Finisar Corporation announced financial results for its fourth quarter and full fiscal year 2016, ended May 1, 2016.
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Revenues were $318.8 million, an increase of $9.6 million, or 3.1%, from $309.2 million in the preceding quarter.
Sales of products for datacom applications increased by $23.6 million, or 10.8%, compared to the preceding quarter, primarily driven by growth in demand for 40G and 100G transceivers including CFP, CFP2, CFP4, QSFP, and QSFP28 form factors.
Sales of products for telecom applications decreased by $14.1 million, or 15.6%, compared to the preceding quarter, primarily as the result of the full three months of the telecom price negotiations and an unexpected decline in demand for legacy products including 10G fixed wavelength and tunable transceivers and amplifiers.
In addition, factors expected to partially offset the negative impacts on telecom revenue above during the quarter were lower in magnitude than expected due to delays in adding manufacturing capacity for wavelength selective switches and delays in the qualification of new ROADM linecard designs.
GAAP gross margin was 28.4% compared to 28.4% in the preceding quarter.
Non-GAAP gross margin was 30.6% compared to 30.3% in the prior quarter, as favorable product mix was partially offset by the impact of the full three months of annual telecom price negotiations, which typically take effect on January 1.
GAAP operating expenses were $76.3 million compared to $77.3 million in the prior quarter.
Non-GAAP operating expenses decreased to $66.2 million compared to $67.3 million in the prior quarter primarily due to lower G&A costs including lower legal expenses.
GAAP earnings per fully diluted share was $0.12 compared to $0.11 in the preceding quarter.
Non-GAAP earnings per fully diluted share was $0.29 compared to $0.25 in the preceding quarter.
Cash, cash equivalents and short term investments increased $31.4 million to $562.5 million at the end of the fourth quarter, compared to $531.1 million at the end of the preceding quarter. ■