March 17, 2008 06:00 ET

Finisar Corporation Increases Line of Credit With Silicon Valley Bank to $70.5 Million

SUNNYVALE, CA--(Marketwire - March 17, 2008) - Finisar Corporation (NASDAQ: FNSR), a technology leader in gigabit fiber optic solutions for high-speed data networks, today announced that it had entered into an agreement with Silicon Valley Bank, the premier commercial bank for technology and life science companies and member of SVB Financial Group (NASDAQ: SIVB), to increase its available line of credit to $70.5 million.


Finisar has maintained a revolving line of credit totaling $35 million since October 2004 with Silicon Valley Bank consisting of a $20 million non-recourse receivables purchase agreement and a $15 million letter of credit reimbursement agreement to cover the issuance of standby letters of credit. As of March 14, 2008, the Company had utilized approximately $1 million under the non-recourse receivables purchase agreement and had letters of credit totaling approximately $10.4 million under the letter of credit reimbursement agreement.

In the most recent quarter ended January 27, 2008, the Company reported cash from operations of $14.2 million. Total cash, equivalents and long-term investments which can be readily converted to cash totaled $122.4 million at the end of the quarter.


Under the new credit arrangement with Silicon Valley Bank, Finisar will have access to as much as $70.5 million consisting of a $50 million secured line of credit in addition to $10 million under a non-recourse receivables purchase agreement and $10.5 million under a letter of credit reimbursement agreement. The new credit arrangement may be used for general corporate purposes including a reduction in the Company's outstanding convertible notes.


Silicon Valley Bank is the premier commercial bank for emerging, growth and mature companies in the technology, life science, private equity and premium wine industries. SVB provides a comprehensive suite of financing solutions, treasury management, corporate investment and international banking services to its clients worldwide. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 27 U.S. offices and three international operations. Silicon Valley Bank is a member of global financial services firm SVB Financial Group, with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at


Finisar Corporation (NASDAQ: FNSR) is a global technology leader for fiber optic components and subsystems and network test and monitoring systems. These products enable high-speed voice, video and data communications for networking, storage and wireless applications over Local Area Networks (LANs), Storage Area Networks (SANs), and Metropolitan Area Networks (MANs) using Ethernet, Fibre Channel, IP, SAS, SATA and SONET/SDH protocols. The Company is headquartered in Sunnyvale, California, USA. More information can be found at

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