Finisar Corporation announced financial results for its fourth quarter ended May 3, 2015. Revenues increased to $320 million, up $13.8 million, or 4.5%, from $306.3 million in the preceding quarter.
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Sales of products for datacom applications increased by $7.6 million, or 3.2%, compared to the preceding quarter, primarily driven by the benefit from an extra week in the fourth quarter, partially offset by the impact of Chinese New Year.
Sales of products for telecom applications increased by $6.2 million, or 8.6%, compared to the preceding quarter, primarily due to the benefit of an extra week in the fourth quarter partially offset by the impact of three month of the annual telecom price reduction that typically takes effect on January 1 and the impact of Chinese New Year.
GAAP gross margin increased to 27.9% from 25.5% in the preceding quarter, primarily due to a $5.7 million non-cash charge for the impairment of long-lived assets during the preceding quarter, not present in the fourth quarter.
Non-GAAP gross margin improved to 30.3% compared to 30% in the preceding quarter, primarily due to the improvement in yields for a new optical engine product for supercomputing applications that the company started to ramp in the third quarter of fiscal 2015 that had negatively impacted gross margin during that third quarter, partially offset by the impact of the full three months of the annual telecom price reduction that typically takes effect on January.
GAAP operating expenses increased $4.4 million to $78.9 million from $74.6 million in the preceding quarter.
Non-GAAP operating expenses increased $3.1 million to $68.2 million from $65.1 million in the preceding quarter, primarily due to the extra week of salaries in Q4 relative to Q3, higher R&D project materials associated with the qualification of our new products, and higher S&M expenses due to the higher revenue level.
GAAP operating income increased $6.9 million, to $10.3 million or 3.2% of revenues, compared to $3.4 million or 1.1% of revenues in the preceding quarter.
Non-GAAP operating income increased $1.9 million to $28.8 million, or 9.0% of revenues, compared to $26.9 million, or 8.8% of revenues, in the preceding quarter.
Cash, cash equivalents and short term investments increased $1.3 million to $490.2 million at the end of the fourth quarter, compared to $488.9 million at the end of the preceding quarter. ■