Finisar Preps Layoffs

SUNNYVALE, Calif. -- Finisar Corporation (NasdaqGS:FNSR - News), a global technology leader for fiber optic subsystems and network test systems, today announced that revenues for the third fiscal quarter ended February 1, 2009 will be approximately $137 million, down approximately $22 million, or 14%, from $159.5 million in the second quarter and below its previous outlook, which had called for a 5%-10% decline in revenues. Third quarter revenues are still expected to show an increase of approximately $25 million, or 22%, over the third quarter of the prior year due primarily to the Company's combination with Optium Corporation in August 2008. The Company indicated that its revenue shortfall from earlier expectations was broad-based across all product lines with the notable exception of products for 40Gbps and short distance 10Gbps applications.

The Company said it continued to make progress with respect to additional new product customer qualifications during the past quarter. The following were among the qualifications that were achieved during the third quarter:

However, in light of the current economic environment, the Company urged caution in assuming that additional revenues resulting from these product qualifications will be sufficient to offset a further decrease in revenues from existing products in its upcoming fourth quarter ending April 30, 2009. In addition, the Company noted that many of its customers were electing to carry less inventory, thus contributing to the current softness in orders.

Finisar Corp. (Nasdaq: FNSR)