Finisar Corporation Guides Q1 Lower

Shares of Finisar Corporation

are currently halted in the after-hours trade, but are likely to move lower after the company reported Q4 earnings results and guided lower for Q1. Shares closed the regular session lower by 6.88%, at $17.73. Finisar Corporation reported Q4 EPS of $0.33 on revenues of $236.9 million; the Street was looking for $0.33 per share on revenues of $243.3 million. Revenues increased 25.7% year over year. The company issued downside guidance for Q1, saying it sees EPS in the range of $0.17-0.21 on revenues of $215-230 million; the Street was at $0.39 per share on revenues of $255.30 million. "During the quarter we continued to invest in our new product development programs, including tunable XFP, to generate a significant pipeline of new products. We expect this pipeline will enable us to win new opportunities with both LAN/SAN and telecom customers and expand our market share. We are currently in qualification with fifteen customers for our tunable XFP transceiver and expect production of this product to start to ramp during the first fiscal quarter of 2012.” “In addition, on May 18, we successfully closed our previously announced cash tender offer for the shares of Ignis ASA. We now hold approximately 81% of the outstanding shares of Ignis. We believe Ignis's whole-owned subsidiary, Syntune, will provide us a secure supply of superior tunable lasers used in producing our tunable XFP transceiver," said Eitan Gertel, Finisar's Chief Executive Officer. Finisar Corporation is a provider of optical subsystems and components that connect short-distance local area networks, and storage area networks, and longer distance metropolitan area networks fiber-to-the-home networks, cable television networks and wide area networks.