Finisar Sees Hope
That's because Finisar, while forecasting a revenue drop during Tuesday's earnings call, expects things to perk up in its fourth quarter, which ends in April. (See Finisar Reports Q2.)
Finisar says a batch of products is set to reach customer qualification by then.
"They will start into production in the fourth quarter. So, it is new products that will give us that boost in the fourth quarter," chairman Jerry Rawls said on the company's earnings call with analysts.
Among those products is a GPON OLT transceiver that has "been approved by a major telecom equipment company," and "at least a dozen" ROADM qualifications that are in process, Finisar CEO Eitan Gertel said during the call.
And the company expects 40-Gbit/s product revenues to keep rising, both in the third and fourth quarters. Finisar isn't specifying how big those revenues are, though.
Additionally, Finisar says it's being cushioned by its storage-networking business. Rawls said they're talking about flat or even slightly increasing revenues, as opposed to the gloom felt by telecom. (See Cisco Predicts Q2 Plunge.)
So, here's how Finisar sees it playing out. The company reported revenues of $159.5 million for its second quarter, which ended Nov. 2. It's expecting third-quarter revenues to fall below that figure, but fourth-quarter revenues should bounce back up to second-quarter levels.
It still comes out to a near-term disappointment, because for that third quarter, analysts were hoping for revenues of $176.2 million, according to Thomson First Call .
Finsar's stock was down 6 cents (13%) at 41 cents per share in early after-hours trading yesterday.
— Craig Matsumoto, West Coast Editor, Light Reading