Finisar Announces Seventh Consecutive Quarter of Revenue Growth and FY14 Annual Revenue Growth of 24%

SUNNYVALE, CA--(Marketwired - Jun 12, 2014) - Finisar Corporation (NASDAQ: FNSR), a global technology leader for subsystems and components for fiber optic communications, today announced financial results for its fourth fiscal quarter and full 2014 fiscal year ended April 27, 2014. 

COMMENTARY

"I am pleased to report that fourth quarter revenues were $306.0 million, and annual fiscal 2014 revenues were $1,156.8 million, both new all-time records for Finisar. Quarterly revenues increased by $12.0 million, or 4.1%, over the third fiscal quarter and $62.6 million, or 25.7%, over the fourth fiscal quarter of the prior year. Quarterly revenues grew for the seventh consecutive quarter. Annual revenues increased by $222.5 million, or 23.8%, over the prior fiscal year," said Jerry Rawls, Finisar's executive Chairman of the Board.

"Demand for transceivers operating at 10Gb/s and faster continued to be strong during the quarter. Demand was also strong for our transceivers for LTE wireless applications. We continue to develop and release new products, which we expect will enable Finisar to expand our market share and continue to grow revenue," said Eitan Gertel, Finisar's Chief Executive Officer.

FINANCIAL HIGHLIGHTS - FOURTH QUARTER ENDED APRIL 27, 2014
Summary GAAP Results (a)		Fourth Quarter Ended  April 27, 2014				Third Quarter Ended  January 26, 2014
		(in thousands, except per share amounts)
Revenues		$	306,025			$	294,018
Gross margin			31.7	%			35.9	%
Operating expenses		$	75,369			$	72,593
Operating income		$	21,560			$	33,096
Operating margin			7.0	%			11.3	%
Net income		$	28,375			$	27,061
Income per share-basic		$	0.29			$	0.28
Income per share-diluted		$	0.27			$	0.26
Basic shares			96,965				96,394
Diluted shares			105,418				104,361
Summary Non-GAAP Results (b)		Fourth Quarter Ended April 27, 2014				Third Quarter Ended  January 26, 2014
		(in thousands, except per share amounts)
Revenues		$	306,025			$	294,018
Gross margin			34.2	%			37.2	%
Operating expenses		$	65,931			$	63,209
Operating income		$	38,882			$	46,295
Operating margin			12.7	%			15.7	%
Net income		$	36,992			$	44,993
Income per share-basic		$	0.38			$	0.47
Income per share-diluted		$	0.36			$	0.44
Basic shares			96,965				96,394
Diluted shares			105,418				104,361

_____________

(a)	The GAAP financial results included in this press release for the fourth quarter and fiscal 2014 do not include the impact of the amortization of acquired intangible assets in connection with the acquisition of u2t Photonics AG because the Company is in the process of obtaining a third-party valuation of such intangible assets and thus such impact has not yet been determined. The amount of such amortization of acquired intangible assets, when determined, is not expected to be material in the periods presented.
(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 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.

Financial Statement Highlights for the fourth quarter of fiscal 2014:

• Revenues increased to $306.0 million, up $12.0 million, or 4.1%, from $294.0 million in the preceding quarter.
  
  
• The sale of products for datacom applications increased by $12.6 million, or 6.0%, compared to the preceding quarter.
  
  
• The sale of products for telecom applications decreased by $0.6 million, or (0.7)%, compared to the preceding quarter, primarily driven by the impact of the full three months of the annual price reductions for telecom products that typically take effect on January 1^st.
  
  
• GAAP gross margin decreased to 31.7% from 35.9% in the preceding quarter, primarily driven by the impact of the full three months of the annual price reductions for telecom products that typically take effect on January 1^st as well as the impact of the u2t Photonics AG acquisition whose products carry a lower than corporate average gross margin.
  
  
• Non-GAAP gross margin decreased to 34.2% from 37.2% in the preceding quarter.
  
  
• GAAP operating income decreased $11.5 million to $21.6 million, or 7.0% of revenues, compared to $33.1 million, or 11.3% of revenues in the preceding quarter.
  
  
• Non-GAAP operating income decreased $7.4 million to $38.9 million, or 12.7% of revenues, compared to $46.3 million, or 15.7% of revenues, in the preceding quarter.  
  
  
• GAAP net income includes an approximate $8.3 million gain realized on the sale of our majority owned subsidiary Finisar Korea Ltd. during the quarter. This gain is not included in non-GAAP net income. 
  
  
• Cash, cash equivalents and short term investments decreased $41.7 million to $513.0 million at the end of the fourth quarter, compared to $554.7 million at the end of the preceding quarter, principally as the result of the acquisition of u2t Photonics AG, an increase in accounts receivable of $29.6 million and capital expenditures associated with the build out of the second building at our new manufacturing site in Wuxi China.
  
  

FINANCIAL HIGHLIGHTS - FISCAL YEAR 2014 ENDED APRIL 27, 2014
Summary GAAP Results (a)		Fiscal Year Ended April 27, 2014				Fiscal Year Ended April 28, 2013
		(in thousands, except per share amounts)
Revenues		$	1,156,833			$	934,335
Gross margin			34.3	%			27.5	%
Operating expenses		$	285,496			$	262,596
Operating income		$	111,868			$	(5,555	)
Operating margin			9.7	%			(0.6	)%
Net income		$	111,412			$	(5,454	)
Income per share-basic		$	1.16			$	(0.06	)
Income per share-diluted		$	1.09			$	(0.06	)
Basic shares			95,979				92,860
Diluted shares			104,112				92,860
Summary Non-GAAP Results (b)		Fiscal Year Ended April 27, 2014				Fiscal Year Ended April 28, 2013
		(in thousands, except per share amounts)
Revenues		$	1,156,833			$	934,335
Gross margin			35.9	%			30.9	%
Operating expenses		$	253,202			$	223,667
Operating income		$	162,341			$	65,247
Operating margin			14.0	%			7.0	%
Net income		$	157,021			$	61,255
Income per share-basic		$	1.64			$	0.66
Income per share-diluted		$	1.53			$	0.64
Basic shares			95,979				92,860
Diluted shares			104,112				99,284

_____________

(a)	The GAAP financial results included in this press release for the fourth quarter and fiscal 2014 do not include the impact of the amortization of acquired intangible assets in connection with the acquisition of u2t Photonics AG because the Company is in the process of obtaining a third-party valuation of such intangible assets and thus such impact has not yet been determined. The amount of such amortization of acquired intangible assets, when determined, is not expected to be material in the periods presented.
(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 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.

Financial Statement Highlights for fiscal 2014:

• Revenues increased to $1,156.8 million, up $222.5 million, or 23.8%, from $934.3 million in the preceding year.
  
  
• The sale of products for datacom applications increased by $231.1 million, or 39.1%, compared to the preceding year.
  
  
• The sale of products for telecom applications decreased by $8.6 million, or (2.5)%, compared to the preceding year.
  
  
• GAAP gross margin increased to 34.3% from 27.5% in the preceding year.
  
  
• Non-GAAP gross margin increased to 35.9% from 30.9% in the preceding year.
  
  
• GAAP operating income increased $117.4 million to $111.9 million, or 9.7% of revenues, compared to operating loss $(5.6) million, or (0.6)% of revenues in the preceding year.
  
  
• Non-GAAP operating income increased $97.1 million to $162.3 million, or 14.0% of revenues, compared to $65.2 million, or 7.0% of revenues, in the preceding year.  
  
  
• GAAP net income includes an approximate $8.3 million gain realized on the sale of our majority owned subsidiary Finisar Korea Ltd. during the quarter. This gain is not included in non-GAAP net income. 
  
  

OUTLOOK

The Company indicated that it currently expects revenues for the first quarter of fiscal 2015 to be in the range of $320 to $335 million, non-GAAP gross margin of approximately 32%, non-GAAP operating margin of approximately 10.3% to 11.3%, and non-GAAP earnings per diluted share to be in the range of approximately $0.30 to $0.34.

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 12, 2014, 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 1-877-857-6173 (domestic) or +1-719-325-4797 (international) and enter conference ID 3838782.

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 3838782 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; intensive competition; and the uncertainty of achieving anticipated cost savings and synergies in connection with the recently completed u2t acquisition. 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 24, 2013) and quarterly SEC filings.

ABOUT FINISAR

Finisar Corporation (NASDAQ: FNSR) is a global technology leader for fiber optic subsystems and components that enable high-speed voice, video and data communications for telecommunications, networking, storage, wireless, and cable TV applications. For 25 years, Finisar has provided critical optics technologies to system manufacturers to meet the increasing demands for network bandwidth. Finisar is headquartered in Sunnyvale, California, USA with R&D, manufacturing sites, and sales offices worldwide. For additional information, visit www.finisar.com. 

FINISAR FINANCIAL STATEMENTS The following financial tables are presented in accordance with GAAP, except that the GAAP financial results included in this press release for the fourth quarter and fiscal 2014 do not include the impact of the amortization of acquired intangible assets in connection with the acquisition of u2t Photonics AG because the Company is in the process of obtaining a third-party valuation of such intangible assets and thus such impact has not yet been determined. The amount of such amortization of acquired intangible assets, when determined, is not expected to be material in the periods presented.

Finisar Corporation
Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
				Three Months Ended						Twelve Months Ended						Three Months Ended
				April 27, 2014			April 28, 2013			April 27, 2014			April 28, 2013			January 26, 2014
Revenues				$	306,025		$	243,417		$	1,156,833		$	934,335		$	294,018
Cost of revenues					208,135			166,093			754,773			662,094			187,368
Impairment of acquired developed technology and other long-lived assets					-			8,156			-			8,156			-
Amortization of acquired developed technology					961			1,842			4,696			7,044			961
Gross profit					96,929			67,326			397,364			257,041			105,689
Gross margin					31.7	%		27.7	%		34.3	%		27.5	%		35.9	%
Operating expenses:
	Research and development				48,132			41,270			183,355			158,784			46,734
	Sales and marketing				11,509			11,056			46,547			42,347			10,911
	General and administrative				15,133			6,279			53,214			45,337			14,353
	Amortization of purchased intangibles				595			734			2,380			3,640			595
	Impairment of purchased intangibles and other long-lived assets				-			7,602			-			12,488			-
		Total operating expenses			75,369			66,941			285,496			262,596			72,593
Income (loss) from operations					21,560			385			111,868			(5,555	)		33,096
Interest income					485			211			1,319			755			335
Interest expense					(2,965	)		(544	)		(5,547	)		(2,589	)		(1,663	)
Other income (expenses), net					8,124			(154	)		7,234			(449	)		(1,873	)
Income (loss) before income taxes and non-controlling interest					27,204			(102	)		114,874			(7,838	)		29,895
Provision (benefits) for income taxes					(1,104	)		(1,506	)		3,712			227			2,827
Income (loss) before non-controlling interest					28,308			1,404			111,162			(8,065	)		27,068
Adjust for net (income) loss attributable to non-controlling interest					67			2,475			250			2,611			(7	)
Net income (loss) attributable to Finisar Corporation				$	28,375		$	3,879		$	111,412		$	(5,454	)	$	27,061
Net income (loss) per share attributable to Finisar Corporation common stockholders:
	Basic			$	0.29		$	0.04		$	1.16		$	(0.06	)	$	0.28
	Diluted			$	0.27		$	0.04		$	1.09		$	(0.06	)	$	0.26
Shares used in computing net income (loss) per share - basic					96,965			93,567			95,979			92,860			96,394
Shares used in computing net income (loss) per share - diluted					105,418			96,192			104,112			92,860			104,361

Finisar Corporation
Consolidated Balance Sheets
(in thousands)
				April 27, 2014			January 26, 2014			October 27, 2013			July 28, 2013			April 28, 2013
				(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
ASSETS
Current assets:
	Cash and cash equivalents			$	303,101		$	374,902		$	316,488		$	288,433		$	289,076
	Short-term held-to-maturity investments				209,922			179,847			-			-			-
	Accounts receivable, net				225,020			195,442			186,486			171,823			149,612
	Accounts receivable, other				33,749			24,274			25,890			34,386			16,538
	Inventories				259,759			247,126			231,235			207,029			200,670
	Prepaid expenses and other assets				33,029			22,764			20,902			19,533			18,402
		Total current assets			1,064,580			1,044,355			781,001			721,204			674,298
Property, equipment and improvements, net					273,328			247,394			231,022			213,044			201,442
Purchased intangible assets, net					21,113			21,976			23,587			25,416			30,457
Goodwill					115,279			90,986			90,986			90,986			90,986
Minority investments					2,117			2,041			1,841			1,711			884
Other assets					17,272			21,034			16,946			12,954			9,780
		Total assets		$	1,493,689		$	1,427,786		$	1,145,383		$	1,065,315		$	1,007,847
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable			$	119,439		$	96,723		$	98,220		$	90,488		$	77,630
	Accrued compensation				38,541			46,402			48,182			32,001			31,492
	Other accrued liabilities				31,976			26,370			32,943			31,542			23,533
	Deferred revenue				16,659			15,620			14,235			12,582			9,182
	Short term debt				243			4,230			4,700			-			-
	Current portion of convertible notes				40,015			40,015			40,015			-			-
		Total current liabilities			246,873			229,360			238,295			166,613			141,837
Long-term liabilities:
	Convertible notes, net of current portion				212,253			210,029			-			40,015			40,015
	Other non-current liabilities				18,879			11,680			12,756			12,908			13,480
		Total liabilities			478,005			451,069			251,051			219,536			195,332
Stockholders' equity:
	Common stock				97			97			96			96			94
	Additional paid-in capital				2,456,110			2,440,849			2,377,198			2,363,514			2,350,146
	Accumulated other comprehensive income				20,025			18,980			27,315			22,397			28,525
	Accumulated deficit				(1,460,548	)		(1,488,923	)		(1,515,984	)		(1,545,949	)		(1,571,960	)
		Finisar Corporation stockholders' equity			1,015,684			971,003			888,625			840,058			806,805
	Non-controlling interest				-			5,714			5,707			5,721			5,710
		Total stockholders' equity			1,015,684			976,717			894,332			845,779			812,515
Total liabilities and stockholders' equity				$	1,493,689		$	1,427,786		$	1,145,383		$	1,065,315		$	1,007,847
Note - Balance sheet amounts as of April 28, 2013 are derived from the audited consolidated financial statements as of the date.

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 Commissions: non-GAAP gross profit, non-GAAP operating income and non-GAAP 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 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 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:

• 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);
• Impairment of acquired developed technology and other long-lived assets (non-cash charges);
• Acquisition method accounting adjustment for sale of acquired inventory (non-cash charges);
• Flood related recovery (non-recurring cash benefit);
• Reduction in force costs (non-recurring cash charges); and
• Acquisition related retention payments (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:

• Gain or loss on litigation settlements and resolutions and related costs (non-recurring cash charges or benefits);
• Gain on fair value re-measurement of contingent consideration (non-cash benefit);
• Shareholder class action and derivative litigation costs (non-recurring cash expenses 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);
• Acquisition related costs (non-recurring cash charges);
• Impairment of long-lived assets (non-cash 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:

• Gains and losses on sales of assets (non-recurring and/or non-cash losses and gains related to the periodic disposal of assets no longer required for current activities);
• Gains and losses related to minority investments (non-cash or non-recurring benefits or charges);
• Other miscellaneous expenses (income) (non-recurring charges or benefits);
• Dollar denominated foreign exchange transaction losses (gains) (non-cash charges or benefits);
• Amortization of debt issuance costs (non-cash charges);
• Debt extinguishment loss (non-cash charges);
• Non-controlling interest non-GAAP adjustment (non-cash and/or non-recurring charges or benefits attributable to the non-controlling interest in majority-controlled subsidiaries); and
• Differences between cash payable for income taxes and the provision for income taxes in accordance with GAAP, less discrete items.

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
				April 27, 2014			April 28, 2013			April 27, 2014			April 28, 2013			January 26, 2014
GAAP to non-GAAP reconciliation of gross profit:
Gross profit - GAAP				$	96,929		$	67,326		$	397,364		$	257,041		$	105,689
Gross margin - GAAP					31.7	%		27.7	%		34.3	%		27.5	%		35.9	%
Adjustments:
Cost of revenues
	Change in excess and obsolete inventory reserve				3,384			390			3,439			8,248			384
	Amortization of acquired technology				961			1,842			4,696			7,044			961
	Stock compensation				2,531			1,731			8,738			7,233			2,374
	Impairment of acquired developed technology and other long-lived assets				-			8,156			-			8,156			-
	Flood-related expenses				-			(1,197	)		-			(1,197	)		-
	Acquisition method accounting adjustment for sale of acquired inventory				822			-			822			1,363			-
	Reduction in force costs				124			17			228			818			34
	Acquisition related retention payment				62			62			256			208			62
		Total cost of revenue adjustments			7,884			11,001			18,179			31,873			3,815
Gross profit - non-GAAP					104,813			78,327			415,543			288,914			109,504
Gross margin - non-GAAP					34.2	%		32.2	%		35.9	%		30.9	%		37.2	%
GAAP to non-GAAP reconciliation of operating income:
Operating income (loss) - GAAP					21,560			385			111,868			(5,555	)		33,096
Operating margin - GAAP					7.0	%		0.2	%		9.7	%		-0.6	%		11.3	%
Adjustments:
Total cost of revenue adjustments					7,884			11,001			18,179			31,873			3,815
Research and development
	Reduction in force costs				-			52			28			240			-
	Acquisition related retention payment				190			204			761			639			190
	Stock compensation				4,056			2,856			15,645			11,796			3,995
Sales and marketing
	Acquisition related retention payment				17			17			68			54			17
	Stock compensation				1,406			1,015			5,341			3,979			1,369
General and administrative
	Reduction in force costs				69			24			227			118			(82	)
	Acquisition related retention payment				8			220			1,044			696			(11	)
	Stock compensation				2,525			2,586			10,229			10,589			2,618
	Acquisition related costs				567			322			1,507			1,474			591
	Litigation settlements and resolutions and related costs				5			-			15			13			5
	Gain on fair value remeasurement of contingent consideration liability				-			(7,130	)		-			(7,130	)		-
	Shareholder class action and derivative litigation costs				-			144			(4,951	)		333			97
Amortization of purchased intangibles					595			734			2,380			3,640			595
Impairment of long-lived assets					-			7,602			-			12,488			-
	Total cost of revenue and operating expense adjustments				17,322			19,647			50,473			70,802			13,199
Operating income - non-GAAP					38,882			20,032			162,341			65,247			46,295
Operating margin - non-GAAP					12.7	%		8.2	%		14.0	%		7.0	%		15.7	%
GAAP to non-GAAP reconciliation of income attributable to Finisar Corporation:
Net income (loss) attributable to Finisar Corporation - GAAP					28,375			3,879			111,412			(5,454	)		27,061
Adjustments:
Total cost of revenue and operating expense adjustments					17,322			19,647			50,473			70,802			13,199
Non-cash imputed interest expenses on convertible debt					2,225			-			3,152			-			927
Imputed interest related to restructuring					53			146			220			520			54
Other (income) expense, net
	Gain on sale of assets				(8,156	)		(1,160	)		(8,291	)		(1,311	)		(30	)
	Gain related to minority investments				-			-			(743	)		-			-
	Other miscellaneous income				-			(2	)		(5	)		(263	)		(3	)
	Foreign exchange transaction (gain) or loss				(69	)		1,034			2,490			854			2,200
	Amortization of debt issuance cost				155			-			231			-			76
	Debt extinguishment loss				-			-			-			573			-
Provision for income taxes
	Income tax provision adjustments				(2,909	)		(1,506	)		(2,288	)		(2,217	)		1,327
Non-controlling interest non-GAAP adjustment					(4	)		(2,249	)		370			(2,249	)		182
Total adjustments					8,617			15,910			45,609			66,709			17,932
Net income attributable to Finisar Corporation - non-GAAP				$	36,992		$	19,789		$	157,021		$	61,255		$	44,993
Non-GAAP income attributable to Finisar Corporation				$	36,992		$	19,789		$	157,021		$	61,255		$	44,993
Add: interest expense for dilutive convertible notes					539			539			2,156			2,157			539
Adjusted non-GAAP income attributable to Finisar Corporation				$	37,531		$	20,328		$	159,177		$	63,412		$	45,532
Non-GAAP income per share attributable to Finisar Corporation common stockholders
	Basic			$	0.38		$	0.21		$	1.64		$	0.66		$	0.47
	Diluted			$	0.36		$	0.20		$	1.53		$	0.64		$	0.44
Shares used in computing non-GAAP income per share attributable to Finisar Corporation common stockholders
	Basic				96,965			93,567			95,979			92,860			96,394
	Diluted				105,418			99,941			104,112			99,284			104,361
Non-GAAP EBITDA
Non-GAAP income attributable to Finisar Corporation				$	36,992		$	19,789		$	157,021		$	61,255		$	44,993
Depreciation expense					17,518			13,692			62,026			52,815			15,960
Amortization					94			94			376			653			94
Interest expense					202			187			856			1,314			347
Income tax expense					1,805			0			6,000			2,444			1,500
Non-GAAP EBITDA				$	56,611		$	33,762		$	226,279		$	118,481		$	62,894

Finisar-F