Finisar Profit In Line With Estimates; Outlook Strong

(RTTNews) - Telecommunications equipment make Finisar Corp (FNSR) on Thursday reported third-quarter net earnings of $1.7 million or $0.02 per share compared with $27 million or $0.26 per share last year.

Excluding items, adjusted earnings for the quarter were $0.25 per share compared with $0.44 per share a year ago.

Analysts polled by Thomson Reuters estimated earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

The company said profit was mainly hurt by a drop in gross margin to 25.5% from 35.9% last year, hurt by the annual telecom price reductions and low yields on a new optical engine product. Operating margin fell to 1.1% from 11.3%.

The company's revenues for the quarter were higher at $306.3 million compared with $294 million in the prior year. Analysts estimated revenues of $305.8 million.

Revenue growth was driven by the demand for 40 gigabit and 100 gigabit transceivers for datacom applications, as well as transceivers for wireless applications.

For the fourth quarter, the company expects adjusted earnings of $0.22 to $0.28 per share on revenues of $310 million to $330 million. Analysts expect earnings of $0.23 per share on revenues of $308 million.