Finisar announces second quarter, 2018 financial results

News and Business

Finisar, a developer of components for fibre optic communications, has announced financial results for its second fiscal quarter, ended October 29, 2017.

“We experienced strong demand in our second fiscal quarter for our 100G QSFP28 transceivers for data centres,” said Jerry Rawls, Finisar’s CEO. “However, our overall revenues for the second fiscal quarter were $332.2 million, a decrease of $9.6 million, or 2.8%, compared to the first quarter of fiscal 2018. This decline was primarily due to lower revenues from our Chinese OEM customers.

“Also, during the second quarter, we began shipping production quantities of our VCSEL arrays for 3D sensing. In addition, after the end of the quarter, we acquired an approximately 700,000 square foot facility in Sherman, Texas. In the second half of calendar year 2018, we expect this facility will allow us to produce VCSEL arrays using 6″ wafers for both consumer and automotive applications.”

Q2 highlights
Sales of datacom products decreased by $1.7 million, or (0.7)%, compared to the first quarter of fiscal 2018, primarily from lower demand for 10G and below transceivers, 40G QSFP transceivers, and 100G CFP ethernet transceivers. This was partially offset by an increase in sales of 100G QSFP28 transceivers as well as new revenues from VCSEL arrays for 3D sensing.

Sales of telecom products decreased by $7.9 million, or (9.5)%, compared to the first quarter of fiscal 2018, primarily driven by lower revenues from our Chinese OEM customers.

Non-GAAP gross margin was 30.3% compared to 34.9% in the first quarter of fiscal 2018. Non-GAAP operating margin was 7.8% compared to 13.5% in the first quarter of fiscal 2018. Non-GAAP income per fully diluted share was $0.23 compared to $0.40 in the first quarter of fiscal 2018.

Finisar indicated that for the third quarter of fiscal 2018 it currently expects revenues in the range of $325 to $345 million, non-GAAP gross margin of approximately 30%-31%, non-GAAP operating margin of approximately 7.5% -8.5%, and non- GAAP earnings per fully diluted share in the range of approximately $0.21 to $0.27.

The company did not provide a reconciliation of its third quarter outlook for non-GAAP gross margin, non-GAAP operating margin and non-GAAP earnings per fully diluted share because estimates of all of the reconciling items cannot be provided without unreasonable efforts.