Finisar Corporation Announces Third Quarter Financial ResultsSUNNYVALE, CA -- (Marketwire - March 05, 2009) - Finisar Corporation (NASDAQ: FNSR), a global technology leader for fiber optic subsystems and network test systems, today announced financial results for its third fiscal quarter ended February 1, 2009.
FINISAR FINANCIAL HIGHLIGHTS - THIRD QUARTER ENDED FEBRUARY 1, 2009
GAAP GAAP Non-GAAP (a) Non-GAAP (a)
Feb 1, 2009 Jan 27, 2008 Feb 1, 2009 Jan 27, 2008
----------- ----------- ------------ ------------
(in thousands, except per share data)
Optical products
revenues $ 126,081 $ 102,957 $ 126,081 $ 102,957
Network test
products revenues $ 10,274 $ 9,784 $ 10,274 $ 9,784
Total revenues $ 136,355 $ 112,741 $ 136,355 $ 112,741
Gross margin 30.2 % 33.4 % 31.4% 38.2%
Income (loss) from
operations -
before impairment $ (3,226) $ (8,202) $ 3,076 $ 7,607
Operating margin -
before
impairment (2.4)% (7.3)% 2.3% 6.7%
Goodwill impairment
charge $ 46,534 $ - $ - $ -
Net income (loss) $ (47,357) $ (11,489) $ 2,269 $ 5,819
Net income (loss)
per share - basic $ (0.10) $ (0.04) $ 0.00 $ 0.02
Net income (loss)
per share -
diluted $ (0.10) $ (0.04) $ 0.00 $ 0.02
Shares - basic 474,797 308,663 474,797 308,663
Shares - diluted 474,797 308,663 478,367 312,097
(a) In evaluating the operating performance of Finisar's business,
Finisar management utilizes financial measures that exclude certain
charges and credits required by generally accepted accounting
principles, or GAAP, that are considered by management to be
outside Finisar's core operating results. A reconciliation of
Finisar's non-GAAP financial measures to the most directly
comparable GAAP measures as well as additional related information
can be found under the heading "Finisar Non-GAAP Financial
Measures" below.
Highlights for the quarter included:
- -- Total revenues decreased to $136.4 million, down $23.1 million, or
14.5%, from $159.5 million in the preceding quarter but up $23.6 million,
or 20.9%, from $112.7 million in the third quarter of the prior year due
primarily to the Optium merger completed on August 29, 2008;
- -- Optics revenues decreased to $126.1 million, down $21.6 million, or
14.7% from $147.7 million in the preceding quarter but up $23.1 million, or
22.5%, from $103.0 million in the third quarter of the prior year due
primarily to the Optium merger;
- -- Revenues from the sale of products for 10/40 Gbps applications
decreased to $49.1 million in the third quarter, down $4.9 million, or
9.1%, from $54.0 million in the preceding quarter but increased $20.0
million, or 68.5%, from $29.1 million in the third quarter of the prior
year due primarily to the Optium merger;
- -- Network Test revenues decreased to $10.3 million, down $1.5 million,
or 12.6%, from $11.8 million in the preceding quarter, but increased $0.5
million, or 5.0%, from $9.8 million in the third quarter of the prior year;
- -- Gross margin remained unchanged from the preceding quarter at 30.2%
but decreased from 33.4% in the third quarter of the prior year due
primarily to the Optium merger;
- -- Operating loss before a charge for goodwill impairment was $3.2
million, or (2.4)% of revenue, compared to an operating loss of $10.3
million, or (6.4)% of revenue, in the preceding quarter and an operating
loss of $8.2 million, or (7.3)% of revenue, in the third quarter of the
prior year;
- -- A charge of $46.5 million for the impairment of goodwill was
recognized in conjunction with a continued deterioration in the
macroeconomic environment and a reduction in the Company's fair market
value as of the end of the third quarter. This followed a charge of $178.8
million for the impairment of goodwill in the preceding quarter related
primarily to the addition of $151.0 million in goodwill as a result of the
Optium merger;
- -- A net loss of $47.4 million, or $(0.10) per share, compared to net
loss of $186.8 million, or $(0.44) per share, in the preceding quarter and
a net loss of $11.5 million, or $(0.04) per share, in the third quarter of
the prior year; and
- -- Cash and short-term investments, plus other long-term investments that
can be readily converted into cash, totaled $35.3 million at the end of the
third quarter compared to $51.9 million at the end of the prior quarter.
The decrease primarily reflects a reduction in accounts payable of $23.7
million, or 33%, from the prior quarter and the purchase during the third
quarter of $8.0 million in principal amount of the Company's 2.5%
convertible notes for $3.9 million and the payment of $5.0 million to the
former shareholders of Kailight previously acquired by Optium and triggered
by the merger. The Company continues to maintain a secured credit facility
totaling $45.0 of which $5.0 million was utilized at the end of the
quarter. The Company also has approximately $10.0 million available under
other unsecured lines of credit. Finisar has classified certain of its
investments as long-term based on its intent to hold these securities until
maturity, although they can be readily sold if required.
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Finisar provides supplemental information regarding its operating performance on a non-GAAP basis. Finisar believes this additional information provides investors and management with additional insight into its underlying core operating performance by excluding a number of non-cash and cash charges as well as gains or losses principally related to acquisitions, the sale of minority investments, restructuring or other transition activities, impairments and financing transactions. For the third quarter of fiscal 2009, these excluded items included, among other items described in Finisar Non-GAAP Financial Measures below, a non-cash charge of $46.5 million for the impairment of goodwill; $4.1 million in non-cash stock compensation expense; $2.5 million in amortization charges related to acquired developed technology and purchased intangibles arising from previous acquisitions; a $4.1 million gain related to the repurchase of the Company's outstanding convertible notes; and a $1.0 million non-cash credit for slow moving and obsolete inventory.
Excluding these items:
- -- Non-GAAP gross margins decreased sequentially to 31.4%, compared to
35.6% in the preceding quarter and 38.2% in the third quarter of the prior
year. The sequential decrease in non-GAAP gross margin reflects a full
quarter impact of the Optium merger and increased manufacturing costs on a
per unit basis resulting from lower shipment volumes; and
- -- Non-GAAP operating income of $3.1 million, or 2.3% of revenues, was
down from $12.8 million, or 8.0% of revenues, in the preceding quarter, and
from $7.6 million, or 6.7% of revenues, in the third quarter of the prior
year. The decrease in operating margin from the previous quarter reflects
the impact of lower shipment levels partially offset by a reduction of
$4.1 million in operating expenses; and
- -- Non-GAAP net income decreased to $2.3 million, or $0.00 per diluted
share, compared to $10.3 million, or $0.02 per diluted share, in the
preceding quarter and $5.8 million, or $0.02 per diluted share, in the
third quarter of the prior year.
In its earlier announcement regarding revenues for the third quarter, the Company noted that it continued to make progress with respect to additional new product customer qualifications, but also noted that a continuing softness in orders would mostly likely result in a further decrease in revenues for its upcoming fourth quarter ending April 30, 2009. Among the products recently qualified were the following:
- -- 40Gbps line-side transponder with three customers;
- -- 40Gbps client-side transponders with four customers;
- -- XPAK-SR, X2-LRM and Xenpak-SR transceivers for short distance 10Gbps
Ethernet applications with two customers;
- -- X2-LR and Xenpak-LR transceivers for longer distance 10Gbps Ethernet
applications with one major customer;
- -- 50GHz 88 channel WSS ROADM linecard with one customer;
- -- WSS 50GHz and 100GHz products with four customers;
- -- Pluggable tunable 10Gbps transponder with two customers; and
- -- CATV low-cost 1310nm transmission product with one customer.
"Despite the difficult economic environment, we have made significant progress in qualifying new products at a number of customers," said Jerry Rawls, Finisar's executive Chairman of the Board. "Nevertheless, we believe revenue for the upcoming fourth quarter will be sequentially lower, although the weakness appears to be concentrated at a small number of customers."
"We continue to make progress in terms of reducing costs," said Eitan Gertel, Finisar's Chief Executive Officer. "With the reductions we have already realized, our non-GAAP EBITDA exceeded $11 million in the most recent quarter. Combined with the additional cost reductions that we have put in place for the fourth quarter, we should be in a good position to weather any near term weakness in our top line."
Cost Reduction Actions
As noted in its announcement regarding third quarter revenues, the Company has undertaken a number of cost reduction actions which are expected to result in total annual savings of approximately $44 million as compared to the cost structure of the combined company for the full second fiscal quarter ended Nov. 2, 2008. Approximately $24 million of these annual cost savings have been realized as of the third quarter ended February 1, 2009. An additional $8 million in annual cost savings are expected to be realized in the upcoming fourth quarter ending April 30, 2009, and the remaining $12 million in annual cost savings are expected to benefit the Company by the second quarter ending November 1, 2009. The actions undertaken to date include:
- -- Personnel reductions of approximately 200 people, or 17% of the
Company's total workforce, excluding operations in Malaysia and Shanghai;
- -- Reduction in salaries totaling 10% for officers, directors and most
employees starting in February 2009; and
- -- Suspension of 401(k) matching Company contributions.
Other cost reduction actions that are expected to benefit the Company beginning in the first quarter ending August 2, 2009 include: (1) the transfer of certain product manufacturing to the Company's lower cost off-shore locations, and (2) cost savings from engineering changes to enable the broader use of internally manufactured components.
CONFERENCE CALL
Finisar will discuss these financial statements and its current business outlook during its regular quarterly conference call scheduled for today, March 5, 2009, at 2:00 p.m. Pacific Time. To listen to the call you may connect to the investor page of Finisar at www.finisar.com or dial 866-393-6455 (domestic) or 706-634-9717 (international) and enter passcode 84169293.
A replay of the webcast will be available shortly after the conclusion of the call on the Company's website until the next conference call to be held approximately 90 days from today. An audio replay of the call will be accessible to the public by calling (800) 642-1687 (domestic) or (706) 645-9291 (international) and then, following the prompts, enter conference ID 84169293 and record your name, affiliation, and contact number. The audio replay will be available for two weeks following the call.
SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements included in this press release are based upon information available to Finisar as of the date hereof, and Finisar assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from those projected. Examples of such risks include those associated with: the uncertainty of customer demand for Finisar's products, the integration of the operations of Optium and the realization of synergies expected to result from Finisar's combination with Optium; the rapidly evolving markets for Finisar's products and uncertainty regarding the development of these markets; Finisar's historical dependence on sales to a limited number of customers and fluctuations in the mix of products and customers in any period; ongoing new product development and introduction of new and enhanced products; the challenges of rapid growth followed by periods of contraction; and intensive competition. Additional risks include the potential impact of pending civil litigation arising from the investigation of Finisar's historical option granting practices. Further information regarding these and other risks relating to Finisar's business, including the recently acquired operations of Optium, is set forth in Finisar's quarterly report on Form 10-Q (filed December 17, 2008).
ABOUT FINISAR
Finisar Corporation (NASDAQ: FNSR) is a global technology leader for fiber optic subsystems and network test systems that enable high-speed voice, video and data communications for networking, storage, wireless, and cable TV applications. For more than 20 years, Finisar has provided critical optics technologies to system manufacturers to meet the increasing demands for network bandwidth and storage. Finisar is headquartered in Sunnyvale, California, USA with R&D, manufacturing sites, and sales offices worldwide. For additional information, visit www.finisar.com.
FINISAR FINANCIAL STATEMENTS
The following financial tables are presented in accordance with GAAP.
Finisar Corporation
Consolidated Statements of Operations
Three Months
Three Months Ended Nine Months Ended* Ended
February 1, January 27, February 1, January 27, November 2,
2009 2008* 2009 2008* 2008
----------- ----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited)
(in thousands, except share (in thousands, except share
and per share data) and per share data)
Revenues
Optical
subsys-
tems and
compo-
nents $ 126,081 $ 102,957 $ 389,601 $ 290,247 $ 147,746
Network
perfor-
mance
test
systems 10,274 9,784 34,972 28,928 11,760
----------- ----------- ----------- ----------- -----------
Total
revenues 136,355 112,741 424,573 319,175 159,506
Cost of
revenues 93,491 73,396 281,394 212,279 109,859
Amortization
of acquired
developed
technology 1,705 1,729 4,454 5,187 1,503
----------- ----------- ----------- ----------- -----------
Gross profit 41,159 37,616 138,725 101,709 48,144
Gross margin 30.2% 33.4% 32.7% 31.9% 30.2%
Operating
expenses:
Research and
development 24,098 21,218 69,739 56,350 24,868
Sales and
marketing 9,396 10,492 30,097 29,726 10,552
General and
admini-
istrative 10,050 13,620 32,275 34,352 11,728
Acquired in-
process
research
and
development - - 10,500 - 10,500
Amortization of
purchased
intangibles 841 488 1,862 1,468 753
Impairment
of good-
will and
intangible
assets 46,534 - 225,302 - 178,768
----------- ----------- ----------- ----------- -----------
Total
operating
expenses 90,919 45,818 369,775 121,896 237,169
----------- ----------- ----------- ----------- -----------
Loss from
operations (49,760) (8,202) (231,050) (20,187) (189,025)
Interest
income 119 1,501 1,744 4,453 657
Interest
expense (1,469) (4,291) (8,355) (12,895) (2,878)
Gain on
debt extin-
guishment 4,070 - 4,070 - -
Other
income
(expense),
net (749) 310 (4,020) 262 (3,328)
----------- ----------- ----------- ----------- -----------
Loss before
income
taxes (47,789) (10,682) (237,611) (28,367) (194,574)
Provision
for income
taxes (432) 807 (7,429) 2,083 (7,743)
----------- ----------- ----------- ----------- -----------
Net loss $ (47,357) $ (11,489) $ (230,182) $ (30,450) $ (186,831)
=========== =========== =========== =========== ===========
Net income
(loss) per
share - basic
and
diluted $ (0.10) $ (0.04) $ (0.51) $ (0.10) $ (0.44)
Shares used in
computing
net loss
per share
- basic
and diluted 474,797 308,663 448,310 308,645 426,601
*Adjusted to reflect adoption of new accounting principle.
Finisar Corporation
Consolidated Balance Sheets
(In thousands)
Memo Optium
balance sheet
upon merger
February 1, November 2, August 3, April 30, (August 29,
2009 2008 2008 2008 2008)
----------- ----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Current
assets:
Cash and
cash
equiv-
alents $ 34,645 $ 44,192 $ 96,499 $ 79,442 $ 31,825
Short-
term
available
for-sale
invest-
ments 301 7,382 20,636 27,776 -
Short-
term
available-
for-sale
invest-
ments -
equity - 1,287 2,801 -
Accounts
receivable,
net 84,570 94,737 57,186 48,005 29,094
Accounts
receivable,
other 8,554 10,237 10,936 12,408 -
Invent-
ories 116,057 120,873 88,823 82,554 34,283
Prepaid
expenses 8,191 9,054 8,291 7,652 856
----------- ----------- ----------- ----------- -----------
Total
current
assets 252,318 286,475 283,658 260,638 96,058
Long-term
available
-for-sale
investments
- debt 313 326 7,452 9,236 -
Property,
plant and
improve-
ments, net 88,543 92,136 75,624 89,847 19,129
Purchased
technology,
net 19,495 21,200 10,604 11,850 12,192
Other
intangible
assets, net 15,141 15,982 3,632 3,899 13,000
Goodwill 13,892 59,589 88,242 88,242 150,115
Minority
investments 14,289 14,289 14,289 13,250 -
Other
assets 3,204 3,552 4,955 3,241 796
----------- ----------- ----------- ----------- -----------
Total
assets $ 407,195 $ 493,549 $ 488,456 $ 480,203 $ 291,290
=========== =========== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
liabilities:
Accounts
paya-
ble $ 49,786 $ 72,599 $ 49,342 $ 43,040 $ 29,663
Accrued
compen-
sation 12,774 17,621 13,521 14,397 1,483
Other
accrued
liabilities 28,070 36,413 22,460 23,397 15,859
Deferred
revenue 4,977 4,922 5,692 5,312 -
Current
portion
of other
long-term
liabilities 6,060 6,085 5,286 2,436 -
Conver-
tible
notes - - 91,146 101,918 -
Non-can-
celable
purchase
obli-
gations 3,420 5,326 1,995 3,206 -
----------- ----------- ----------- ----------- -----------
Total
current
liabil-
ities 105,087 142,966 189,442 193,706 47,005
Long-term
liabilities:
Conver-
tible
notes 142,000 150,000 150,000 150,000 -
Other
long-term
liabilities 25,304 22,217 23,569 18,911 973
Deferred
income
taxes 1,190 1,190 9,454 8,903 -
----------- ----------- ----------- ----------- -----------
Total
long-term
liabil-
ities 168,494 173,407 183,023 177,814 973
Stockholders'
equity:
Common
stock 477 473 311 309 161
Additional
paid-in
capital 1,806,732 1,801,642 1,546,344 1,540,241 253,651
Accumu-
lated
other
compre-
hensive
income 1,427 2,726 10,170 12,973 -
Accumu-
lated
deficit (1,675,022) (1,627,665) (1,440,834) (1,444,840) (10,500)
----------- ----------- ----------- ----------- -----------
Total
stock-
holders'
equity 133,614 177,176 115,991 108,683 243,312
----------- ----------- ----------- ----------- -----------
Total
liabilities
and
stockholders'
equity $ 407,195 $ 493,549 $ 488,456 $ 480,203 $ 291,290
=========== =========== =========== =========== ===========
FINISAR NON-GAAP FINANCIAL MEASURES
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Finisar provides supplemental information regarding the Company's operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or which occur relatively infrequently and which management considers to be outside our core operating results. Some of these non-GAAP measures also exclude the ongoing impact of historical business decisions made in different business and economic environments. Management believes that tracking non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share provides management and the investment community with valuable insight into our current operations, our ability to generate cash and the underlying business trends which are affecting our performance. These non-GAAP measures are used by both management and our Board of Directors, along with the comparable GAAP information, in evaluating our current performance and planning our future business activities. In particular, management finds it useful to exclude non-cash charges in order to better correlate our operating activities with our ability to generate cash from operations and to exclude non-recurring and infrequently incurred cash charges as a means of more accurately predicting our liquidity requirements. We believe that these non-GAAP measures, when used in conjunction with our GAAP financial information, also allow investors to better evaluate our financial performance in comparison to other periods and to other companies in our industry.
In calculating non-GAAP gross profit, we have excluded the following items from cost of revenues in applicable periods:
- -- Changes in excess and obsolete inventory reserve (predominantly non-
cash charges or non-cash benefits);
- -- Amortization of acquired technology (non-cash charges related to
technology obtained in acquisitions);
- -- Duplicate facility costs during facility move (non-recurring charges);
- -- Stock-based compensation expense (non-cash charges);
- -- Purchase accounting adjustment for sale of acquired inventory (non-
cash and non-recurring charges); and
- -- Reduction in force costs (non-recurring charges).
In calculating non-GAAP operating income, we have excluded the same items to the extent they are classified as operating expenses, and have also excluded the following items in applicable periods:
- -- Options investigation costs included in general and administrative
expense (non-recurring cash charges related to the special investigation
into our historical stock option granting practices) and the cost of
covering employee and employer tax liabilities (non-recurring cash charges)
arising from that investigation recorded in each line of the income
statement;
- -- Disposal of a product line (non-recurring charges);
- -- Acquired in-process research and development expense (non-recurring
and non-cash charges);
- -- Amortization of purchased intangibles (non-cash charges related to
prior acquisitions); and
- -- Impairment charges associated with intangible assets (non-cash and non-
recurring).
In calculating non-GAAP net income and non-GAAP net income per share, we have also excluded the following items in applicable periods:
- -- Amortization of discount on convertible debt (non-cash charges);
- -- Gains and losses on debt extinguishment (non-recurring and non-cash
charges or income);
- -- Gains and losses on sales of assets (non-recurring or non-cash losses
and cash gains related to the periodic disposal of assets no longer
required for current activities);
- -- Gains and losses on minority investments (infrequently occurring and
principally non-cash gains and losses related to the disposal of
investments in other companies and non-cash income or loss from these
investments accounted for under the equity method);
- -- Foreign exchange transaction loss (non-recurring and non-cash
charges);
- -- Tax charges arising from timing difference related to asset purchases
(non-cash provision); and
- -- Cumulative effect of change in accounting principle (non-recurring and
non-cash charges or income).
A reconciliation of this non-GAAP financial information to the corresponding GAAP information is set forth below:
Finisar Corporation
Reconciliation of Results of Operations under GAAP and non-GAAP
Three
Three Months Ended Nine Months Ended* Months Ended
February 1, January 27, February 1, January 27, November 2,
2009 2008* 2009 2008* 2008
----------- ----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited)
(in thousands, except (in thousands, except
per share data) per share data)
Reconciliation of
GAAP Gross
Profit to
non-GAAP
Gross
Profit:
Gross profit
per GAAP 41,159 37,616 138,725 101,709 48,144
Gross margin,
GAAP 30.2% 33.4% 32.7% 31.9% 30.2%
Adjustments:
Cost of
revenues
Change in
excess
and
obsolete
inventory
reserve (957) 1,587 3,543 6,354 4,785
Amortization
of acquired
technology 1,705 1,729 4,454 5,187 1,503
Duplicate
facility
costs
during
facility
move - - 287 - 117
Stock
compen-
sation 797 895 2,517 2,320 864
Acquisition
related
compen-
sation - 40 - 40 -
Costs
related
to options
investi-
gation - 1,084 - 1,084 -
Purchase
accounting
adjustment
for sale of
acquired
inventory - - 1,402 1,306 1,402
Reduction
in force
costs 128 145 183 337 19
----------- ----------- ----------- ----------- -----------
Total
cost of
revenue
adjust-
ments 1,673 5,480 12,386 16,628 8,690
Gross profit,
non-GAAP 42,832 43,096 151,111 118,337 56,834
Gross margin,
non-GAAP 31.4% 38.2% 35.6% 37.1% 35.6%
Reconciliation of
GAAP operating
income (loss)
to non-GAAP
operating
income (loss):
Operating income
(loss) per
GAAP (49,760) (8,202) (231,050) (20,187) (189,025)
Operating
margin, GAAP -36.5% -7.3% -54.4% -6.3% -118.5%
Adjustments:
Total cost of
revenue
adjustments 1,673 5,480 12,386 16,628 8,690
Research and
development
Reduction
in force
costs 111 - 187 28 76
Stock comp-
ensation 1,816 1,247 4,595 3,238 1,671
Acquisition
related comp-
ensation - 748 - 748 -
Costs related
to options
investi-
gation - 1,648 - 1,648 -
Sales and
marketing
Reduction
in force
costs 125 49 225 83 -
Stock comp-
ensation 561 673 1,594 1,566 516
Acquisition
related
compensation - 128 - 128 -
Costs related
to options
investigation - 742 - 742 -
General and
administrative
Reduction in
force costs 217 - 217 6 -
Stock comp-
ensation 958 481 2,254 1,462 720
Acquistion
related comp-
ensation - 164 - 164 -
Costs related
to options
investigation - 3,961 276 8,262 130
Disposal of
a product
line - - 919 - -
Amortization of
purchased
intangibles 841 488 1,862 1,468 753
Acquired in-
process R&D - - 10,500 - 10,500
Impairment of
intangible
assets 46,534 - 225,302 - 178,768
----------- ----------- ----------- ----------- -----------
Total
cost of
revenue
and
operating
expense
adjust-
ments 52,836 15,809 260,317 36,171 201,824
Operating
income,
non-GAAP 3,076 7,607 29,267 15,984 12,799
Operating
margin,
non-GAAP 2.3% 6.7% 6.9% 5.0% 8.0%
Reconciliation of
GAAP net income
(loss) to
non-GAAP
net income
(loss):
Net income
(loss) per
GAAP (47,357) (11,489) (230,182) (30,450) (186,831)
Total cost
of revenue
and
operating
expense
adjustments 52,836 15,809 260,317 36,171 201,824
Amortization of
discount
on convertible
debt - 1,253 1,817 3,706 671
Loss on debt
extingui-
shment (4,070) - (3,839) - 231
Other expense,
net
Loss (gain)
on sale of
assets 104 (99) 497 (458) (20)
Loss (gain)
on minority
investments - (22) 797 (206) 1,197
Other misc
income - (327) (558) (327) (58)
Foreign
exchange
trans-
action loss 756 - 2,485 - 1,729
Provision for
income tax
Timing
difference
related
to asset
purchases - 694 (7,847) 1,782 (8,398)
----------- ----------- ----------- ----------- -----------
Total
adjustments 49,626 17,308 253,669 40,668 197,176
----------- ----------- ----------- ----------- -----------
Net income,
non-GAAP $ 2,269 $ 5,819 $ 23,487 $ 10,218 $ 10,345
=========== =========== =========== =========== ===========
Net income,
non-GAAP
per share
- basic $ 0.00 $ 0.02 $ 0.05 $ 0.03 $ 0.02
Net income,
non-GAAP
per share
- diluted $ 0.00 $ 0.02 $ 0.05 $ 0.03 $ 0.02
Shares used
in computing
non-GAAP
net income
per share
- basic 474,797 308,663 448,310 308,645 426,601
Shares used
in computing
non-GAAP
net income
per share
- diluted 478,367 312,097 452,208 321,595 429,946
Non-GAAP EBITDA
Net income,
non-GAAP $ 2,269 $ 5,819 $ 23,487 $ 10,218 $ 10,345
Depreciation
expense 7,904 6,180 21,740 17,864 7,445
Interest
expense 1,350 1,537 4,794 4,736 1,550
Income tax
expense (432) 113 418 301 655
----------- ----------- ----------- ----------- -----------
Non-GAAP
EBITDA $ 11,091 $ 13,649 $ 50,439 $ 33,119 $ 19,995
=========== =========== =========== =========== ===========
*Adjusted to reflect adoption of new accounting principle.
Contact:
Steve Workman
Chief Financial Officer
408-548-1000
Victoria McDonald
Senior Manager, Corporate Communications
408-542-4261
investor.relations@Finisar.com
