Finisar Corporation announced financial results for its second quarter of fiscal year 2017, ended October 30, 2016.
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Revenues were $369.9 million, an increase of $28.5 million, or 8.4%, from $341.3 million in the first quarter.
Sales of telecom products increased by $9.7 million, or 9.9%, compared to the first quarter. This increase was due primarily to higher sales of 100G transceivers, as well as wavelength selective switch and ROADM line card products.
Sales of datacom products increased by $18.8 million, or 7.7%, compared to the first quarter. This increase was due primarily to growth in demand for 100G transceivers. Sales of 100G transceivers for datacom applications increased approximately 30% compared to the first quarter, 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 first quarter.
GAAP gross margin improved to 36.1%, compared to 31.7% in the first quarter, primarily due to favorable product mix and the operational leverage from our vertical integration.
Non-GAAP gross margin improved to 37.2% compared to 33.1% in the first quarter.
GAAP operating expenses were $80.9 million compared to $79.9 million in the first quarter. GAAP operating expenses as a percentage of revenue decreased to approximately 21.9% of revenue compared to 23.4% in the first quarter.
Non-GAAP operating expenses were $69.4 million compared to $69.3 million in the first quarter. Non-GAAP operating expenses as a percentage of revenue decreased to approximately 18.8% compared to 20.3% in the first quarter.
GAAP operating margin improved to 14.3% from 8.3% in the first quarter.
Non-GAAP operating margin improved to 18.5% from 12.8% in the first quarter.
GAAP earnings per fully diluted share was $0.43 compared to $0.22 in the first quarter, primarily due to higher revenue levels and improved gross margins.
Non-GAAP earnings per fully diluted share was $0.58 compared to $0.38 in the preceding quarter.
Cash, cash equivalents and short-term investments increased $32.5 million to $626.3 million at the end of the second quarter, compared to $593.8 million at the end of the preceding quarter. ■