Upcoming AWS Coverage on MRV Communications Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 23, 2017 / Active Wall St. announces its post-earnings coverage on Finisar Corp. (NASDAQ: FNSR). The Company reported its financial results for its third quarter fiscal 2017 on March 09, 2017. The fiber-optics equipment Company achieved other new all-time quarterly records for revenues and non-GAAP profits in the reported quarter. 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, MRV Communications, Inc. (NASDAQ: MRVC), reported on March 09, 2017, its financial results for the three- and twelve-months ended December 31, 2016. AWS will be initiating a research report on MRV Communications in the coming days.

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

http://www.activewallst.com/register/

Earnings Reviewed

For the fiscal third quarter ended January 29, 2017, Finisar generated revenues of $380.59 million, up 23%, compared to revenue of $309.21 million in Q3 FY16. The Company's sales numbers lagged behind analysts' consensus of $389.7 million.

For Q3 FY17, Finisar's datacom products sales increased by $7.3 million, or 2.8% sequentially. This increase was primarily attributed to growth in demand for 100G transceivers. Sales of 100G transceivers for datacom applications increased approximately 9% compared to Q2 FY17 and over 110% compared to Q3 FY16.

During Q3 FY17, Finisar's sales of telecom products improved $3.5 million, or 3.2%, compared to Q2 FY17. This increase was due primarily to higher sales of wavelength selective switch and ROADM line card products, primarily driven by the Company's Chinese OEM customers.

For Q3 FY17, Finisar reported GAAP gross margin of 35.9% compared to 36.1% in Q2 FY17. The Company's non-GAAP gross margin was 37.0% in the reported quarter compared to 37.2% in the previous quarter. Finisar's GAAP operating margin was 14.4% for Q3 FY17 compared to 14.3% in Q2 FY17. The Company's non-GAAP operating margin was 18.5% for the reported quarter versus 8.5% in the prior quarter.

Finisar posted GAAP earnings of $46.39 million, or $0.40 per fully diluted share, compared to GAAP earnings of $12.08 million, or $0.11 per fully diluted share, in the year earlier same quarter. Non-GAAP earnings per fully diluted share were $0.59 versus $0.25 in Q3 FY16. The Company's earnings numbers missed Wall Street's expectations of $0.62 per share.

Cash Flow & Balance Sheet

Finisar's cash, cash equivalents, and short-term investments increased $588.0 million to approximately $1.2 billion at the end of Q3 FY17 compared to $626.3 million at the end of Q2 FY17. This increase was primarily due to the issuance of $575.0 million of 0.50% convertible notes due in December 2036, which yielded net proceeds of $569.3 million.

The Company's capital expenditures were approximately $42 million in Q3 FY17 and are forecasted to be approximately $50 million in Q4 FY17. The increase in capital expenditures in the upcoming quarter will be driven by the expansion of capacity in Finisar's VCSEL laser FAB in Allen, Texas to enable the Company to pursue new 3D sensing opportunities for consumer applications. Additionally, at the beginning of Q4 FY17, Finisar acquired the rights to a parcel of land adjacent to its current manufacturing facility in Wuxi, China. The Company expects to start construction of a building on the site, whose primary use will be manufacturing. Finisar expects the construction of this building to be completed in H2 2018.

Outlook

Finisar indicated that for Q4 FY17 it expects revenues in the range of $360 million to $380 million, non-GAAP gross margin of approximately 36%, non-GAAP operating margin of approximately 17%, and non-GAAP earnings per fully diluted share in the range of approximately $0.50 to $0.56.

Stock Performance

On Wednesday, March 22, 2017, Finisar's share price finished the trading session at $27.59, rising 2.00%. A total volume of 2.28 million shares exchanged hands. The stock has surged 48.02% in the past twelve months. The stock is trading at a PE ratio of 23.58 and currently has a market cap of $3.07 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street