Earnings Review and Free Research Report: Finisar’s Revenue Grew 12%, GAAP EPS Rocketed 842%

LONDON, UK / ACCESSWIRE / June 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Finisar Corp. (NASDAQ: FNSR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FNSR, following the Company’s reporting of its fourth quarter and fiscal 2017 financial results on June 15, 2017. The global technology leader for subsystems and components for fiber optic communications met earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at: http://protraderdaily.com/register/.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FNSR. With the links below you can directly download the report of your stock of interest free of charge at: http://protraderdaily.com/optin/?symbol=FNSR.

Earnings Reviewed

For the fourth quarter ended April 30, 2017, Finisar generated revenues of $357.5 million, down 6% compared to revenue of $380.6 million in Q3 FY17, and ahead of revenue of $318.80 million in Q4 FY16. The q-o-q decline was attributed to a drop in telecom revenues due to lower revenues from its Chinese OEM customers and the impact of the full three months of the annual telecom price erosion. Finisar’s revenue number fell short of analysts’ expectations of $362.3 million.

Finisar’s revenues for FY17 totaled $1.45 billion, an all-time record for the Company, reflecting an increase of 14.7%, over revenue of $1.26 billion in FY16.

During Q4 FY17, sales of Finisar’s datacom products fell 1.1% on a q-o-q basis. The Company’s sales of 100G QSFP28 transceivers for datacom applications increased over 30% compared to the prior quarter, however, this increase was more than offset by lower demand for other datacom products, primarily the Company’s 10G and below shortwave transceivers. In Q4 FY17, Finisar’s sales of telecom products decreased by 18.2% on a sequential basis.

During FY17, sales of Finisar’s products for datacom applications increased by 12.1% on a y-o-y basis primarily due to growth in demand for 100G transceivers, which grew over 80% compared to the prior year. The Company’s sales of products for telecom applications surged 22.0%, compared to the preceding year primarily driven by growth in the demand for 100G.

Finisar’s GAAP gross margin was 35.0% compared to 35.9% in Q3 FY17, primarily due to the impact of the full three months of the annual telecom price erosion and 28.4% in Q4 FY16. The Company’s non-GAAP gross margin was 36.2% compared to 37.0% in the previous quarter.

During Q4 FY17, Finisar’s GAAP operating expenses were $84.3 million compared to $81.7 million in Q3 FY17 and $76.31 million in Q4 FY16. The Company’s non-GAAP operating expenses for the reported quarter totaled $71.0 million compared to $70.5 million in the previous quarter.

Finisar’s GAAP operating margin was 11.4% in Q4 FY17 compared to 14.4% in Q3 FY17. The Company’s non-GAAP operating margin was 16.3% in the reported quarter compared to 18.5% in the prior quarter.

Finisar’s GAAP earnings per fully diluted share were $1.13 in Q4 FY17 compared to $0.40 in Q3 FY17 and $0.12 per diluted share in Q4 FY16. In the reported quarter, the Company realized a non-cash benefit of $103.3 million to the GAAP income tax provision due to the release of a significant portion of its valuation allowance against certain US deferred tax assets. Finisar’s non-GAAP earnings per fully diluted share were $0.50 compared to $0.59 in the previous quarter primarily due to the lower revenue levels. The results matched Wall Street’s expectations for earnings of 50 cents per share.

During FY17, Finisar’s GAAP earnings per fully diluted share was $2.19 compared to $0.32 in the preceding year. During fiscal 2017, the Company realized a non-cash benefit of $103.3 million. Finisar’s non-GAAP earnings per fully diluted share were $2.03 in the reported quarter compared to $1.01 in the year ago same period.

Cash Matters

Finisar’s cash, cash equivalents, and short-term investments increased $674.3 million to $1.2 billion at the end of FY17 compared to $562.5 million at the end of FY16. This increase was primarily due to the issuance of $575.0 million of 0.50% convertible notes due in December 2036, which yielded net proceeds of $569.3 million. Excluding those net proceeds, the Company’s cash would have increased $105.0 million during the year.

Outlook

During Q1 FY18, Finisar indicated that it currently expects revenues in the range of $330 million to $350 million, non-GAAP gross margin of approximately 35%, non-GAAP operating margin of approximately 14%, and non-GAAP earnings per fully diluted share in the range of approximately $0.37 to $0.43.

Stock Performance

On Thursday, June 29, 2017, the stock closed the trading session at $26.24, dropping 3.07% from its previous closing price of $27.07. A total volume of 3.01 million shares have exchanged hands. Finisar’s stock price soared 6.41% in the last one month and 51.68% in the previous twelve months. The stock is trading at a PE ratio of 12.06 and currently has a market cap of $2.93 billion.

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