Contact Information: Contact: Steve Workman Chief Financial Officer 408-548-1000 Victoria McDonald Senior Manager, Corporate Communications 408-542-4261 investor.relations@Finisar.com
Finisar Announces Agreement to Sell Network Tools Business
| Source: Finisar
SUNNYVALE, CA--(Marketwire - July 9, 2009) - Finisar Corporation (NASDAQ : FNSR ), a global
technology leader for fiber optic subsystems, today announced that it has
entered into a definitive agreement to sell its Network Tools business
(excluding accounts receivable and payables related to the business) to
JDSU (NASDAQ : JDSU ) for $40.6 million in cash. The sale is expected to be
completed on or about July 15, 2009 after which Finisar will provide
support services to JDSU during a transition period.
Finisar's Network Tools Division has developed a leading position in the
market for data protocol analysis equipment. These analyzers allow
engineers, service technicians and network managers to generate and capture
data at high speeds, filter the data, identify various types of
intermittent errors and verify protocol compliance for SANs and LANs,
including emerging technologies such as VOIP, 10GigE, iSCSI, SAS/SATA and
FCoE. Because of the Company's early work in developing the Fibre Channel
standard for storage networks in 1994, it has cultivated a leading share of
the test equipment market for SAN applications.
"The recent Optium merger helped underscore the fact that we are primarily
an optics company and that, for the Network Tools business to continue to
grow and be successful, it needs to have a larger presence and a broader
product line," said Jerry Rawls, Finisar's executive Chairman of the
Board. "I confess I have mixed emotions about the sale as we started this
business in the early '90s and have had a long track record of successes.
We have helped our SAN customers create more reliable storage networks with
robust interoperability. But, the sale of this business will enable us to
focus all of our attention and resources on what we do best: design next
generation products for optical communications."
"I want to wish the employees of Network Tools much success in the future,"
added Rawls. "I appreciate all their hard work in creating exciting
products, building a profitable business and delivering value and service
to our customers."
The Network Tools business contributed revenues of approximately $44.2
million in Finisar's fiscal year ended April 30, 2009 and contributed in
excess of $7 million in EBITDA.
Finisar noted that its previous revenue guidance of $120 to $130 million
for the first quarter ending August 2, 2009 remains unchanged despite the
sale of the Network Tools business, but also noted that its gross margin
guidance would likely decrease slightly due to a shift in product mix, with
lower revenues (due to a prorated quarter) from higher-margin Network Tools
products offsetting a similar increase in optics revenues. The Company
also noted that it would record a one-time nonrecurring gain in the first
quarter associated with the sale.
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. Additional risks include the potential impact of
pending civil litigation arising from the investigation of Finisar's
historical option granting practices. 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 9, 2009).
ABOUT FINISAR
Finisar Corporation (NASDAQ : FNSR ) is a global technology leader for fiber
optic subsystems that enable high-speed voice, video and data
communications for networking, storage, wireless, and cable TV
applications. For more than 20 years, Finisar has provided critical optics
technologies to system manufacturers to meet the increasing demands for
network bandwidth and storage. Finisar is headquartered in Sunnyvale,
California, USA with R&D, manufacturing sites, and sales offices worldwide.
For additional information, visit www.finisar.com.