Fiber-optic communications component and subsystem maker Finisar, of Sunnyvale, CA, USA, has reported financial results for Q1 2014, which ended July 28, 2013, including "all-time record sales for a quarter",? according to executive Chairman of the Board Jerry Rawls.
Fiscal Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Revenue $220.5m $232m $238.4m $243.4m $266.1m
Quarter revenues increased to $266.1m, up $22.7m, or 9.3%, from $243.4m in the preceding quarter and up $45.5m (20.7%) on those of Q1 2013, primarily driven by strong sales of datacom products. Sales of products for datacom applications increased by $20.5m (12.5%) on the preceding quarter while sales of products for telecoms rose by $2.2m (2.7%) on Q4 2013.
Overall quarter revenues were approximately 12% greater than those of the preceding quarter, after adjustment to reflect the elimination of recently-divested businesses. Non-GAAP gross margin increased to 35.1% from 32.2% in Q4, 2013; non-GAAP operating income increased $12.4m to $32.4m, or 12.2% of revenues, compared to $20.0m, or 8.2% of revenues, in the preceding quarter.
Rawls commented, "I am pleased to report that our first quarter revenues of $266.1m exceeded the guidance of $245m to $260m that we provided in the first quarter. Furthermore they have grown for the fourth consecutive quarter. Growth in revenues in the first quarter came primarily from increased sales of 10G, 40G and 100G Ethernet transceivers for datacom applications. As a result of these higher than expected revenues, a favorable product mix and operating leverage, we also were able to achieve gross margin and earnings per diluted share that exceeded our original guidance range."
Eitan Gertel, Finisar's Chief Executive Officer, added, "During the latest quarter, we continued to invest significantly in technology and product development. Our new products for 100 gigabit parallel and serial applications for either single mode and multi mode fiber applications continue to have strong customer demand. We also expect our new platform of high density dual and single WSS will extend our leadership in the WSS market in both the component and ROADM linecard form."
Kurt Adzema, Finisar's CFO, gave an update on the company's performance, product mix and expenses: "Our non-GAAP gross margin was 35.1% up from 32.2% in the preceding quarter, primarily as a result of higher revenues, a favorable product mix and operating leverage. Non-GAAP operating expenses for the quarter were $60.9m, an increase of $2.6m over the prior quarter. This increase was primarily driven by higher compensations, expenses, including annual seller increases associated with the beginning of our new fiscal year.
"Our first quarter (2014) capital expenditures totaled $27.9m, below our guidance of $32m. This drop is the result of a slight delay in the timing of payments related to the new manufacturing facility we are building in Wuxi, China. Capital expenditures are expected to be approximately $32m in the second quarter of fiscal 2014, primarily driven by the remaining expenses for the new building. Cash and cash equivalents totaled $288.4m at the end of the first quarter compared to $289.1m in the preceding quarter."
Considering the next quarter's outlook, Finisar said it expects revenues for the second quarter of fiscal 2014 to be in the range of $277 to $292m; non-GAAP operating margin to be in the range of approximately 13.7% to 14.7% and non-GAAP earnings per diluted share to be in the range of approximately $0.37 to $0.41.
See related items:
Finisar's quarterly revenue rises 2%, as datacoms growth counteracts drop in telecoms
Finisar's quarterly revenue down year-on-year, but profits and revenue up sequentially due to datacoms
Finisar's quarterly revenue grows 5%
