EPS100Momentum's  Instablog

By Ed Silverstein

Finisar Corporation said this week that it had record revenue and net income in its second quarter, prompting a strong experience for the company’s stock on Thursday.

MarketWatch reported that gains from Finisar actually helped stock of other companies, which are also involved in optical networking.
 

Finisar /quotes/comstock/15*!fnsr/quotes/nls/fnsrshares increased about 17.5 percent after the company reported a profit of $33.8 million in the second quarter, said MarketWatch.

"In our just completed second quarter, we reached our previously announced target for non-GAAP operating margin of 17.0 percent, upwardly revised just last quarter, substantially earlier than we had predicted,” said Jerry Rawls, Finisar's executive chairman, in a company statement.

“Achieving this level of operating margin was driven by our strong revenue growth combined with minimal increases in operating expenses," Rawls explained. "We achieved new company records for quarterly revenues, operating income and net income."

In addition, Eitan Gertel, Finisar's CEO, said that the market “continued to be very strong for Finisar, driven by increased demand for a broad range of LAN/SAN and metro/telecom products.”

"The company continued to gain market share, including in the WSS/ROADM (News - Alert) line card segment, where revenues grew 27.3 percent over the previous quarter,” he added.

Gertel expects revenues for WSS/ROADM line cards to increase an additional 20 to 30 percent in the third quarter.

The company expects revenues for the third quarter, ending January 30, 2011, to fall in the range of $247 to $262 million. Operating margin is expected to be around 17.0, on a non-GAAP basis. Non-GAAP, earnings per diluted share is expected to be between $0.45 and $0.47.

TMCnet reported that some of Finisar’s customers are: Cisco Systems (News - Alert), Hewlett-Packard and IBM. Among its optical communication components and subsystems are products which allow for “high-speed data communications over local area networks,” according to TMCnet.

A major point in company history was in 2008, when Finisar merged with Optium Corporation.