Optical components

Finisar: Another Down Day

3:00 PM -- Finisar Corp. (Nasdaq: FNSR) is having a bad day on the stock market -- down 34 cents (22.4%) at $1.18 in early afternoon trading.

The company's third quarter earnings, reported yesterday, hit the upwardly revised predictions Finisar had set. (See Finisar Reports Q3 and Finisar Updates Q3.) But the fourth quarter could end up flat, and that might be why the market has turned against the company.

Finisar's official forecast is for $113 million to $120 million in fourth-quarter revenues, up from $112.2 million in the third quarter -- potential growth of 7 percent. As of this writing, Reuters Research lists the analysts' consensus estimate at just $113.4 million.

Finisar has had to pre-announce three of its last four quarters. (See Finisar's Down Day.) Sure, the most recent of those was an upwards adjustment, but it still shows there's unpredictability in Finisar's business.

During OFC/NFOEC last week, we managed to sit CEO Jerry Rawls down to talk about that, and about the state of the optical components industry in general. You can see the results here.

— Craig Matsumoto, West Coast Editor, Light Reading

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