Finisar Announces Fourth Quarter and Fiscal 2012 Financial Results
http://finance.yahoo.com/news/finisar-announces-fourth-quarter-fiscal-200000716.html
SUNNYVALE, CA--(Marketwire -06/11/12)- Finisar Corporation (FNSR), a global technology leader for subsystems and components for fiber optic communications, today announced financial results for its fourth quarter and fiscal year ended April 30, 2012.
COMMENTARY
"In our just completed fiscal fourth quarter, our revenues were $239.9 million. Continued strength in datacom revenues were offset by lower telecom revenues. The lower telecom revenues were primarily the result of sluggish carrier capital expenditures and the full three month impact of annual price reductions for telecom products. We were pleased that our gross margin for the quarter exceeded our guidance, resulting in earnings per diluted share which was at the upper end of our guidance range," said Jerry Rawls, Finisar's executive Chairman of the Board.
"We continued to invest in research and development and make good progress on a number of new innovative products, including additional customer qualifications of our tunable XFP transceivers and design wins for our Flexgrid wavelength selective switches, ROADM linecards, 40G and 100G products," said Eitan Gertel, Finisar's Chief Executive Officer. "While the current level of carrier capital expenditures has muted the near term revenue impact of these new products, we believe that this progress has set a strong foundation for revenue growth in the second half of 2012 and beyond."
FINANCIAL HIGHLIGHTS - FOURTH QUARTER ENDED April 30, 2012
Summary GAAP Results Fourth Third
Quarter Quarter
Ended Ended
April 30, 2012 Jan 29, 2012
-------------- --------------
(in thousands, except per
share amounts)
Continuing operations
Revenues $ 239,910 $ 242,954
Gross margin 27.3% 29.3%
Operating expenses $ 53,369 $ 59,794
Operating income $ 12,111 $ 11,308
Operating margin 5.0% 4.7%
Income $ 13,162 $ 8,909
Income per share-basic $ 0.14 $ 0.10
Income per share-diluted $ 0.14 $ 0.09
Basic shares 91,349 91,001
Diluted shares 94,780 94,032
Summary Non-GAAP Results (a) Fourth Third
Quarter Quarter
Ended Ended
April 30, 2012 Jan 29, 2012
-------------- --------------
(in thousands, except per
share amounts)
Continuing operations
Revenues $ 239,910 $ 242,954
Gross margin 31.4% 31.8%
Operating expenses $ 54,552 $ 53,289
Operating income $ 20,856 $ 23,973
Operating margin 8.7% 9.9%
Income $ 20,234 $ 21,878
Income per share-basic $ 0.22 $ 0.24
Income per share-diluted $ 0.21 $ 0.23
Basic shares 91,349 91,001
Diluted shares 98,528 97,781
(a) In evaluating the operating performance of Finisar's business, Finisar
management utilizes financial measures that exclude certain charges
and credits required by U.S. generally accepted accounting principles,
or GAAP, that are considered by management to be outside Finisar's
core operating results. A reconciliation of Finisar's non-GAAP
financial measures to the most directly comparable GAAP measures, as
well as additional related information, can be found under the heading
"Finisar Non-GAAP Financial Measures" below.
Operating Statement Highlights for the fourth quarter of fiscal 2012:
Revenues decreased to $239.9 million, down $3.0 million, or 1.3%, from $243.0 million in the preceding quarter, as continued strength in sales of datacom products was offset by lower telecom product revenue primarily as the result of sluggish carrier capital expenditure levels and a full three month impact of annual price reductions for telecom products most of which, as in prior years, went into effect in January.
Compared to the preceding quarter, the sale of products for datacom applications increased by $12.3 million, or 9.2%, and the sale of products for telecom applications decreased by $15.4 million, or (14.1)%.
Gross margin was 27.3% on a GAAP basis and 31.4% on a non-GAAP basis, compared to 29.3% and 31.8% in the preceding quarter reflecting the impact of the annual price reductions for telecom products over the full quarter.
GAAP operating income increased $0.8 million to $12.1 million, or 5.0% of revenues, compared to $11.3 million, or 4.7% of revenues in the preceding quarter.
Non-GAAP operating income decreased $3.1 million to $20.9 million, or 8.7% of revenues, compared to $24.0 million, or 9.9% of revenues, in the preceding quarter, due to slightly lower revenue levels and slightly higher operating expenses due to higher employee benefit and payroll tax amounts associated with the beginning of the calendar year.
Non-GAAP EBITDA decreased $1.1 million to $34.2 million, or 14.2% of revenues, compared to $35.2 million, or 14.5% of revenues in the preceding quarter.
Balance Sheet Highlights for the fourth quarter of fiscal 2012:
Cash and cash equivalents totaled $234.5 million at the end of the fourth quarter, compared to $218.3 million at the end of the preceding quarter.
At the end of the fourth quarter, Finisar had approximately $40.0 million in principal amount of convertible notes outstanding with a conversion price of $10.675 per share.
At the end of the fourth quarter, our Ignis subsidiary also had outstanding debt equivalent to approximately $3.2 million, which is reflected in Finisar's consolidated balance sheet.
FINANCIAL HIGHLIGHTS - FISCAL YEAR ENDED APRIL 30, 2012
Summary GAAP Results Fiscal Year Fiscal Year
Ended Ended
April 30, April 30,
2012 2011
------------ ------------
(in thousands, except per
share amounts)
Continuing operations
Revenues $ 952,579 $ 948,787
Gross margin 28.7% 32.9%
Operating expenses $ 234,018 $ 200,556
Operating income $ 39,326 $ 111,716
Operating margin 4.1% 11.8%
Income $ 38,140 $ 88,379
Income per share-basic $ 0.42 $ 1.10
Income (loss) per share-diluted $ 0.40 $ 1.00
Basic shares 90,823 80,582
Diluted shares 94,186 92,715
Summary Non-GAAP Fiscal Year Fiscal Year
Results (a) Ended Ended
April 30, April 30,
2012 2011
------------ ------------
(in thousands, except per
share amounts)
Continuing operations
Revenues $ 952,579 $ 948,787
Gross margin 31.9% 34.9%
Operating expenses $ 214,100 $ 183,294
Operating income $ 89,332 $ 147,744
Operating margin 9.4% 15.6%
Income $ 83,177 $ 138,748
Income per share-basic $ 0.92 $ 1.72
Income per share-diluted $ 0.87 $ 1.55
Basic shares 90,823 80,582
Diluted shares 97,935 92,715
Operating Statement Highlights for fiscal year 2012:
Revenues increased to $952.6 million, up $3.8 million, or 0.4%, from $948.8 million in the preceding year.
Compared to the preceding year, the sale of products for datacom applications increased by $59.0 million, or 12.3%, and the sale of products for telecom applications decreased by $55.2 million, or (11.7)%.
Gross margin was 28.7% on a GAAP basis and 31.9% on a non-GAAP basis, compared to 32.9% and 34.8% in the preceding year. The decrease in gross margin primarily reflects a decline in average selling prices, partially offset by reduced material costs, as well as under-utilization of certain manufacturing facilities, and consolidation of the financial results of Ignis, whose products have an average gross margin lower than the overall corporate average gross margin.
GAAP operating income decreased $72.4 million to $39.3 million, or 4.1% of revenues, compared to $111.7 million, or 11.8% of revenues in the preceding year. Decrease was the result of lower gross margin and an increase in operating expenses due to increases in employee related expenses, costs of materials associated with new product development, and the consolidation of financial results of Ignis.
Non-GAAP operating income decreased $58.4 million to $89.3 million, or 9.4% of revenues, compared to $147.7 million, or 15.6% of revenues.
Non-GAAP EBITDA decreased $48.2 million to $135.2 million, or 14.2% of revenues, compared to $183.4 million, or 19.3% of revenues in the preceding year.
OUTLOOK
The Company indicated that it currently expects revenues for the first quarter of fiscal 2013 to be in the range of $218 to $233 million; GAAP operating margin to in the range of approximately 0.5% to 2.0%; non-GAAP operating margin to be in the range of approximately 5.5% to 7.0% and non-GAAP earnings per diluted share to be in the range of approximately $0.11 to $0.15.
