Telecommunications-equipments and solutions provider, Finisar Corporation (NASDAQ: FNSR) reported late last evening that it swung into a loss in its fiscal third quarter bottom line felt the pinch due to dip in revenue and higher expenses.
However, on adjusted basis, earnings edged past Street’s consensus by a penny and the company also provided outlook on the current which matched analysts’ expectation, sending shares higher about 3% in aftermarket hours.
For the fourth quarter, the Sunnyvale, California-based Company anticipates earnings to be in the range of 15 cents to 19 cents a share on revenue of $235 million to $250 million. Analysts’ consensus estimate was for earnings of 17 cents a share on revenue of $241 million, according to a data compiled by Thomson Reuters.
Finisar, which is United State’s second biggest fiber-optic equipment maker following to JDS Uniphase Corp. has felt the pressure both on its top line and bottom line in recent quarters due to weakness in demand from some telecom players.
Earlier in January, analysts at Jefferies had cut Finisar’s rating to “underperform”, citing a looming threat to the company’s Datacom business after Intel revealed that it has capability in building 100G transceivers at “high volume” coupled with a “good yield”. Back then Jefferies also said that the Company faces increasing threat from the likes of CISCO and some other companies as they could launch competing silicon photonics-based transceivers the current year or next year.
For the fiscal third quarter ended January 27, the Company reported a loss of $3.4 million, or 4 cents a share, compared to a profit of $8.9 million, or 9 cents a share, in the year-earlier quarter.
Stripping out onetime items such as acquisition related costs, adjusted or non-GAAP earnings came at 17 cents a share down from 23 cents a share, in the same period of last year.
Revenue during the quarter contracted 1.9% to $238.4 million.
Back in December, Finisar provided earnings guidance of 14 cents a share to 18 cents a share on revenue of $230 to $245 million.
Gross margins shrank to 28.5% from 29.3%, in the same quarter of last fiscal.
Operating expenses rose 15% as the company took a charge of $4.9 million towards asset-impairment and higher R&D costs.