Post-Earnings Research - Finisar

LONDON, September 9, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings research on Finisar Corp. (NASDAQ: FNSR). The company featured in the headlines on Thursday, September 04, 2014 after reporting financial results for Q1 FY15 ended July 27, 2014. During Q1 FY15, while Finisar Corp.'s revenue grew 7.1% Q-o-Q, GAAP basic EPS decreased by $0.16 from Q4 FY14. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview  

During Q1 FY15, Finisar Corp.'s revenue reached an all-time record of $327.64 million, up from $306.02 million in Q4 FY14. The sale of products for datacom applications for Q1 FY15 increased 8.2% from the previous quarter mostly driven by strong demand for transceivers that address wireless applications. In addition, the sale of products for telecom applications also grew 4.1% QoQ. Analysts from Bloomberg had anticipated total revenue of $326.08 million for the reported quarter. However, Finisar Corp.'s GAAP basic EPS attributable to its common stockholder decreased to $0.14 per share in Q1 FY15 from $0.30 in the preceding quarter. For the reported quarter, Bloomberg's analysts were expecting an EPS of $0.23 million. On a non-GAAP basis, the company's basic EPS for Q1 FY15 declined to $0.34 from $0.38 in Q4 FY14. Further, the company's GAAP gross margin for Q1 FY15 decreased to 30.2%, from 31.6% in the previous quarter mainly due to less favorable product mix which was primarily a result of increased sales of transceivers, lower sales of 100G ethernet transceivers, as well as a rise in depreciation due to an increased level of capital expenditure. The free research on FNSR can be downloaded as in PDF format at:

www.Investor-Edge.com/FNSRFreeReport

During Q1 FY15, Finisar Corp. completed the acquisition of LightSmyth Technologies Inc., a company known for pioneering the use of semiconductor manufacturing tools to produce differentiated, high performance and cost-effective grating products. It was previously a supplier of grating products for Finisar's WSS (Wavelength Selective Switches) and ROADM products. The Company stated that the acquisition has enhanced Finisar's vertical integration strategy.

Commenting on the results, Finisar Corp.'s executive Chairman of the Board, Jerry Rawls, said that record revenues were achieved during the quarter and these revenues grew for the eight consecutive quarter. Further, CEO Eitan Gertel stated that while the demand for its transceivers that address wireless applications was very strong in Q1, it is likely to decline in Q2. However, the company anticipates demand to turn around and revenues to increase sequentially for these products in Q3. As a result of reduced 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, the company expects its overall revenues to decline in the second fiscal quarter. Sign up and read the free analyst's notes on FNSR at:

www.Investor-Edge.com/FNSR-09092014

For Q2 FY15, the company projects revenues in the range of $305 million to $320 million, non-GAAP gross margin in the range of approximately 31% to 32%. In addition, the company's non-GAAP operating margins are anticipated in the range of approximately 8.5% to 9.5%, and non-GAAP EPS in the range of approximately $0.23 to $0.27.

Stock Performance  

On Friday, September 05, 2014, a day after the earnings release, Finisar Corp.'s stock was down by 4.68%, ending the session at $17.51. The stock lost a further 0.91% the following day, finishing at $17.35 on the last close, Monday, September 08, 2014. The stock vacillated between $17.24 and $17.52 during the trading session. A total of 3.34 million shares were traded, which was above its three months average volume of 2.70 million shares. Over the previous three trading sessions and over the last one month, the company's shares have fallen by 8.15% and 10.75%, respectively. Moreover, the stock has declined 27.47% from the beginning of 2014. Finisar Corp.'s shares are trading below their 50-day and 200-day moving averages of $19.88 and $22.73, respectively. Further, the stock traded at a PE ratio of 18.49 and has a Relative Strength Index (RSI) of 29.85. Visit Investor-Edge and access the latest research on FNSR at:

www.Investor-Edge.com/FNSREarningsCoverage

Sneak Peek to Corporate Insider Trading  

In the last one month, Finisar Corp. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on FNSR is available at:

www.Investor-Edge.com/FNSRInsiderTrading

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