Shares of Finisar Corp. (FNSR: Quote) gained more than 2 percent in extended trade Thursday after the fiber optics equipment maker's third-quarter adjusted earnings beat analysts' expectations. The company also forecast results for the fourth quarter in line with analysts' estimates.
Sunnyvale, California-based Finisar makes optical subsystems and components for use in fiber optics-based data communication and telecommunication networks applications. The company reported a loss for the third quarter, reflecting lower revenues and higher expenses. The latest quarter's results include impairment of long-lived assets of $4.89 million and amortization of purchased intangibles of $1.04 million.
Provision for income taxes for the quarter was $2.15 million, compared to $0.88 million in the same period last year.
Finisar's third-quarter net loss was $3.41 million or $0.04 per share, compared with net income of $8.91 million or $0.09 per share in the year-ago period.
Excluding items, adjusted earnings for the quarter were $16.93 million or $0.17 per share, compared with adjusted earnings of $22.42 million or $0.23 per share in the prior-year period. On average, fourteen analysts polled by Thomson Reuters expected earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter declined 2 percent to $238.51 million from $242.95 million in the year-ago period. Analysts had a consensus revenue estimate for the quarter of $238.36 million.
However, revenues increased 3 percent from the preceding second quarter, primarily driven by growth in revenues from 10G and 100G transceivers and transponders for datacom applications.
Gross margin declined to 28.5 percent from 29.3 percent in the same period last year.
Looking ahead to the fourth quarter, Finisar expects adjusted earnings of $0.15 to $0.19 per share on revenues in a range of $235 million to $250 million. Analysts currently expect earnings of $0.17 per share for the quarter on revenues of $241 million.
FNSR closed Thursday's regular trading at $15.84, up $0.83 or 5.53 percent on a volume of 5.76 million shares. In after-hours, the stock further gained $0.40 or 2.53 percent to $16.24.
by RTT Staff Writer
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