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Shares in fiber optics leader Finisar inch up after record revenue

Published 06/18/2015, 07:37 PM
Updated 06/18/2015, 07:43 PM
Fiber optics company Finisar posted record revenues in FY '15, amid increased non-GAAP margin
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Investing.com -- Shares in Finisar Corporation (NASDAQ:FNSR), a global leader for subsystems and components for fiber optic communications, inched up in after-hours after the California-based company posted record revenues for the fiscal year 2015 on Thursday.

For Finisar's latest quarter which ended in early-May, the company earned profits of $7.3 million of 0.07 per share in comparison with $28.8 million or 0.28 in the same period a year earlier. The combination of telecom rate cuts and increased competition from its rivals dented Finisar's earnings. The annual rate cuts typically take place during the first month of the year, Finisar said.

Nevertheless, Finisar earned revenues of $320.0 million for its fourth quarter, an increase of $13.8 million, or a 4.5% increase compared to the prior quarter.

"Revenue growth was primarily driven by the benefit from an extra week in the fourth quarter partially offset by the impact of Chinese New Year," Finisar CEO Jerry Rawls said in a statement.

The revenue spike over the last 13 weeks helped contribute to record annual revenues for the company of $1.25 billion, up 8.1% from $1.156 billion in 2014. Finisar's non-GAAP gross margin rose slightly to 30.3% for fiscal year 2015, primarily due to increased yields from its optical engine product for supercomputing applications. The company intensified production of the application throughout the third quarter.

For the first quarter of fiscal year 2016, Finisar anticipates earning revenue of $308 to $328 million and non-GAAP earnings of 0.23 to 0.29. The projections are in line with analysts' forecasts of $320.5 million and 0.25 per share.

Shares in Finisar gained 0.04 or 0.18% to 22.15 in after-hours trading. Previously, Finisar shares were up approximately 12% this year.

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