Record Quarterly Revenues of $240.9 Million
Net Income from Continuing Operations Sets a New Record
Non-GAAP Operating Margin Reaches 17.0%
Non-GAAP Diluted Earnings per Share of $0.44, Up 42% Quarter-Over-Quarter
FINANCIAL HIGHLIGHTS - SECOND QUARTER ENDED October 31, 2010 Second Second First Quarter Quarter Quarter Summary Results per GAAP Ended Ended Ended October 31, November 1, August 1, 2010 2009 2010 ---------- --------- ---------- (in thousands, except per share amounts) Continuing operations Revenues $ 240,943 $ 145,730 $ 207,882 Gross margin 34.2% 27.3% 34.1% Operating expenses $ 46,295 $ 41,756 $ 47,151 Operating income (loss) $ 36,105 $ (1,963) $ 23,747 Operating margin (deficit) 15.0% (1.3)% 11.4% Income (loss) $ 33,796 $ (31,417) $ 19,410 Income (loss) per share-basic $ 0.44 $ (0.49) $ 0.26 Income (loss) per share-diluted $ 0.39 $ (0.49) $ 0.24 Basic shares 76,766 64,198 76,111 Diluted shares 89,521 64,198 88,215 Second Second First Quarter Quarter Quarter Non-GAAP Results (a) Ended Ended Ended October 31, November 1, August 1, 2010 2009 2010 ---------- --------- ---------- (in thousands, except per share amounts) Continuing operations Revenues $ 240,943 $ 145,730 $ 207,882 Gross margin 35.5% 29.6% 35.2% Operating expenses $ 44,594 $ 34,201 $ 44,234 Operating income $ 40,897 $ 8,912 $ 29,043 Operating margin 17.0% 6.1% 14.0% Income $ 38,302 $ 7,544 $ 25,812 Income per share-basic $ 0.50 $ 0.12 $ 0.34 Income per share-diluted $ 0.44 $ 0.11 $ 0.31 Basic shares 76,766 64,198 76,111 Diluted shares 89,521 65,655 88,215 (a) In evaluating the operating performance of Finisar's business, Finisar management utilizes financial measures that exclude certain charges and credits required by U.S. generally accepted accounting principles, or GAAP, that are considered by management to be outside Finisar's core operating results. A reconciliation of Finisar's non-GAAP financial measures to the most directly comparable GAAP measures, as well as additional related information can be found under the heading "Finisar Non-GAAP Financial Measures" below.Highlights for the second quarter of fiscal 2011 under GAAP:
-- Revenues increased to $240.9 million, up $33.1 million, or 15.9%, from $207.9 million in the preceding quarter and up $95.2 million, or 65.3%, from $145.7 million in the second quarter of the prior year. -- Compared to the preceding quarter, the sale of 10 Gbps or faster products increased $13.3 million, or 14.1%, the sale of less than 10 Gbps products increased $12.1 million, or 15.4%, the sale of ROADM related products, including wavelength selective switches (WSS) increased $8.3 million, or 27.3%, and the sale of products for analog and cable television (CATV) applications decreased $0.7 million, or (15.6)%. -- Compared to the second quarter of the prior year, the sale of 10 Gbps or faster products increased $52.0 million, or 94.0%, the sale of less than 10 Gbps products increased $21.3 million, or 30.5%, the sale of ROADM related products increased $23.3 million, or 151.0%, and the sale of products for CATV applications decreased $1.4 million, or (28.6)%. -- Gross margin increased to 34.2% from 34.1% in the preceding quarter and 27.3% in the second quarter of the prior year. -- Operating income increased to $36.1 million, or 15.0% of revenues, compared to $23.7 million, or 11.4% of revenues, in the preceding quarter and an operating loss of $(2.0) million, or (1.3)% of revenues, in the second quarter of the prior year. -- Net income from continuing operations was $33.8 million, or $0.39 per diluted share, compared to $19.4 million, or $0.24 per diluted share, in the preceding quarter and a loss of $(31.4) million, or $(0.49) per share, in the second quarter of the prior year. -- Cash generated during the second quarter, after working capital adjustments and capital expenditures, excluding the items described in the next paragraph, totaled $18.0 million. Accounts receivable and inventory increased $20.8 million and $12.4 million, respectively. The increase in accounts receivable was driven by increased revenue levels as days sales outstanding, or DSOs, were 66 days compared to 67 days in the prior quarter. The increase in inventory was due in part to planned inventory build-up in anticipation of further revenue growth in the third quarter. Capital expenditures were $13.4 million compared to $12.1 million in the preceding quarter and $7.6 million in the second quarter of the prior year. -- In addition during the quarter, the Company received $11.3 million in cash, net of related legal fees, under a settlement and cross license agreement with Source Photonics, Inc. This settlement resolved a lawsuit brought by Finisar claiming infringement of Finisar patents. Finisar also paid $29.6 million in cash to retire convertible subordinated notes which matured on October 15, 2010 and made scheduled principal payments of an additional $1.0 million on its Malaysian debt. Finally, the Company used $5.9 million in cash to make a strategic minority investment in a small opto-electronics company. -- Cash and cash equivalents totaled $184.9 million at the end of the second quarter compared to $192.2 million at the end of the preceding quarter. -- Under Finisar's $70.0 million secured credit facility with Wells Fargo Foothill, LLC, no borrowings were outstanding and $66.6 million was available to borrow at the end of the second quarter.In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Finisar provides supplemental information regarding its operating performance on a non-GAAP basis. Finisar believes this supplemental information provides investors and management with additional insight into its underlying core operating performance by excluding a number of non-cash and cash charges, as well as infrequently occurring gains or losses principally related to acquisitions, the sale of minority investments, restructuring or other transition activities, legal settlements, impairments and financing transactions. For the second quarter of fiscal 2011, these excluded items related to continuing operations represented a net benefit of $4.5 million. Excluded benefits and charges included a benefit of $2.5 million representing the portion of the cash received under the settlement and cross license agreement with Source Photonics that was attributable to past damages, net of related legal fees; $5.0 million in non-cash stock-based compensation expenses; $1.6 million in non-cash amortization charges related to acquired developed technology and purchased intangibles arising from previous acquisitions; a $115,000 representing the difference between cash payments for income taxes and the related GAAP tax provision, less non-recurring items; $575,000 in non-cash charges related to slow-moving and excess inventory; and $367,000 in non-cash charges for imputed interest expense on the Company's debt obligations. Other excluded items are described in Finisar Non-GAAP Financial Measures below. Highlights for the second quarter of fiscal 2011 on a non-GAAP basis:
-- Non-GAAP gross margin was 35.5% compared to 35.2% in the preceding quarter and 29.6% in the second quarter of the prior year. The improvement in gross margin compared to the preceding quarter was due primarily to a favorable shift in product mix. The improvement compared to the prior year reflects both a favorable shift in product mix and a reduction in manufacturing unit costs due to higher shipment volumes. -- Non-GAAP operating expenses were $44.6 million, substantially unchanged from $44.2 million in the preceding quarter and an increase of $10.4 million from $34.2 million in the second quarter of the prior year. Operating expenses as a percent of revenues declined to 18.5% of revenue in the second quarter compared to 21.3% in the preceding quarter and 23.5% in the prior year due primarily to revenues growing faster than expenses. -- Non-GAAP operating income was $40.9 million, or 17.0% of revenues, up $11.9 million from $29.0 million, or 14.0% of revenues, in the preceding quarter, and up $32.0 million from $8.9 million, or 6.1% of revenues, in the second quarter of the prior year. -- Non-GAAP net income from continuing operations was $38.3 million, or $0.44 per diluted share, compared to net income of $ 25.8 million, or $0.31 per diluted share, in the preceding quarter and $7.5 million, or $0.11 per diluted share, in the second quarter of the prior year. -- Non-GAAP EBITDA rose to $49.5 million compared to $37.3 million in the preceding quarter and $16.0 million in the second quarter of the prior year.OUTLOOK The Company indicated that it currently expects revenues for its third fiscal quarter ending January 30, 2011 to be in the range of $247 to $262 million. On a GAAP basis, operating margin is expected to be greater than or equal to 14.0%. Additional non-cash and infrequently occurring charges and benefits excluded in calculating non-GAAP operating income are expected to total a net charge of approximately $7 to $8 million. As a result, on a non-GAAP basis, operating margin is expected to be greater than or equal to 17.0%. Non-GAAP earnings per diluted share is expected to be in the range of $0.45 to $0.47. CONFERENCE CALL Finisar will discuss its financial results for the second quarter and current business outlook during its regular quarterly conference call scheduled for Wednesday, December 1, 2010, at 2:00pm PST (5:00pm EST). To listen to the call you may connect through the Finisar investor relations page at http://investor.finisar.com/ or dial 1-888-211-7360 (domestic) or (913) 981-5554 (international) and enter conference ID 9676444. An audio replay will be available for two weeks following the call by dialing 1-888-203-1112 (domestic) or (719) 457-0820 and then following the prompts: enter conference ID 9676444 and provide your name, affiliation, and contact number. A replay of the webcast will be available shortly after the conclusion of the call on the Company's website until the next regularly scheduled earnings conference call. SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements included in this press release are based upon information available to Finisar as of the date hereof, and Finisar assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from those projected. Examples of such risks include those associated with: the uncertainty of customer demand for Finisar's products; the rapidly evolving markets for Finisar's products and uncertainty regarding the development of these markets; Finisar's historical dependence on sales to a limited number of customers and fluctuations in the mix of products and customers in any period; ongoing new product development and introduction of new and enhanced products; the challenges of rapid growth followed by periods of contraction; and intensive competition. Further information regarding these and other risks relating to Finisar's business is set forth in Finisar's annual report on Form 10-K (filed July 1, 2010) and quarterly SEC filings. ABOUT FINISAR Finisar Corporation (
Finisar Corporation Consolidated Statements of Operations Three Months Three Months Ended Six Months Ended Ended ------------------- ------------------ -------- October November October November August 31, 2010 1, 2009 31, 2010 1, 2009 1, 2010 -------- --------- -------- -------- -------- (Unaudited) (in thousands, except per share data) Revenues $240,943 $ 145,730 $448,825 $274,455 $207,882 Cost of revenues 157,343 104,745 293,135 202,875 135,792 Amortization of acquired developed technology 1,200 1,192 2,392 2,385 1,192 -------- --------- -------- -------- -------- Gross profit 82,400 39,793 153,298 69,195 70,898 Gross margin 34.2% 27.3% 34.2% 25.2% 34.1% Operating expenses: Research and development 28,148 21,575 54,765 42,622 26,617 Sales and marketing 9,247 7,313 18,322 14,132 9,075 General and administrative 8,517 8,177 19,593 17,798 11,076 Amortization of purchased intangibles 383 518 766 1,219 383 Restructuring costs - 4,173 - 4,173 - -------- --------- -------- -------- -------- Total operating expenses 46,295 41,756 93,446 79,944 47,151 -------- --------- -------- -------- -------- Income (loss) from operations 36,105 (1,963) 59,852 (10,749) 23,747 Interest income 143 9 235 19 92 Interest expense (2,077) (2,167) (4,232) (4,601) (2,155) Gain (loss) on repayment/purchase of convertible notes - (25,067) - (25,067) - Other income (expense), net 192 (2,191) - (1,938) (192) -------- --------- -------- -------- -------- Income (loss) from continuing operations before income taxes 34,363 (31,379) 55,855 (42,336) 21,492 Provision for (benefit from) income taxes 567 38 2,649 197 2,082 -------- --------- -------- -------- -------- Income (loss) from continuing operations 33,796 (31,417) 53,206 (42,533) 19,410 Income (loss) from discontinued operations, net of taxes - (67) (284) 37,012 (284) -------- --------- -------- -------- -------- Net income (loss) $ 33,796 $ (31,484) $ 52,922 $ (5,521) $ 19,126 ======== ========= ======== ======== ======== Income (loss) per share from continuing operations - basic $ 0.44 $ (0.49) $ 0.70 $ (0.68) $ 0.26 Income (loss) per share from continuing operations - diluted $ 0.39 $ (0.49) $ 0.63 $ (0.68) $ 0.24 Income (loss) per share from discontinued operations - basic $ - $ (0.00) $ (0.00) $ 0.60 $ (0.00) Income (loss) per share from discontinued operations - diluted $ - $ (0.00) $ (0.00) $ 0.60 $ (0.00) Shares used in computing net loss per share from continuing operations - basic 76,766 64,198 76,433 62,157 76,111 Shares used in computing net loss per share from continuing operations - diluted 89,521 64,198 89,013 62,157 88,215 Shares used in computing net income (loss) per share from discontinued operations - basic 76,766 64,198 76,433 62,157 76,111 Shares used in computing net income (loss) per share from discontinued operations - diluted 89,521 64,198 89,013 62,157 88,215 Finisar Corporation Consolidated Balance Sheets (In thousands) October 31, August 1, April 30, 2010 2010 2010 ----------- ----------- ----------- (unaudited) (unaudited) ASSETS Current assets: Cash and cash equivalents $ 184,928 $ 192,152 $ 207,024 Accounts receivable, net 173,243 152,477 127,617 Accounts receivable, other 11,826 9,885 12,855 Inventories 167,021 154,586 139,525 Deferred tax assets 1,559 852 2,238 Prepaid expenses 9,571 7,306 6,956 ----------- ----------- ----------- Total current assets 548,148 517,258 496,215 Property, equipment and improvements, net 100,960 93,386 89,214 Purchased technology, net 9,576 10,497 11,689 Other intangible assets, net 10,910 11,312 11,713 Minority investments 18,169 12,289 12,289 Other assets 4,995 5,131 5,610 ----------- ----------- ----------- Total assets $ 692,758 $ 649,873 $ 626,730 =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 86,598 $ 79,121 $ 76,838 Accrued compensation 21,861 14,479 18,289 Other accrued liabilities 19,426 19,450 21,076 Deferred revenue 8,475 6,290 6,571 Current portion of convertible notes - 29,214 28,839 Current portion of long-term debt 4,000 4,000 4,000 Non-cancelable purchase obligations 1,313 756 722 ----------- ----------- ----------- Total current liabilities 141,673 153,310 156,335 Long-term liabilities: Convertible notes, net of current portion 100,000 100,000 100,000 Long-term debt, net of current portion 13,250 14,250 15,250 Other non-current liabilities 12,762 6,102 6,260 Deferred tax liabilities 328 255 239 ----------- ----------- ----------- Total liabilities 268,013 273,917 278,084 Stockholders' equity: Common stock 77 76 76 Additional paid-in capital 2,048,708 2,038,636 2,030,373 Accumulated other comprehensive income 20,632 15,712 15,791 Accumulated deficit (1,644,672) (1,678,468) (1,697,594) ----------- ----------- ----------- Total stockholders' equity 424,745 375,956 348,646 ----------- ----------- ----------- Total liabilities and stockholders' equity $ 692,758 $ 649,873 $ 626,730 =========== =========== ===========FINISAR NON-GAAP FINANCIAL MEASURES In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Finisar provides supplemental information regarding the Company's operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or which occur relatively infrequently and which management considers to be outside our core operating results. Some of these non-GAAP measures also exclude the ongoing impact of historical business decisions made in different business and economic environments. Management believes that tracking non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share provides management and the investment community with valuable insight into our current operations, our ability to generate cash and the underlying business trends which are affecting our performance. These non-GAAP measures are used by both management and our Board of Directors, along with the comparable GAAP information, in evaluating our current performance and planning our future business activities. In particular, management finds it useful to exclude non-cash charges in order to better correlate our operating activities with our ability to generate cash from operations and to exclude non-recurring and infrequently incurred cash charges as a means of more accurately predicting our liquidity requirements. We believe that these non-GAAP measures, when used in conjunction with our GAAP financial information, also allow investors to better evaluate our financial performance in comparison to other periods and to other companies in our industry. In calculating non-GAAP gross profit in this release, we have excluded the following items from cost of revenues in applicable periods:
-- Changes in excess and obsolete inventory reserve (predominantly non-cash charges or non-cash benefits); -- Amortization of acquired technology (non-cash charges related to technology obtained in acquisitions); -- Stock-based compensation expense (non-cash charges); and -- Reduction in force costs (non-recurring charges).In calculating non-GAAP operating income in this release, we have excluded the same items to the extent they are classified as operating expenses, and have also excluded the following items in applicable periods:
-- The cost of covering employee and employer tax liabilities (non-recurring cash charges) arising from the special investigation into our historical stock option granting practices; and -- Gain or loss on settlement of lawsuits (non-recurring charges).In calculating non-GAAP income from continuing operations and non-GAAP income from continuing operations per share in this release, we have also excluded the following items in applicable periods:
-- Amortization of discount on convertible debt and imputed interest expense (non-cash charges); -- Losses on repayment/purchase of convertible notes (non-recurring and non-cash charges); -- Gains and losses on sales of assets (non-recurring or non-cash losses and cash gains related to the periodic disposal of assets no longer required for current activities); -- Gains and losses on minority investments (infrequently occurring and principally non-cash gains and losses related to the disposal of investments in other companies and non-cash income or loss from these investments accounted for under the equity method); -- Other miscellaneous income; -- Foreign exchange transaction losses (gains) (non-recurring and non-cash charges); and -- Differences between cash payable for tax and GAAP provision, less non-recurring items.In calculating non-GAAP income (loss) from discontinued operations and non-GAAP income (loss) from discontinued operations per share in this release, we have also excluded gains on disposal of a product line and disposal of discontinued operations. A reconciliation of this non-GAAP financial information to the corresponding GAAP information is set forth below:
Finisar Corporation Reconciliation of Results of Operations under GAAP and non-GAAP Three Months Three Months Ended Six Months Ended Ended ------------------ ------------------ -------- October November October November August 31, 2010 1, 2009 31, 2010 1, 2009 1, 2010 -------- -------- -------- -------- -------- (Unaudited) (in thousands, except per share data) Reconciliation of GAAP income (loss) to non-GAAP income (loss) from continuing operations Reconciliation of GAAP Gross Profit to non-GAAP Gross Profit: Gross profit per GAAP $ 82,400 $ 39,793 $153,298 $ 69,195 $ 70,898 Gross margin, GAAP 34.2% 27.3% 34.2% 25.2% 34.1% Adjustments: Cost of revenues Change in excess and obsolete inventory reserve 575 805 980 6,059 405 Amortization of acquired technology 1,200 1,192 2,392 2,384 1,192 Stock compensation 1,310 1,288 2,056 2,319 746 Reduction in force costs 6 35 42 176 36 -------- -------- -------- -------- -------- Total cost of revenue adjustments 3,091 3,320 5,470 10,938 2,379 Gross profit, non-GAAP 85,491 43,113 158,768 80,133 73,277 Gross margin, non-GAAP 35.5% 29.6% 35.4% 29.2% 35.2% Reconciliation of GAAP operating income (loss) to non-GAAP operating income (loss): Operating income (loss) per GAAP 36,105 (1,963) 59,852 (10,749) 23,747 Operating margin (deficit), GAAP 15.0% -1.3% 13.3% -3.9% 11.4% Adjustments: Total cost of revenue adjustments 3,091 3,320 5,470 10,938 2,379 Research and development Reduction in force costs - - 5 29 5 Stock compensation 1,702 1,490 2,739 3,015 1,037 Sales and marketing Reduction in force costs 81 - 155 - 74 Stock compensation 528 431 979 1,009 451 General and administrative Reduction in force costs 50 200 92 249 42 Stock compensation 1,422 726 2,447 1,762 1,025 Payroll taxes related to options investigation - 17 - 200 - Litigation settlement (2,465) - (2,565) 327 (100) Amortization of purchased intangibles 383 518 766 1,219 383 Restructuring costs - 4,173 - 4,173 - -------- -------- -------- -------- -------- Total cost of revenue and operating expense adjustments 4,792 10,875 10,088 22,921 5,296 Operating income, non-GAAP 40,897 8,912 69,940 12,172 29,043 Operating margin, non-GAAP 17.0% 6.1% 15.6% 4.4% 14.0% Reconciliation of GAAP income (loss) to non-GAAP income (loss) from continuing operations: Income (loss) per GAAP from continuing operations 33,796 (31,417) 53,206 (42,533) 19,410 Total cost of revenue and operating expense adjustments 4,792 10,875 10,088 22,921 5,296 Non-cash imputed interest expenses on convertible debt 367 1,056 742 2,291 375 Loss on repayment/purchase of convertible notes - 25,067 - 25,067 - Other income (expense), net Loss (gain) on sale of assets (9) 254 7 275 16 Loss on minority investments - 2,000 - 1,625 - Other misc income (58) - (58) (2) - Foreign exchange transaction loss/(gain) (471) (291) (538) (335) (67) Provision for income tax Difference between cash payable for taxes and GAAP provision, less non-recurring items (115) - 667 - 782 -------- -------- -------- -------- -------- Total adjustments 4,506 38,961 10,908 51,842 6,402 -------- -------- -------- -------- -------- Income, non-GAAP, from continuing operations 38,302 7,544 64,114 9,309 25,812 -------- -------- -------- -------- -------- Reconciliation of GAAP income (loss) to non-GAAP income (loss) from discontinued operations: Income (loss) per GAAP from discontinued operations - (67) (284) 37,012 (284) Adjustments: Reduction in force costs - - - 6 - Stock compensation - - - 704 - Amortization of acquired technology - - - 170 - Amortization of purchased intangibles - - - 77 - Gain (loss) on disposal of a product line - - - (1,250) - Gain on disposal of discontinued operations - - - (36,053) - -------- -------- -------- -------- -------- Total adjustments - - - (36,346) - -------- -------- -------- -------- -------- Income (loss) from discontinued operations, non-GAAP - (67) (284) 666 (284) -------- -------- -------- -------- -------- Reconciliation of GAAP net income (loss) to non-GAAP net income (loss): Net income (loss) per GAAP 33,796 (31,484) 52,922 (5,521) 19,126 Total adjustments from continuing operations 4,506 38,961 10,908 51,842 6,402 Total adjustments from discontinuing operations - - - (36,346) - -------- -------- -------- -------- -------- Total adjustments 4,506 38,961 10,908 15,496 6,402 -------- -------- -------- -------- -------- Net income, non-GAAP $ 38,302 $ 7,477 $ 63,830 $ 9,975 $ 25,528 ======== ======== ======== ======== ======== Income from continuing operations $ 38,302 $ 7,544 $ 64,114 $ 9,309 $ 25,812 Add: interest expense for dilutive convertible notes 1,374 - 2,752 - 1,378 -------- -------- -------- -------- -------- Adjusted income from continuing operations $ 39,676 $ 7,544 $ 66,866 $ 9,309 $ 27,190 ======== ======== ======== ======== ======== Income per share from continuing operations - basic $ 0.50 $ 0.12 $ 0.84 $ 0.15 $ 0.34 Income per share from continuing operations - diluted $ 0.44 $ 0.11 $ 0.75 $ 0.15 $ 0.31 Shares used in computing net income per share from continuing operations - basic 76,766 64,198 76,433 62,157 76,111 Shares used in computing net income per share from continuing operations - diluted 89,521 65,655 89,013 63,442 88,215 Continuing operations Net income, non-GAAP $ 38,302 $ 7,544 $ 64,114 $ 9,309 $ 25,812 Depreciation expense 8,684 7,182 16,850 14,354 8,166 Amortization 289 181 578 308 289 Interest expense 1,567 1,102 3,255 2,291 1,688 Income tax expense 682 38 1,983 197 1,301 -------- -------- -------- -------- -------- Non-GAAP EBITDA $ 49,524 $ 16,047 $ 86,780 $ 26,459 $ 37,256 -------- -------- -------- -------- -------- Discontinued operations Net income (loss), non-GAAP - (67) (284) 666 (284) Depreciation expense - - - 119 - -------- -------- -------- -------- -------- Non-GAAP EBITDA $ - $ (67) $ (284) $ 785 $ (284) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total Non-GAAP EBITDA $ 49,524 $ 15,980 $ 86,496 $ 27,244 $ 36,972 ======== ======== ======== ======== ========
Contact Information: Investor Contact: Kurt Adzema Chief Financial Officer 408-542-5050 or Investor.relations@finisar.com Press contact: Victoria McDonald Sr. Manager, Corporate Communications 408-542-4261