Finisar Corp. (FNSR) swung to a fiscal first-quarter profit as the telecommunication-equipment provider reported a double-digit jump in revenue and sharply higher gross margins.
Shares rose 1.8% to $23.24 in after-hours trading, as results exceeded the company's expectations and Finisar also issued a rosy outlook for the current quarter.
Looking ahead, the company sees current-quarter per-share earnings between 37 cents to 41 cents on revenue of $277 million to $292 million. Analysts surveyed by Thomson Reuters most recently expected 31 cents and $273 million, respectively.
Finisar, which makes fiber-optic equipment, had been suffering from weak demand from some telecom customers, putting pressure on its bottom line. But revenue in the latest quarter was sharply higher than a year ago, benefiting from increased sales of 10G, 40G and 100G Ethernet transceivers for datacom applications.
For the quarter ended July 28, Finisar reported a profit of $26 million, or 26 cents a share, compared with a prior-year loss of $6.2 million, or seven cents a share. Excluding stock-based compensation, inventory-related impacts and other items, adjusted earnings grew to 31 cents from 12 cents a share. Revenue rose 21% to $266.1 million.
The company in June projected a profit between 22 cents to 26 cents on revenue of $245 million to $260 million. Wall Street's latest targets were above Finisar's guidance.