Finisar reported earnings results for the third quarter ended Jan. 31, 2016. For the quarter, revenues decreased to $309.2 million, a decrease of $11.9 million or 3.7% from $321.1 million in the preceding quarter. Non-GAAP income was $26.6 million or $0.25 per diluted share compared to $26.9 million or $0.25 diluted share in the preceding quarter. Capital expenditures totaled $26.8 million. If include all these items as required under GAAP, the company generated net income of $12.1 million or $0.11 per diluted share compared to net income of $6.6 million or $0.06 per diluted share in the preceding quarter.

For fourth quarter of fiscal 2016, the company expects revenues in the range of $307 million to $327 million and non-GAAP earnings per diluted share are expected to be between $0.22 and $0.28 per share. Capital expenditures are expected to be approximately $33 million in the fourth quarter. Estimated non-GAAP taxes for the fourth fiscal quarter to be approximately $1 million. The company expects fourth quarter non-GAAP gross margins to be approximately 30% as the positive impact of favorable product mix is offset by the impact of 3 months of the annual telecom price reductions. Non-GAAP operating margins are expected to be between 8.2% and 9.2%.

Non-GAAP taxes for fiscal 2017 are estimated to be approximately 7%.