Demand For Bandwidth May Boost Finisar's Q4

(RTTNews) - Finisar Corp. (FNSR), a global technology leader in high-speed optical communications, continues to believe that the long-term growth prospects and the optical communications industry are positive. In fiscal 2017, the company is expected to benefit from the increased sales of many new products driven by both data center construction and upgrades and increased deployment of ROADMs and the 100-gig, 200-gig coherent transceivers in telecom long-haul and metro.

Finisar's revenue is primarily driven by growth in the global demand for bandwidth from the increasing distribution and use of video, images and digital information. In addition, Finisar continues to benefit from the growth in cloud services which drives networking hardware upgrades of existing data centers and the construction of new hyperscale data centers.

The company is scheduled to release its fourth-quarter results after the bell on Thursday, June 16, with analysts polled by Thomson Reuters expecting earnings of $0.25 per share on revenue of $317.38 million. Analysts' estimate typically exclude certain special items.

The company sees fourth-quarter revenues in the range of $307 million - $327 million, non-GAAP gross margin of about 30%, non-GAAP operating margin of about 8.2% - 9.2%, and non-GAAP earnings per share in the range of about $0.22 - $0.28.

Finisar anticipates strong growth from China, due to the continued long haul and wireless buildouts at China Telecom, China Unicom and China Mobile, as well as strength in North America from the expansion of next generation metro networks. It also expects telecom revenue growth in Q4 from Europe and the Middle East.

In the last quarter, the company reported net income of $12.1 million or $0.11 per share compared to $1.68 million or $0.02 per share in the prior year period.

Adjusted non-GAAP net income was $26.6 million or $0.25 per share versus $26.7 million or $0.25 per share reported a year ago.

Revenues increased to $309.2 million from $306.3 million generated in the same period of last year.

"Revenues for our third fiscal quarter were $309.2 million, approximately in line with the midpoint of our prior guidance range for the quarter of $300 to $320 million. Better than expected gross margins, due to favorable product mix, as well as lower than expected operating and other expenses, resulted in earnings per fully diluted share at the upper end of our prior guidance range," said Jerry Rawls, Finisar's Chief Executive Officer.