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LONDON, UK / ACCESSWIRE / December 19, 2016 / Active Wall St. announces its post-earnings coverage on Finisar Corp. (NASDAQ: FNSR). The Company released its financial results for second quarter fiscal 2017 on December 08, 2016. The fiber optic component supplier posted all-time quarterly records for revenues and profits in the reported quarter, outperforming market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Finisar's competitors within the Networking & Communication Devices space, Cisco Systems, Inc. (NASDAQ: CSCO), announced on December 07, 2016, that its Board of Directors declared a quarterly dividend of $0.26 per common share to be paid on January 25, 2017 to all shareholders of record as of the close of business on January 06, 2017. AWS will be initiating a research report on Cisco Systems in the coming days.

Today, AWS is promoting its earnings coverage on FNSR; touching on CSCO. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=FNSR

http://www.activewallst.com/registration-3/?symbol=CSCO

Earnings Reviewed

For the quarter ended on December 30, 2016, Finisar reported revenues of $369.86 million, an increase of $28.5 million, or 8.4%, from $341.3 million in the previous quarter and an increase of $48.7 million, or 15.2%, from $321.14 reported in the year earlier same quarter. The Company's revenue figures surpassed Wall Street's expectations of $364.5 million.

Finisar reported Q2 FY17 GAAP earnings of $48.77 million, or $0.43 per fully diluted share, compared to GAAP earnings of $6.64 million, or $0.06 per diluted share, for Q2 FY16, primarily due to higher revenue levels and improved gross margins. On an adjusted basis, Finisar posted earnings per fully diluted share of $0.58 per share. The adjusted earnings figures easily outperformed analysts' estimates of $0.46 per share.

Segment Results

During Q2 FY17, sales of Finisar's telecom products increased by $9.7 million, or 9.9%, compared to Q1 FY17. This increase was due primarily to higher sales of 100G transceivers, as well as wavelength selective switch and ROADM line card products. During the reported quarter, sales of company's datacom products increased by $18.8 million, or 7.7%, compared to the preceding quarter. This increase was due primarily to growth in demand for 100G transceivers.

In Q2 FY17, sales of Finisar's 100G transceivers for datacom applications increased approximately 30% compared to Q1 FY17, and more than 80% compared to the second quarter of the prior fiscal year. Sales of 40G datacom transceivers were approximately flat compared to the previous quarter.

Operating Metrics

During Q2 FY17, Finisar's GAAP gross margin improved to 36.1% compared to 31.7% in Q1 FY17, primarily due to favorable product mix and the operational leverage from our vertical integration. The company's GAAP operating expenses during the reported quarter were $80.9 million compared to $79.9 million in the preceding quarter. GAAP operating expenses as a percentage of revenue decreased to approximately 21.9% of revenue in Q2 FY17 compared to 23.4% in Q1 FY17. Finisar's Q2 FY17 GAAP operating margin improved to 14.3% from 8.3% in Q1 FY17.

Balance Sheet

As on October 30th, 2016, Finisar's cash, cash equivalents, and short-term investments increased $32.5 million to $626.3 million compared to $593.8 million as of July 31, 2016.

Outlook

Finisar indicated that for Q3 FY17, it currently expects revenues in the range of $378 million to $398 million, non-GAAP gross margin of approximately 37% to 38%, non-GAAP operating margin of approximately 18.5% to 19.5%, and non-GAAP earnings per fully diluted share in the range of approximately $0.58 to $0.64. Capital expenditures for the upcoming Q3 FY17 are estimated to be approximately $40 million.

Convertible Notes

In a separate press release on December 16, 2016, Finisar announced the pricing of its previously announced offering of $500,000,000 aggregate principal amount of its 0.50% Convertible Senior Notes due 2036 in a private placement. The offering was upsized from the previously announced $450,000,000 aggregate principal amount of Notes. Finisar has granted the initial purchasers of the Notes a 30-day option to purchase up to an additional $75,000,000 aggregate principal amount of the Notes, solely to cover over-allotments. The offering is expected to close on or about December 21, 2016, subject to satisfaction of customary closing conditions.

The Notes will be unsecured and unsubordinated obligations of Finisar. Interest on the Notes will be paid semi-annually in arrears on June 15 and December 15 of each year, commencing June 15, 2017, at a rate of 0.50% per annum. The Notes will mature on December 15, 2036, unless earlier converted, repurchased or redeemed.

The Company expects to use the net proceeds from this offering for general corporate purposes, including working capital, and may also use a portion of the net proceeds to acquire complementary businesses, products or technologies.

Stock Performance

Finisar's share price finished last Friday's trading session at $31.17, slipping 4.74%. A total volume of 7.94 million shares exchanged hands, which was higher than the 3 months average volume of 1.97 million shares. The stock has rallied 65.53% and 112.33% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have skyrocketed 114.37%. The stock is trading at a PE ratio of 35.50 and currently has a market cap of $3.62 billion.

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SOURCE: Active Wall Street