-- Revenues of $105.7 million represented an 8.7% increase from $97.3
million in the previous quarter and were down slightly from $106.2 million
in the comparable quarter of the prior year. The favorable comparison to
the previous quarter was primarily related to the transition by two
customers to "just-in-time inventory" arrangements which impacted revenues
during the previous quarter and the utilization by certain customers of
excess inventories of products designed for SAN applications during that
quarter.
-- Revenues of $96.4 million from the sale of optical products
represented a 9% increase from $88.4 million in the previous quarter and
were up slightly from $96.0 million in the comparable quarter of the prior
year. Revenues from the sale of network test and monitoring products of
$9.4 million represented a 5.5% increase from $8.9 million in the previous
quarter and a decline of 8.1% from $10.0 million in the comparable quarter
of the prior year.
-- Shipments of products designed for 10-40 Gb/s applications totaled
$18.2 million, up 22.8% from $14.9 million in the previous quarter and up
218% from $5.8 million in the comparable quarter of the prior year.
-- Gross margins were lower than the previous quarter primarily as a
result of additional costs associated with ramping the introduction of new
products and unfavorable manufacturing variances associated with reducing
production levels to better match inventories on hand.
-- Cash and short-term investments, plus other long-term investments
which can be readily converted into cash, totaled $121.1 million, down from
$123.7 million at the end of last quarter in conjunction with a reduction
of $7 million in accounts payable. The Company has classified certain of
its investments as long-term based on its intent to hold these securities
until maturity, although they can be readily sold if required.
"We were pleased to see revenues bounce back from last quarter as we
recovered from a number of customer supply chain and excess inventory
issues," said Jerry Rawls, Finisar's CEO. "We are heavily focused on the
continued penetration of the telecom equipment market for 10 Gb/s, 40 Gb/s,
and WDM products and the LAN/SAN markets for 8 Gb/s and 10 Gb/s products.
We continue to invest in R&D in all these emerging market areas as our
customers continue to be optimistic about the end-user demand for more
bandwidth."
Conference Call
Finisar plans to review its preliminary first quarter results and discuss
its current business outlook during a conference call for investors at 5:00
p.m. EDT (2:00 p.m. PDT) today, September 4, 2007. The call will be
broadcast live over the Internet on the Investor Relations section of
Finisar's web site, located at www.Finisar.com. To listen to the Webcast,
interested investors are encouraged to log onto the broadcast at least 15
minutes prior to the call. Participating in the call will be Jerry Rawls,
Finisar's President and CEO, and Steve Workman, Finisar's CFO.
Non-GAAP Financial Measures
The Company provides supplemental information regarding the Company's
operational performance on a non-GAAP basis which excludes various non-cash
and cash charges, principally related to acquisitions, restructuring
activities and financing transactions. Non-GAAP gross profit and non-GAAP
net income (loss), as reported by the Company, give an indication of the
Company's baseline performance before gains, losses or other charges that
are considered by management to be outside of our core operating results.
While non-GAAP financial measures are not in accordance with, or an
alternative for, generally accepted accounting principles in the United
States, the Company's management uses this information for the purpose of
evaluating the Company's historical and prospective financial performance
in the ordinary course of business. The Company believes that providing
this information to its investors, in addition to the GAAP presentation,
allows investors to better evaluate the Company's progress over time and
its financial results in comparison to other companies with whom it
competes.
Safe Harbor Under the Private Securities Litigation Reform Acts 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, including statements
regarding Finisar's expectations, beliefs, intentions, or strategies
regarding the future. 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. These risks include those associated with 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 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. These risks and uncertainties also
include the extent to which additional stock-based compensation expense
will be recognized as a result of the ongoing review of the Company's stock
option granting practices; the timing of the Company's filings relating to
any restated financial information; the impact of any regulatory review of
the disclosures in those documents; and the potential impact of related
civil litigation. Further information regarding these and other risks
relating to Finisar's business is set forth in Finisar's Annual Report on
Form 10-K and other reports as filed with the Securities and Exchange
Commission.
About Finisar
Finisar Corporation (Contact Information: Contact: Steve Workman Chief Financial Officer 408-548-1000 Investor Relations 408-542-5050 investor.relations@Finisar.com