08 Sep 2014
Q1 Sales of $327.6m are all-time company record – but income forecast to slip in the second quarter.Finisar, Sunnyvale, CA, USA, a developer of systems and components for fiber optic communications, has announced financial results for its first quarter of fiscal 2015, which ended July 27, 2014.
Jerry Rawls, Finisar's executive Chairman of the Board, said, “I am pleased to report that first quarter revenues were $327.6 million, a new all-time record for the company. Quarterly revenues increased by $21.6 million, or 7.1%, over the fourth fiscal quarter of fiscal 2014. Quarterly revenues grew for the eighth consecutive quarter."
"While demand for our transceivers that address wireless applications was very strong in the first quarter, demand for these products is now expected to decrease in the second quarter. We expect the demand to return and revenues to increase sequentially for these products in the third quarter.”
Eitan Gertel, Finisar's Chief Executive Officer, added, “As a result of this decrease in demand for wireless transceivers, as well as a decrease in demand for telecom products due to soft carrier spending and a decrease in demand from several datacom customers with lumpy order patterns, we expect our overall revenues to decline in the second fiscal quarter."
• Revenues increased to $327.6m, up $21.6m (7.1%) in the preceding quarter.
• The sale of products for datacom applications increased by $18.2m (8.2%), primarily as the result of strong demand for our transceivers that address wireless applications.
• Sales of products for telecom applications increased by $3.4m (4.1%).
• Non-GAAP gross margin decreased to 32.0% from 34.2%.
• Non-GAAP operating expenses increased to $69.4m from $65.9m.
• Non-GAAP operating income decreased $3.5m to $35.4m, (10.8% of revenues).
Acquisition of LightSmyth
During the quarter, Finisar completed the acquisition of LightSmyth Technologies, Inc. of Eugene Oregon, a specialist in the use of semiconductor manufacturing tools to produce differentiated grating products. LightSmyth previously was a supplier of grating products for Finisar's WSS and ROADM products.
The company indicated that for Q2 2015 it currently expects revenues in the range of $305 to $320m, a non-GAAP gross margin of 31% to 32%, non-GAAP operating margin of approximately 8.5% to 9.5%, and non-GAAP earnings per diluted share in the range of approximately $0.23 to $0.27.
About the Author
Matthew Peach is a contributing editor to optics.org.