Contact Information: Contact: Steve Workman Chief Financial Officer 408-548-1000 Victoria McDonald Senior Manager, Corporate Communications 408-542-4261 investor.relations@Finisar.com
Finisar Corporation Announces Reverse Stock Split
| Source: Finisar
SUNNYVALE, CA--(Marketwire - September 10, 2009) - Finisar Corporation (NASDAQ : FNSR ), a global
technology leader for fiber optic subsystems and components for
communication applications, today announced that its Board of Directors has
approved a 1-for-8 reverse split of its common stock, pursuant to
previously obtained stockholder authorization. The reverse stock split
will be effective at 4:30 pm, Eastern Time, on Friday, September 25, 2009.
Finisar's common stock will begin trading on NASDAQ on a split adjusted
basis when the market opens on September 28, 2009, under the temporary
trading symbol "FNSRD." The trading symbol will revert to "FNSR" after
approximately twenty trading days.
With the recent completion of exchange offers on August 6, 2009 in which
the Company exchanged $47.5 million aggregate principal amount of its
outstanding convertible notes for a combination of 28.3 million shares of
common stock and $24.9 million in cash, Finisar now has approximately 515
million shares outstanding. The number of shares currently outstanding
reflects in part a 3 for 1 stock split in March 2000 and the issuance of
approximately 230 million shares of common stock in connection with 10
acquisitions which the Company has completed since its initial public
offering in 1999. Approximately 195 million of those shares were issued in
connection with the acquisitions of the Infineon fiber optics business in
January 2005 and the Optium merger in August 2008.
Finisar's reverse stock split is intended to encourage investor interest in
its stock by giving more visibility to earnings per share as a measure of
company performance. The Company also believes that a higher share price
could broaden Finisar's appeal to investors, in addition to reducing per
share transaction fees and certain administrative costs.
The reverse split will reduce the number of shares of the Company's common
stock outstanding from approximately 515 million to approximately 64
million. Proportional adjustments will be made to Finisar's outstanding
stock options and other equity incentive awards, equity compensation plans
and convertible notes. The number of authorized shares of common stock
will not change.
INFORMATION FOR STOCKHOLDERS
Upon the effectiveness of the reverse stock split, each eight shares of
issued and outstanding common stock will be converted into one share of
Finisar common stock. Registered holders of Finisar common stock will
receive a letter of transmittal shortly after the effective date with
instructions for the exchange of their old stock certificates for new,
post-split certificates. American Stock Transfer and Trust Company will
act as the exchange agent and can be contacted at (800) 937-5449.
Stockholders with shares in brokerage accounts will be contacted by their
brokers with instructions.
Finisar will not issue fractional shares as a result of the reverse stock
split. Stockholders will receive a cash payment for fractional shares
based on the closing sales price of the new common stock immediately
following the effective date.
More information on Finisar's reverse stock split will be available
beginning September 15 in our "Reverse Stock Split FAQs" on the investor
page at www.finisar.com.
ABOUT FINISAR
Finisar Corporation (NASDAQ : FNSR ) is a global technology leader for fiber
optic subsystems components that enable high-speed voice, video and data
communications for networking, storage, wireless, and cable TV
applications. For more than 20 years, Finisar has provided critical optics
technologies to system manufacturers to meet the increasing demands for
network bandwidth and storage. Finisar is headquartered in Sunnyvale,
California, USA with R&D, manufacturing sites, and sales offices worldwide.
For additional information, visit www.finisar.com.