Finisar Corporation Announces Record Revenues and ProfitabilityRecord Quarterly Revenues of $240.9 Million
Net Income from Continuing Operations Sets a New Record
Non-GAAP Operating Margin Reaches 17.0%
Non-GAAP Diluted Earnings per Share of $0.44, Up 42% Quarter-Over-Quarter
SUNNYVALE, CA -- (Marketwire - December 01, 2010) - Finisar Corporation (NASDAQ: FNSR), a global technology leader for subsystems and components for fiber optics communications, today announced financial results for its second quarter ended October 31, 2010.
COMMENTARY
"In our just completed second quarter, we reached our previously announced target for non-GAAP operating margin of 17.0%, upwardly revised just last quarter, substantially earlier than we had predicted. Achieving this level of operating margin was driven by our strong revenue growth combined with minimal increases in operating expenses," said Jerry Rawls, Finisar's executive Chairman of the Board. "We achieved new company records for quarterly revenues, operating income and net income."
"Furthermore, the market environment continued to be very strong for Finisar, driven by increased demand for a broad range of LAN/SAN and metro/telecom products," said Eitan Gertel, Finisar's Chief Executive Officer. "The company continued to gain market share, including in the WSS/ROADM line card segment where revenues grew 27.3% over the previous quarter. We expect revenues for WSS/ROADM line cards to grow another 20% to 30% sequentially in our fiscal third quarter."
FINANCIAL HIGHLIGHTS - SECOND QUARTER ENDED October 31, 2010
Second Second First
Quarter Quarter Quarter
Summary Results per GAAP Ended Ended Ended
October 31, November 1, August 1,
2010 2009 2010
---------- --------- ----------
(in thousands, except per share
amounts)
Continuing operations
Revenues $ 240,943 $ 145,730 $ 207,882
Gross margin 34.2% 27.3% 34.1%
Operating expenses $ 46,295 $ 41,756 $ 47,151
Operating income (loss) $ 36,105 $ (1,963) $ 23,747
Operating margin (deficit) 15.0% (1.3)% 11.4%
Income (loss) $ 33,796 $ (31,417) $ 19,410
Income (loss) per share-basic $ 0.44 $ (0.49) $ 0.26
Income (loss) per share-diluted $ 0.39 $ (0.49) $ 0.24
Basic shares 76,766 64,198 76,111
Diluted shares 89,521 64,198 88,215
Second Second First
Quarter Quarter Quarter
Non-GAAP Results (a) Ended Ended Ended
October 31, November 1, August 1,
2010 2009 2010
---------- --------- ----------
(in thousands, except per share
amounts)
Continuing operations
Revenues $ 240,943 $ 145,730 $ 207,882
Gross margin 35.5% 29.6% 35.2%
Operating expenses $ 44,594 $ 34,201 $ 44,234
Operating income $ 40,897 $ 8,912 $ 29,043
Operating margin 17.0% 6.1% 14.0%
Income $ 38,302 $ 7,544 $ 25,812
Income per share-basic $ 0.50 $ 0.12 $ 0.34
Income per share-diluted $ 0.44 $ 0.11 $ 0.31
Basic shares 76,766 64,198 76,111
Diluted shares 89,521 65,655 88,215
(a) In evaluating the operating performance of Finisar's business,
Finisar management utilizes financial measures that exclude certain
charges and credits required by U.S. 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 second quarter of fiscal 2011 under GAAP:
- -- Revenues increased to $240.9 million, up $33.1 million, or 15.9%, from
$207.9 million in the preceding quarter and up $95.2 million, or 65.3%,
from $145.7 million in the second quarter of the prior year.
- -- Compared to the preceding quarter, the sale of 10 Gbps or faster
products increased $13.3 million, or 14.1%, the sale of less than
10 Gbps products increased $12.1 million, or 15.4%, the sale of ROADM
related products, including wavelength selective switches (WSS)
increased $8.3 million, or 27.3%, and the sale of products for analog
and cable television (CATV) applications decreased $0.7 million, or
(15.6)%.
- -- Compared to the second quarter of the prior year, the sale of 10 Gbps
or faster products increased $52.0 million, or 94.0%, the sale of less
than 10 Gbps products increased $21.3 million, or 30.5%, the sale of
ROADM related products increased $23.3 million, or 151.0%, and the sale
of products for CATV applications decreased $1.4 million, or (28.6)%.
- -- Gross margin increased to 34.2% from 34.1% in the preceding quarter
and 27.3% in the second quarter of the prior year.
- -- Operating income increased to $36.1 million, or 15.0% of revenues,
compared to $23.7 million, or 11.4% of revenues, in the preceding
quarter and an operating loss of $(2.0) million, or (1.3)% of revenues,
in the second quarter of the prior year.
- -- Net income from continuing operations was $33.8 million, or $0.39 per
diluted share, compared to $19.4 million, or $0.24 per diluted share,
in the preceding quarter and a loss of $(31.4) million, or $(0.49) per
share, in the second quarter of the prior year.
- -- Cash generated during the second quarter, after working capital
adjustments and capital expenditures, excluding the items described in
the next paragraph, totaled $18.0 million. Accounts receivable and
inventory increased $20.8 million and $12.4 million, respectively. The
increase in accounts receivable was driven by increased revenue levels
as days sales outstanding, or DSOs, were 66 days compared to 67 days in
the prior quarter. The increase in inventory was due in part to planned
inventory build-up in anticipation of further revenue growth in the
third quarter. Capital expenditures were $13.4 million compared to
$12.1 million in the preceding quarter and $7.6 million in the second
quarter of the prior year.
- -- In addition during the quarter, the Company received $11.3 million in
cash, net of related legal fees, under a settlement and cross license
agreement with Source Photonics, Inc. This settlement resolved a
lawsuit brought by Finisar claiming infringement of Finisar patents.
Finisar also paid $29.6 million in cash to retire convertible
subordinated notes which matured on October 15, 2010 and made scheduled
principal payments of an additional $1.0 million on its Malaysian debt.
Finally, the Company used $5.9 million in cash to make a strategic
minority investment in a small opto-electronics company.
- -- Cash and cash equivalents totaled $184.9 million at the end of the
second quarter compared to $192.2 million at the end of the preceding
quarter.
- -- Under Finisar's $70.0 million secured credit facility with Wells Fargo
Foothill, LLC, no borrowings were outstanding and $66.6 million was
available to borrow at the end of the second quarter.
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Finisar provides supplemental information regarding its operating performance on a non-GAAP basis. Finisar believes this supplemental 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 infrequently occurring gains or losses principally related to acquisitions, the sale of minority investments, restructuring or other transition activities, legal settlements, impairments and financing transactions. For the second quarter of fiscal 2011, these excluded items related to continuing operations represented a net benefit of $4.5 million. Excluded benefits and charges included a benefit of $2.5 million representing the portion of the cash received under the settlement and cross license agreement with Source Photonics that was attributable to past damages, net of related legal fees; $5.0 million in non-cash stock-based compensation expenses; $1.6 million in non-cash amortization charges related to acquired developed technology and purchased intangibles arising from previous acquisitions; a $115,000 representing the difference between cash payments for income taxes and the related GAAP tax provision, less non-recurring items; $575,000 in non-cash charges related to slow-moving and excess inventory; and $367,000 in non-cash charges for imputed interest expense on the Company's debt obligations. Other excluded items are described in Finisar Non-GAAP Financial Measures below.
Highlights for the second quarter of fiscal 2011 on a non-GAAP basis:
- -- Non-GAAP gross margin was 35.5% compared to 35.2% in the preceding
quarter and 29.6% in the second quarter of the prior year. The
improvement in gross margin compared to the preceding quarter was due
primarily to a favorable shift in product mix. The improvement compared
to the prior year reflects both a favorable shift in product mix and a
reduction in manufacturing unit costs due to higher shipment volumes.
- -- Non-GAAP operating expenses were $44.6 million, substantially unchanged
from $44.2 million in the preceding quarter and an increase of
$10.4 million from $34.2 million in the second quarter of the prior
year. Operating expenses as a percent of revenues declined to 18.5% of
revenue in the second quarter compared to 21.3% in the preceding
quarter and 23.5% in the prior year due primarily to revenues growing
faster than expenses.
- -- Non-GAAP operating income was $40.9 million, or 17.0% of revenues, up
$11.9 million from $29.0 million, or 14.0% of revenues, in the
preceding quarter, and up $32.0 million from $8.9 million, or 6.1% of
revenues, in the second quarter of the prior year.
- -- Non-GAAP net income from continuing operations was $38.3 million, or
$0.44 per diluted share, compared to net income of $ 25.8 million, or
$0.31 per diluted share, in the preceding quarter and $7.5 million, or
$0.11 per diluted share, in the second quarter of the prior year.
- -- Non-GAAP EBITDA rose to $49.5 million compared to $37.3 million in the
preceding quarter and $16.0 million in the second quarter of the prior
year.
OUTLOOK
The Company indicated that it currently expects revenues for its third fiscal quarter ending January 30, 2011 to be in the range of $247 to $262 million. On a GAAP basis, operating margin is expected to be greater than or equal to 14.0%. Additional non-cash and infrequently occurring charges and benefits excluded in calculating non-GAAP operating income are expected to total a net charge of approximately $7 to $8 million. As a result, on a non-GAAP basis, operating margin is expected to be greater than or equal to 17.0%. Non-GAAP earnings per diluted share is expected to be in the range of $0.45 to $0.47.
CONFERENCE CALL
Finisar will discuss its financial results for the second quarter and current business outlook during its regular quarterly conference call scheduled for Wednesday, December 1, 2010, at 2:00pm PST (5:00pm EST). To listen to the call you may connect through the Finisar investor relations page at http://investor.finisar.com/ or dial 1-888-211-7360 (domestic) or (913) 981-5554 (international) and enter conference ID 9676444.
An audio replay will be available for two weeks following the call by dialing 1-888-203-1112 (domestic) or (719) 457-0820 and then following the prompts: enter conference ID 9676444 and provide your name, affiliation, and contact number. A replay of the webcast will be available shortly after the conclusion of the call on the Company's website until the next regularly scheduled earnings conference 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 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. Further information regarding these and other risks relating to Finisar's business is set forth in Finisar's annual report on Form 10-K (filed July 1, 2010) and quarterly SEC filings.
ABOUT FINISAR
Finisar Corporation (NASDAQ: FNSR) is a global technology leader for fiber optic subsystems and components that enable high-speed voice, video and data communications for telecommunications, 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 Six Months Ended Ended
------------------- ------------------ --------
October November October November August
31, 2010 1, 2009 31, 2010 1, 2009 1, 2010
-------- --------- -------- -------- --------
(Unaudited)
(in thousands, except per share data)
Revenues $240,943 $ 145,730 $448,825 $274,455 $207,882
Cost of revenues 157,343 104,745 293,135 202,875 135,792
Amortization of
acquired developed
technology 1,200 1,192 2,392 2,385 1,192
-------- --------- -------- -------- --------
Gross profit 82,400 39,793 153,298 69,195 70,898
Gross margin 34.2% 27.3% 34.2% 25.2% 34.1%
Operating expenses:
Research and
development 28,148 21,575 54,765 42,622 26,617
Sales and marketing 9,247 7,313 18,322 14,132 9,075
General and
administrative 8,517 8,177 19,593 17,798 11,076
Amortization of
purchased intangibles 383 518 766 1,219 383
Restructuring costs - 4,173 - 4,173 -
-------- --------- -------- -------- --------
Total operating
expenses 46,295 41,756 93,446 79,944 47,151
-------- --------- -------- -------- --------
Income (loss) from
operations 36,105 (1,963) 59,852 (10,749) 23,747
Interest income 143 9 235 19 92
Interest expense (2,077) (2,167) (4,232) (4,601) (2,155)
Gain (loss) on
repayment/purchase of
convertible notes - (25,067) - (25,067) -
Other income (expense),
net 192 (2,191) - (1,938) (192)
-------- --------- -------- -------- --------
Income (loss) from
continuing operations
before income taxes 34,363 (31,379) 55,855 (42,336) 21,492
Provision for (benefit
from) income taxes 567 38 2,649 197 2,082
-------- --------- -------- -------- --------
Income (loss) from
continuing operations 33,796 (31,417) 53,206 (42,533) 19,410
Income (loss) from
discontinued
operations, net of
taxes - (67) (284) 37,012 (284)
-------- --------- -------- -------- --------
Net income (loss) $ 33,796 $ (31,484) $ 52,922 $ (5,521) $ 19,126
======== ========= ======== ======== ========
Income (loss) per share
from continuing
operations - basic $ 0.44 $ (0.49) $ 0.70 $ (0.68) $ 0.26
Income (loss) per share
from continuing
operations - diluted $ 0.39 $ (0.49) $ 0.63 $ (0.68) $ 0.24
Income (loss) per share
from discontinued
operations - basic $ - $ (0.00) $ (0.00) $ 0.60 $ (0.00)
Income (loss) per share
from discontinued
operations - diluted $ - $ (0.00) $ (0.00) $ 0.60 $ (0.00)
Shares used in computing
net loss per share from
continuing operations -
basic 76,766 64,198 76,433 62,157 76,111
Shares used in computing
net loss per share from
continuing operations -
diluted 89,521 64,198 89,013 62,157 88,215
Shares used in computing
net income (loss) per
share from discontinued
operations - basic 76,766 64,198 76,433 62,157 76,111
Shares used in computing
net income (loss) per
share from discontinued
operations - diluted 89,521 64,198 89,013 62,157 88,215
Finisar Corporation
Consolidated Balance Sheets
(In thousands)
October 31, August 1, April 30,
2010 2010 2010
----------- ----------- -----------
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 184,928 $ 192,152 $ 207,024
Accounts receivable, net 173,243 152,477 127,617
Accounts receivable, other 11,826 9,885 12,855
Inventories 167,021 154,586 139,525
Deferred tax assets 1,559 852 2,238
Prepaid expenses 9,571 7,306 6,956
----------- ----------- -----------
Total current assets 548,148 517,258 496,215
Property, equipment and
improvements, net 100,960 93,386 89,214
Purchased technology, net 9,576 10,497 11,689
Other intangible assets, net 10,910 11,312 11,713
Minority investments 18,169 12,289 12,289
Other assets 4,995 5,131 5,610
----------- ----------- -----------
Total assets $ 692,758 $ 649,873 $ 626,730
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 86,598 $ 79,121 $ 76,838
Accrued compensation 21,861 14,479 18,289
Other accrued liabilities 19,426 19,450 21,076
Deferred revenue 8,475 6,290 6,571
Current portion of convertible notes - 29,214 28,839
Current portion of long-term debt 4,000 4,000 4,000
Non-cancelable purchase
obligations 1,313 756 722
----------- ----------- -----------
Total current liabilities 141,673 153,310 156,335
Long-term liabilities:
Convertible notes, net of
current portion 100,000 100,000 100,000
Long-term debt, net of current
portion 13,250 14,250 15,250
Other non-current liabilities 12,762 6,102 6,260
Deferred tax liabilities 328 255 239
----------- ----------- -----------
Total liabilities 268,013 273,917 278,084
Stockholders' equity:
Common stock 77 76 76
Additional paid-in capital 2,048,708 2,038,636 2,030,373
Accumulated other comprehensive
income 20,632 15,712 15,791
Accumulated deficit (1,644,672) (1,678,468) (1,697,594)
----------- ----------- -----------
Total stockholders' equity 424,745 375,956 348,646
----------- ----------- -----------
Total liabilities and stockholders'
equity $ 692,758 $ 649,873 $ 626,730
=========== =========== ===========
FINISAR NON-GAAP FINANCIAL MEASURES
In addition to reporting financial results in accordance with U.S. 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 in this release, 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);
- -- Stock-based compensation expense (non-cash charges); and
- -- Reduction in force costs (non-recurring charges).
In calculating non-GAAP operating income in this release, 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:
- -- The cost of covering employee and employer tax liabilities
(non-recurring cash charges) arising from the special investigation
into our historical stock option granting practices; and
- -- Gain or loss on settlement of lawsuits (non-recurring charges).
In calculating non-GAAP income from continuing operations and non-GAAP income from continuing operations per share in this release, we have also excluded the following items in applicable periods:
- -- Amortization of discount on convertible debt and imputed interest
expense (non-cash charges);
- -- Losses on repayment/purchase of convertible notes (non-recurring and
non-cash charges);
- -- 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);
- -- Other miscellaneous income;
- -- Foreign exchange transaction losses (gains) (non-recurring and
non-cash charges); and
- -- Differences between cash payable for tax and GAAP provision, less
non-recurring items.
In calculating non-GAAP income (loss) from discontinued operations and non-GAAP income (loss) from discontinued operations per share in this release, we have also excluded gains on disposal of a product line and disposal of discontinued operations.
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
Months
Three Months Ended Six Months Ended Ended
------------------ ------------------ --------
October November October November August
31, 2010 1, 2009 31, 2010 1, 2009 1, 2010
-------- -------- -------- -------- --------
(Unaudited)
(in thousands, except per share data)
Reconciliation of GAAP
income (loss) to
non-GAAP income (loss)
from continuing
operations
Reconciliation of GAAP
Gross Profit to non-GAAP
Gross Profit:
Gross profit per GAAP $ 82,400 $ 39,793 $153,298 $ 69,195 $ 70,898
Gross margin, GAAP 34.2% 27.3% 34.2% 25.2% 34.1%
Adjustments:
Cost of revenues
Change in excess and
obsolete inventory
reserve 575 805 980 6,059 405
Amortization of acquired
technology 1,200 1,192 2,392 2,384 1,192
Stock compensation 1,310 1,288 2,056 2,319 746
Reduction in force costs 6 35 42 176 36
-------- -------- -------- -------- --------
Total cost of revenue
adjustments 3,091 3,320 5,470 10,938 2,379
Gross profit, non-GAAP 85,491 43,113 158,768 80,133 73,277
Gross margin, non-GAAP 35.5% 29.6% 35.4% 29.2% 35.2%
Reconciliation of GAAP
operating income (loss)
to non-GAAP operating
income (loss):
Operating income (loss)
per GAAP 36,105 (1,963) 59,852 (10,749) 23,747
Operating margin
(deficit), GAAP 15.0% -1.3% 13.3% -3.9% 11.4%
Adjustments:
Total cost of revenue
adjustments 3,091 3,320 5,470 10,938 2,379
Research and development
Reduction in force costs - - 5 29 5
Stock compensation 1,702 1,490 2,739 3,015 1,037
Sales and marketing
Reduction in force costs 81 - 155 - 74
Stock compensation 528 431 979 1,009 451
General and administrative
Reduction in force costs 50 200 92 249 42
Stock compensation 1,422 726 2,447 1,762 1,025
Payroll taxes related to
options investigation - 17 - 200 -
Litigation settlement (2,465) - (2,565) 327 (100)
Amortization of purchased
intangibles 383 518 766 1,219 383
Restructuring costs - 4,173 - 4,173 -
-------- -------- -------- -------- --------
Total cost of revenue
and operating expense
adjustments 4,792 10,875 10,088 22,921 5,296
Operating income,
non-GAAP 40,897 8,912 69,940 12,172 29,043
Operating margin,
non-GAAP 17.0% 6.1% 15.6% 4.4% 14.0%
Reconciliation of GAAP
income (loss) to
non-GAAP income (loss)
from continuing
operations:
Income (loss) per GAAP
from continuing
operations 33,796 (31,417) 53,206 (42,533) 19,410
Total cost of revenue and
operating expense
adjustments 4,792 10,875 10,088 22,921 5,296
Non-cash imputed interest
expenses on convertible
debt 367 1,056 742 2,291 375
Loss on
repayment/purchase of
convertible notes - 25,067 - 25,067 -
Other income (expense),
net
Loss (gain) on sale of
assets (9) 254 7 275 16
Loss on minority
investments - 2,000 - 1,625 -
Other misc income (58) - (58) (2) -
Foreign exchange
transaction
loss/(gain) (471) (291) (538) (335) (67)
Provision for income tax
Difference between cash
payable for taxes and
GAAP provision, less
non-recurring items (115) - 667 - 782
-------- -------- -------- -------- --------
Total adjustments 4,506 38,961 10,908 51,842 6,402
-------- -------- -------- -------- --------
Income, non-GAAP, from
continuing operations 38,302 7,544 64,114 9,309 25,812
-------- -------- -------- -------- --------
Reconciliation of GAAP
income (loss) to
non-GAAP income (loss)
from discontinued
operations:
Income (loss) per GAAP
from discontinued
operations - (67) (284) 37,012 (284)
Adjustments:
Reduction in force costs - - - 6 -
Stock compensation - - - 704 -
Amortization of acquired
technology - - - 170 -
Amortization of purchased
intangibles - - - 77 -
Gain (loss) on disposal
of a product line - - - (1,250) -
Gain on disposal of
discontinued
operations - - - (36,053) -
-------- -------- -------- -------- --------
Total adjustments - - - (36,346) -
-------- -------- -------- -------- --------
Income (loss) from
discontinued operations,
non-GAAP - (67) (284) 666 (284)
-------- -------- -------- -------- --------
Reconciliation of GAAP
net income (loss) to
non-GAAP net income
(loss):
Net income (loss) per
GAAP 33,796 (31,484) 52,922 (5,521) 19,126
Total adjustments
from continuing
operations 4,506 38,961 10,908 51,842 6,402
Total adjustments
from discontinuing
operations - - - (36,346) -
-------- -------- -------- -------- --------
Total adjustments 4,506 38,961 10,908 15,496 6,402
-------- -------- -------- -------- --------
Net income, non-GAAP $ 38,302 $ 7,477 $ 63,830 $ 9,975 $ 25,528
======== ======== ======== ======== ========
Income from continuing
operations $ 38,302 $ 7,544 $ 64,114 $ 9,309 $ 25,812
Add: interest expense for
dilutive convertible
notes 1,374 - 2,752 - 1,378
-------- -------- -------- -------- --------
Adjusted income from
continuing operations $ 39,676 $ 7,544 $ 66,866 $ 9,309 $ 27,190
======== ======== ======== ======== ========
Income per share from
continuing operations -
basic $ 0.50 $ 0.12 $ 0.84 $ 0.15 $ 0.34
Income per share from
continuing operations -
diluted $ 0.44 $ 0.11 $ 0.75 $ 0.15 $ 0.31
Shares used in computing
net income per share
from continuing
operations - basic 76,766 64,198 76,433 62,157 76,111
Shares used in computing
net income per share
from continuing
operations - diluted 89,521 65,655 89,013 63,442 88,215
Continuing operations
Net income, non-GAAP $ 38,302 $ 7,544 $ 64,114 $ 9,309 $ 25,812
Depreciation expense 8,684 7,182 16,850 14,354 8,166
Amortization 289 181 578 308 289
Interest expense 1,567 1,102 3,255 2,291 1,688
Income tax expense 682 38 1,983 197 1,301
-------- -------- -------- -------- --------
Non-GAAP EBITDA $ 49,524 $ 16,047 $ 86,780 $ 26,459 $ 37,256
-------- -------- -------- -------- --------
Discontinued operations
Net income (loss),
non-GAAP - (67) (284) 666 (284)
Depreciation expense - - - 119 -
-------- -------- -------- -------- --------
Non-GAAP EBITDA $ - $ (67) $ (284) $ 785 $ (284)
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total Non-GAAP EBITDA $ 49,524 $ 15,980 $ 86,496 $ 27,244 $ 36,972
======== ======== ======== ======== ========
Investor Contact:
Kurt Adzema
Chief Financial Officer
408-542-5050 or Investor.relations@finisar.com
Press contact:
Victoria McDonald
Sr. Manager, Corporate Communications
408-542-4261
