There was a Reverse split with FNSR,JDSU etc?
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UPDATE: Finisar 3Q Profit More Than Triples; 4Q Forecast Weak
Date : 03/08/2011 @ 7:20PM
Source : Dow Jones News
Stock : Finisar Corp. (FNSR)
Quote : 25.95 -14.09 (-35.19%) @ 7:22AM
UPDATE: Finisar 3Q Profit More Than Triples; 4Q Forecast Weak
Finisar Corp. (MM) (NASDAQ:FNSR)
Intraday Stock Chart
Today : Wednesday 9 March 2011
Click Here for more Finisar Corp. (MM) Charts.
(Updates to include context about share price drop in paragraphs 1 and 2, more details on Finisar's forecast in paragraph 3, comments from an executive in paragraphs 4, 5 and 6, and market commentary in paragraph 7.)
Finisar Corp.'s (FNSR) fiscal third-quarter earnings more than tripled and adjusted results were in line with company estimates, but shares of the fiber-optic equipment maker tumbled more than 30% after-hours after it offered a weak forecast for the current quarter.
Shares of the Sunnyvale, Calif.-based company sagged 35.2%, to $25.94 in the after-hours session, after the company said current-quarter earnings would likely be between 31 cents to 35 cents a share on revenue of $235 million to $250 million. Analysts surveyed by Thomson Reuters expect 48 cents on $269 million.
Finisar blamed the weak fourth-quarter forecasts on price negotiations with its telecom customers that usually take effect Jan. 1, as well as a 10-day shutdown at certain customers for Chinese New Year in February. It also said expected inventory adjustments had affected its view.
In a conference call to discuss the earnings, Executive Chairman Jerry S. Rawls said the fundamentals for his company remained strong, even though it faced a tough patch.
"The underlying drivers for bandwidth and our position as the industry leader continue to remain strong," Rawls said, according to a transcript of the call. "However, for next quarter there are some contrary factors at work."
In addition to the price reduction negotiated for telecoms customers, Rawls said the company expected some of its thicker margin products wouldn't sell as well.
However, Rawls cited LightCounting LLC statistics that suggest the company's addressable markets will grow 15% to 20% over the next three years.
Shares of chief competitor JDS Uniphase Corp. (JDSU) also plunged 14%, to $21.85 in after-hours action. Another optical company, Oclaro Inc. (OCLR), saw shares drop 13%, to $14.50 after hours.
The second-biggest fiber-optic equipment maker behind JDS has seen its results improve of late, amid what the company has called a "very strong" market environment. The company also has boosted its margins in recent quarters.
For the quarter ended Jan. 30, Finisar reported a profit of $18.8 million, or 22 cents a share, up from $5.5 million, or 8 cents, a year earlier. Excluding items such as stock compensation, debt conversion expense and a litigation settlement, earnings were 47 cents, up from 17 cents. Revenue jumped 58%, to $263 million.
The company in December had forecast earnings of 45 cents to 47 cents on revenue of $247 million to $262 million, above analysts' views at the time.
Gross margin rose to 32% from 31%.
Finisar shares closed at $40.04, and have more than tripled in value in the past year.
-By Nathan Becker and Andrew Morse, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;
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