Finisar Corporation (FNSR)

[Kirk]

4:29PM Finisar reports EPS in-line, beats on revs; guides Q4 EPS, revs below consensus (FNSR) 40.04 : Reports Q3 (Jan) earnings of $0.47 per share, excluding non-recurring items, in-line with the Thomson Reuters consensus of $0.47; revenues rose 57.6% year/year to $263 mln vs the $257.9 mln consensus. Non-GAAP gross margin decreased to 34.7% of revenues from 35.5% in the preceding quarter but increased from 32.2% in the third quarter of the prior year. Co issues downside guidance for Q4, sees EPS of $0.31-0.35, excluding non-recurring items, vs. $0.48 Thomson Reuters consensus; sees Q4 revs of $235-250 mln vs. $268.55 mln Thomson Reuters consensus. During Q4, the co will be impacted by the full three months of the annual price negotiations with telecom customers that typically take effect on January 1, the 10-day long shutdown at certain customers for Chinese New Year in February, the adjustment of inventory levels at some telecom customers, particularly for products which had previously been on allocation and long lead times, including WSS and ROADM line cards, and a slowdown in business in China overall.