Finisar Corporation (NASDAQ: FNSR) said late last evening that its fiscal fourth-quarter net income slumped 78% as acquisitions related write-downs and charges offset the communication solution provider’s improved revenue growth and higher margin.
However, shares rallied about 11.50% in afterhours trading as the Company provided upbeat guidance for the current while adjusted earnings for the recently concluded quarter exceeded analysts’ consensus estimate.
Commenting over the results, Finisar Corp’s Chief Executive Eitan Gertel said to analysts in a conference call, “During the quarter, we continued to invest significantly in technology and product development and made substantial progress on a number of new products for our datacom and telecom products lines.”
For the fiscal first quarter, the Sunnyvale CA based Company, which provides fiber optic subsystems and network performance test systems, expects adjusted earnings to be in the range of 22 cents to 26 cents a share on revenue of $245 to $260 million. Analysts’ consensus estimate was for earnings of 20 cents a share on revenue of $249 million, according to a data compiled by Thomson Reuters.
For the fiscal fourth quarter ended April 28, Finisar reported net income of $3.9 million or 4 cents a share compared to a profit of $18 million or 19 cents a share, in the same period of last year.
Excluding onetime items such as acquisition related charges and write-downs, the Company earned 20 cents a share a penny lower than the same quarter of last year’s non-GAAP (adjusted) earnings.
Revenue edged up 1.5% to $243.4 million. Earlier in March, Finisar provided earnings guidance of 15 cents to 19 cents a share on revenue of $235 million to $250 million.
Gross margin widened to 27.7% to 27.3%.
“Our favorable product mix in the quarter enabled us to achieve gross margin and earnings per diluted share that exceeded our guidance range,” said the Company’s Chairman Jerry Rawls.
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