring recoveries | - | - | (322 | ) | - | (322 | ) | |||||||||||||||
| Total cost of revenue and operating expense adjustments | 14,742 | 4,792 | 28,596 | 10,088 | 13,854 | |||||||||||||||||
| Operating income, non-GAAP | 23,559 | 40,897 | 44,503 | 69,940 | 20,944 | |||||||||||||||||
| Operating margin, non-GAAP | 9.8 | % | 17.0 | % | 9.5 | % | 15.6 | % | 9.2 | % | ||||||||||||
| Reconciliation of GAAP income to non-GAAP income from continuing operations: | ||||||||||||||||||||||
| Income per GAAP from continuing operations | 5,927 | 33,796 | 16,069 | 53,206 | 10,142 | |||||||||||||||||
| Total cost of revenue and operating expense adjustments | 14,742 | 4,792 | 28,596 | 10,088 | 13,854 | |||||||||||||||||
| Non-cash imputed interest expenses on convertible debt | - | 367 | - | 742 | - | |||||||||||||||||
| Imputed interest related to restructuring | 396 | - | 466 | - | 70 | |||||||||||||||||
| Other income (expense), net | ||||||||||||||||||||||
| Loss (gain) on sale of assets | 221 | (9 | ) | 222 | 7 | 1 | ||||||||||||||||
| Loss related to minority and equity method investments | - | - | 619 | - | 619 | |||||||||||||||||
| Other misc. expenses or (income) | 250 | (58 | ) | 250 | (58 | ) | - | |||||||||||||||
| Foreign exchange transaction gain | (494 | ) | (471 | ) | (642 | ) | (538 | ) | (148 | ) | ||||||||||||
| Debt extinguishment loss | - | - | 419 | - | 419 | |||||||||||||||||
| Fair value remeasurement of equity investment | - | - | (5,429 | ) | - | (5,429 | ) | |||||||||||||||
| Provision for income tax | ||||||||||||||||||||||
| Timing differences | 495 | (115 | ) | 495 | 667 | - | ||||||||||||||||
| Total adjustments | 15,610 | 4,506 | 24,996 | 10,908 | 9,386 | |||||||||||||||||
| Income, non-GAAP, from continuing operations | 21,537 | 38,302 | 41,065 | 64,114 | 19,528 | |||||||||||||||||
| Reconciliation of GAAP loss to non-GAAP loss from discontinued operations: | ||||||||||||||||||||||
| Loss per GAAP from discontinued operations | - | - | - | (284 | ) | - | ||||||||||||||||
| Loss from discontinued operations, non-GAAP | - | - | - | (284 | ) | - | ||||||||||||||||
| Reconciliation of GAAP net income (loss) to non-GAAP net income (loss): | ||||||||||||||||||||||
| Net income (loss) per GAAP | 5,927 | 33,796 | 16,069 | 52,922 | 10,142 | |||||||||||||||||
| Total adjustments from continuing operations | 15,610 | 4,506 | 24,996 | 10,908 | 9,386 | |||||||||||||||||
| Total adjustments from discontinuing operations | - | - | - | - | - | |||||||||||||||||
| Total adjustments | 15,610 | 4,506 | 24,996 | 10,908 | 9,386 | |||||||||||||||||
| Net income, non-GAAP | $ | 21,537 | $ | 38,302 | $ | 41,065 | $ | 63,830 | $ | 19,528 | ||||||||||||
| Income from continuing operations | $ | 21,537 | $ | 38,302 | $ | 41,065 | $ | 64,114 | $ | 19,528 | ||||||||||||
| Add: interest expense for dilutive convertible notes | 539 | 1,374 | 1,078 | 2,752 | 539 | |||||||||||||||||
| Adjusted income from continuing operations | $ | 22,076 | $ | 39,676 | $ | 42,143 | $ | 66,866 | $ | 20,067 | ||||||||||||
| Income per share from continuing operations - basic | $ | 0.24 | $ | 0.50 | $ | 0.45 | $ | 0.84 | $ | 0.22 | ||||||||||||
| Income per share from continuing operations - diluted | $ | 0.23 | $ | 0.44 | $ | 0.43 | $ | 0.75 | $ | 0.21 | ||||||||||||
| Shares used in computing net income per share from continuing operations - basic | 90,715 | 76,766 | 90,470 | 76,433 | 90,221 | |||||||||||||||||
| Shares used in computing net income per share from continuing operations - diluted | 97,347 | 89,521 | 97,460 | 89,013 | 97,275 | |||||||||||||||||
| Continuing operations | ||||||||||||||||||||||
| Net income, non-GAAP | $ | 21,537 | $ | 38,302 | $ | 41,065 | $ | 64,114 | $ | 19,528 | ||||||||||||
| Depreciation expense | 10,995 | 8,684 | 21,590 | 16,850 | 10,595 | |||||||||||||||||
| Amortization | 208 | 289 | 416 | 578 | 208 | |||||||||||||||||
| Interest expense | 642 | 1,567 | 1,323 | 3,255 | 681 | |||||||||||||||||
| Income tax expense | 874 | 682 | 1,422 | 1,983 | 548 | |||||||||||||||||
| Non-GAAP EBITDA | $ | 34,256 | $ | 49,524 | $ | 65,816 | $ | 86,780 | $ | 31,560 | ||||||||||||
| Discontinued operations | ||||||||||||||||||||||
| Net loss, non-GAAP | - | - | - | (284 | ) | - | ||||||||||||||||
| Depreciation expense | - | - | - | - | - | |||||||||||||||||
| Non-GAAP EBITDA | $ | - | $ | - | $ | - | $ | (284 | ) | $ | - | |||||||||||
| Total Non-GAAP EBITDA | $ | 34,256 | $ | 49,524 | $ | 65,816 | $ | 86,496 | $ | 31,560 | ||||||||||||
Contact Information:
Investor Contact:
Kurt Adzema
Chief Financial Officer
408-542-5050
or
Investor.relations@finisar.com
Press contact:
Victoria McDonald
Sr. Manager, Corporate Communications
408-542-4261