Product category:
Optical Transceivers, Transponders and Repeaters
News Release from: Finisar Corp
Edited by the Electronicstalk Editorial
Team on 13 June 2003
Finisar revenues increase despite
environment
Finisar Corp has reported its financial results for its fourth quarter and fiscal year ended 30th April 2003.
Finisar Corp has reported its financial results for its fourth quarter and fiscal year ended 30th April 2003 Total revenues of $39.8 million in the fourth quarter of fiscal 2003 were up 3% on a sequential basis from $38.7 million in the third quarter but down 6% from $42.1 million in the fourth quarter of the prior year
This article was originally published on Electronicstalk on 13 Nov 2007 at 8.00am (UK)
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Total revenues from the sale of optical components and subsystems of $33.4 million in the fourth quarter were up 5% on a sequential basis from $31.9 million in the third quarter but down 2% from $34.1 million in the fourth quarter of the prior year.
Sales of network test and monitoring tools of $6.4 million in the fourth quarter were down 7% on a sequential basis from $6.8 million in the third quarter and 21% from $8.0 million in the fourth quarter of the prior year.
The company also reported that cash and short-term investments increased by $8.9 million to $119.4 million as of 30th April 2003, from $110.5 million as of 31st January 2003.
Further reading
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Finisar's angled receptacle isolators provide an efficient, cost-effective means to protect laser components from unwanted back-reflections.
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Fabry-Perot laser diodes substantially reduce overall transceiver power consumption.
Transmitters offer long reach and high power
The DM80 and DM200 are the world's first narrowly tunable 10Gbit/s transmitters to offer long reach and high output power in a 13-pin butterfly package.
The balance at 30th April 2003 does not include an additional $10 million of investments held in escrow to meet interest payment obligations under the company's outstanding convertible subordinated notes.
The increase in cash during the quarter was due primarily to receipt of a tax refund of $8.5 million.
The company reported a gross margin of 13.3% during the fourth quarter of fiscal 2003, down 3.5% from 16.8% in the fourth quarter of fiscal 2002.
A pretax loss of $26.1 million for the fourth quarter of fiscal 2003 was less than the $51.7 million pretax loss in the fourth quarter of fiscal 2002 principally as a result of the discontinuance of amortisation of goodwill and the write down of certain intangible assets, partially offset by restructuring charges related to the company's planned closure of its Demeter Technologies subsidiary in the first quarter of fiscal 2004.
The company recorded a net loss of $26.2 million, or $0.13 per share, for the fourth quarter of fiscal 2003, compared to a net loss of $40.2 million, or $0.22 per share, for the fourth quarter of fiscal 2002.
Included in the results for the current quarter was a charge of $7.9 million for the planned closure of facilities at Demeter Technologies including $2.7 million in research and development associated with accelerated depreciation due to the reduction in useful life of certain assets.
We expect an additional charge related to the closure of Demeter in the first quarter of fiscal 2004 approximating $7.6 million including $6.2 million associated with the reduction in useful life of certain assets.
Of the total restructuring charge of $15.5 million, approximately $11.1 million is related to non-cash charges.
Demeter's operations are being transferred to the company's facility in Fremont, California acquired in the Genoa acquisition that closed in April 2003.
Research and development expenses for the fourth quarter include the effect of consolidating the operations of Genoa Corporation for one month in the fourth quarter totalling approximately $0.6 million.
The closure of a facility in Hayward, California, announced in the third quarter ended 31st January 2003, was completed during the fourth quarter.
The operations from that facility were consolidated with those at the company's headquarters in Sunnyvale, California.
Including the charge for the cumulative effect of a change in accounting to adopt SFAS 142 totalling $460.6 million, the company recorded a net loss of $619.8 million, or $3.17 per share for the fiscal year ended 30th April 2003, compared with a net loss of $218.7 million, or $1.21 per share for the fiscal year ended 30th April 2002.
Amortisation of acquired developed technology, acquired in-process research and development, amortisation of goodwill and purchased intangibles, other acquisition costs and the cumulative effect of a change in accounting related to the adoption of SFAS 142 are merger-related costs associated with the acquisition of Sensors Unlimited, Demeter Technologies, Medusa Technologies and Shomiti Systems during fiscal 2001, the acquisition of Transwave Fiber and certain assets from AIFOtec during fiscal 2002, the acquisition of certain assets from New Focus during the first quarter ended 31st July 2002, and the acquisition of Genoa Corporation in April 2003.
Effective 1st May 2002, the company discontinued the amortisation of goodwill in accordance with SFAS 142.
Amortisation of goodwill and other intangible assets reclassified to goodwill was $31.9 million and $125.6 million in the prior year fourth quarter and twelve-month period, respectively.
"I think it's important to step back and take a look at what we have accomplished during the past fiscal year", said Jerry Rawls, Finisar's President and CEO.
"In a very difficult economic environment, we just completed a fiscal year which saw revenues increase by 13% to $166 million, the second highest annual revenues in the company's history.
Sales of optical components and subsystems increased by 22% for the year while sales of network test and measurement systems declined 15% in the face of a downturn in IT capital spending.
In terms of new products, we have led the industry to the adoption of XFP 10Gbit/s optical transceivers.
Numerous new system designs are underway incorporating this smaller, cost-effective, power-efficient 10Gbit/s optical transceiver.
In the fourth quarter we also began initial shipments of optical transceivers for metropolitan-area DWDM applications.
We continue to transition a substantial portion of our optical product lines to newer, higher performance, more cost effective designs.
In a similar fashion, our Network Tools group has begun the effort to combine our SAN and LAN testing functions in a single platform with a common user interface.
The first of these products, the 10Gbit/s X-Gig BERT, was introduced during the fourth quarter".
"We made progress at the bottom line, but still have work to do", added Rawls.
"On a non-GAAP basis, our gross margins for the fiscal year improved slightly to 25.5 from 24.6% in the prior year while our operating loss decreased by $8 million or 14% to $51 million in fiscal 2003 from $59 million in fiscal 2002.
If we look at the last two quarters of the fiscal year we can see the initial effects of our restructuring efforts.
Our annualised operating loss was $44 million, an improvement of $15 million or 25% over the prior fiscal year.
We will be faced with the challenge of operating two laser fabrication plants in parallel for a brief period of time during our upcoming first quarter, as we transfer existing device manufacturing from our facility in El Monte, California, to the newly acquired facilities of Genoa located in Fremont, California.
We intend to complete most of this transfer by the end of the first quarter ending 31st July 2003".
"Our cash situation continues to hold up well in the midst of our restructuring efforts", continued Rawls.
"Our cash balances have actually increased by $8 million over the last three quarters".
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