Optical components

Finisar Tanks Guidance (Again)

Finisar Corp. (Nasdaq: FNSR) reported a healthy-looking profit Tuesday afternoon, but for the second time in a row, the company also sent out a warning about revenues.

For its fourth quarter, which ended April 30, Finisar reported revenue of US$236.9 million and net income of $16.4 million, or 17 cents per share. (See Finisar Reports Q4.)

Analysts were expecting revenues of $242.8 million, according to Thomson Reuters . Non-GAAP net income of 33 cents per share matched the analyst consensus.

The big news, though, was that Finisar said its revenues for the first quarter, which ends in July, won't make the cut. Finisar expect revenues between $215 million and $230 million; analysts were expecting $252 million. The news halted trading of Finisar's shares as the market closed.

It's the second time in a row that Finisar's outlook has been a disappointment. Three months ago, the company told analysts that fourth-quarter revenues would be less than the $269 million they'd previously expected, signifying, among other things, an apparent slowdown in optical demand from China. That news drove the consensus prediction down to $242.8 million. (See OFC/NFOEC 2011: Finisar Drops the Bomb.)

— Craig Matsumoto, West Coast Editor, Light Reading

Pete Baldwin 12/5/2012 | 5:01:45 PM
re: Finisar Tanks Guidance (Again)

After-hours trading started up as the story went to edit... Finisar's down 15% after hours, JDSU and Oclaro down about 5%.

Other optical stocks are about even.

Riverhigh 12/5/2012 | 5:01:44 PM
re: Finisar Tanks Guidance (Again)

Interesting conference call and I will be waiting on the transcript  as I believe Eitan Gertel (Finisar CEO) was caught in an outright lie when he denied knowledge of the JDSU superblade. The JDSU AON superblade is well known in the industry. It appeared to me that Eitan Gertel broke down under tough questioning from one of the analysts and became extremely defensive. This is unfortunate as it lessens the credibility of what he said afterwards.

Pete Baldwin 12/5/2012 | 5:01:44 PM
re: Finisar Tanks Guidance (Again)

Yeah, that was an odd moment. "I don't know exactly what is an 'AON Superblade.' I don't know what that is." My first impression was that he was joking, actually. He's got a pretty dry sense of humor.

alcabash 12/5/2012 | 5:01:41 PM
re: Finisar Tanks Guidance (Again)

well... if you believed Jerry Rawls ...shame on you...he does it every year (actually twice this year)...cannot believe people still listen to him

Steve0616 12/5/2012 | 5:01:39 PM
re: Finisar Tanks Guidance (Again)

Who to listen to then? The sector is impossible to invest in. 

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