SUNNYVALE, Calif. -- Finisar Corporation (Nasdaq:FNSR), a technology leader in gigabit fiber optic solutions for high-speed data networks, today reported financial results for its second quarter ended October 31, 2001.

Total revenues for the second quarter of fiscal 2002 of $35.1 million were down 21% from the second quarter of fiscal 2001 but up 3% on a sequential basis from the immediately preceding quarter. Total revenues include sales of optical components and subsystems of $25.2 million and sales of network test and monitoring systems of $9.9 million. Sales of optical components and subsystems were down 32% from the second quarter of fiscal 2001 and were relatively flat on a sequential basis. Sales of network test and monitoring systems were up 37% from the second quarter of fiscal 2001 and were up 12% on a sequential basis.During the quarter, the Company recognized a number of non-cash and cash charges related to deferred compensation and acquisitions. In addition, the Company recorded a gain related to product development work in connection with the sale of its Opticity product line to ONI Systems, Inc., during the fourth quarter ended April 30, 2001. The Company also recorded a charge in the second quarter associated with a decline in the underlying value of shares of common stock received as partial consideration in that sale. Pro forma results exclude these items for comparison purposes.For the second quarter of fiscal 2002, the Company recognized a pro forma net loss of $9.1 million, or $0.05 per diluted share, compared to a pro forma income of $7.5 million, or $0.04 per diluted share, in the second quarter of fiscal 2001 and a pro forma net loss of $8.3 million, or $0.05 per diluted share, in the previous quarter.``We continue to believe that we saw the bottom during the first quarter ended July 31, 2001, and that our business prospects are improving,” said Jerry Rawls, Finisar’s President and CEO. “In the meantime, we are aggressively moving our manufacturing operations to Malaysia, completing the development of a number of important new products and continuing to make inroads at new customers.”Finisar Corp.