Finisar Profit In Line; Stock Down On Weak Guidance - Update

(RTTNews) - Telecommunications equipment make Finisar Corp (FNSR), Thursday reported a lower first-quarter profit, hurt by weak gross margin that offset growth in revenue. Adjusted earnings were in line with Wall Street estimates, while revenue missed expectations.

The company provided a weak guidance for the current quarter, citing soft demand for wireless transceivers and telecom products. Finisar shares fell 5 percent in after-hours trade on the Nasdaq.

Finisar, based in Sunnyvale, California, posted quarterly net earnings of $14 million or $0.14 per share, compared with $26 million or $0.26 per share last year.

Excluding items, adjusted earnings for the quarter were $0.32 per share. On average, 15 analysts polled by Thomson Reuters projected earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose to $327.6 million from $266 million a year ago, but missed analysts' expectations of $328.7 million.

Gross margin for the quarter slid to 30.2 percent from 34.2 percent last year. Also there was an increase in interest expense to $3.1 million from $0.6 million last year.

For the second quarter, Finisar expects adjusted earnings of $0.23 to $0.27 per share and revenues of $305 million to $320 million. Analysts currently expect earnings of $0.35 per share on revenues of $337.5 million for the second quarter.

Finisar stock closed Thursday at $18.37, down $0.52 or 2.75%, on a volume of 6.2 million shares. In after hours, the stock dropped $0.83 or 4.52%.