Finisar Announces Third Fiscal Quarter Financial Results

Finisar Announces Third Fiscal Quarter Financial Results 
SUNNYVALE, CA -- (Marketwire) -- 03/07/13 --  Finisar Corporation
(NASDAQ: FNSR), a global technology leader for subsystems and
components for fiber optic communications, today announced financial
results for its third fiscal quarter ended January 27, 2013. 
COMMENTARY  
"I am pleased to report fiscal third quarter revenues of $238.4
million, which is $6.3 million, or 2.7%, greater than the prior
quarter. Our growth in revenues came primarily from sales of 10G and
100G transceivers and transponders for datacom applications," said
Jerry Rawls, Finisar's executive Chairman of the Board.  
"During the quarter, we continued to invest significantly in
technology and product development and made substantial progress on a
number of new products for our datacom and telecom products lines. We
are planning several compelling product announcements at the OFC show
during the week of March 18th in Anaheim, California," said Eitan
Gertel, Finisar's Chief Executive Officer.  


 
                                                                            
         FINANCIAL HIGHLIGHTS -THIRD QUARTER ENDED January 27, 2013         
                                                                            
Summary GAAP Results                                Third         Second    
                                                   Quarter        Quarter   
                                                    Ended          Ended    
                                                 January 27,    October 28, 
                                                    2013           2012     
                                                ------------   ------------ 
                                                 (in thousands, except per  
                                                       share amounts)       
                                                                            
Revenues                                        $    238,351   $    232,041 
Gross margin                                            28.5%          27.5%
Operating expenses                              $     68,841   $     63,820 
Operating income (loss)                         $       (797)  $         54 
Operating margin           
                             (0.3)%          0.0%
Income (loss)                                   $     (3,407)  $        271 
Income (loss) per share-basic                   $      (0.04)  $       0.00 
Income (loss) per share-diluted                 $      (0.04)  $       0.00 
                                                                            
Basic shares                                          93,097         92,780 
Diluted shares                                        93,097         94,735 
                                                                            
                                                                            
Summary Non-GAAP Results (a)                        Third         Second    
                                                   Quarter        Quarter   
                                                    Ended          Ended    
                                                 January 27,    October 28, 
                                                    2013           2012     
                                                ------------   ------------ 
                                                 (in thousands, except per  
                                                       share amounts)       
                                                                            
Revenues                                        $    238,351   $    232,041 
Gross margin                                            30.7%          30.5%
Operating expenses                              $     55,816   $     54,846 
Operating income                                $     17,377   $     15,838 
Operating margin                                         7.3%           6.8%
Income                                          $     16,390   $     14,205 
Income per share-basic                          $       0.18   $       0.15 
Income per share-diluted                        $       0.17   $       0.15 
                                                                            
Basic shares                                          93,097         92,780 
Diluted shares                                        99,094         98,483 
                                                                            
                                                                            
(a)  In evaluating the operating performance of Finisar's business, Finisar 
      management utilizes financial measures that exclude certain charges   
      and credits required by U.S. generally accepted accounting principles,
      or GAAP, that are considered by management to be outside Finisar's    
      core operating results. A reconciliation of Finisar's non-GAAP        
      financial measures to the most directly comparable GAAP measures, as  
      well as additional related information, can be found under the heading
      "Finisar Non-GAAP Financial Measures" below.                          

 
Operating Statement Highlights for the third quarter of fiscal 2013:  


 
--  Revenues increased to $238.4 million, an increase of $6.3 million, or
    2.7%, from $232.0 million in the preceding quarter, primarily driven
    by growth in revenues from 10G and 100G transceivers and transponders
    for datacom applications.
    
    
--  Compared to the preceding quarter, the sale of products for datacom
    applications increased by $7.8 million, or 5.6%, and the sale of
    products for telecom applications decreased by $1.5 million, or
    (1.6)%, as the result of the impact of approximately one month of the
    annual telecom price reductions that typically go into effect on
    approximately January 1st, partially offset in the increase in unit
    sales including tunable XFP transceivers.
    
    
--  Gross margin increased to 28.5% on a GAAP basis and 30.7% on a
    non-GAAP basis, from 27.5% and 30.5%, respectively, in the preceding
    quarter, primarily as a result of higher revenue levels, partially
    offset by the impact of one month of the annual telecom price
    reductions that typically go into effect on approximately January
    1st.
    
    
--  GAAP operating loss increased $0.8 million to $0.8 million, or (0.3) %
    of revenues, compared to an operating gain of $0.05 million, or 0.0%
    of revenues, in the preceding quarter.
    
    
--  Non-GAAP operating income increased $1.5 million to $17.4 million, or
    7.3% of revenues, compared to $15.8 million, or 6.8% of revenues, in
    the preceding quarter as the Company was able to hold non-GAAP
    operating expenses relatively flat while revenues grew.
    
    
--  Non-GAAP EBITDA increased $2.4 million to $31.1 million, or 13.1% of
    revenues, compared to $28.7 million, or 12.4% of revenues, in the
    preceding quarter.

  
Balance Sheet Highlights for the third quarter of fiscal 2013:  


 
--  Cash and cash equivalents totaled $265.5 million at the end of the
    third quarter, compared to $262.4 million at the end of the preceding
    quarter.
    
    
--  At the end of the third quarter, Finisar had ap
proximately $40.0
    million in principal amount of convertible notes outstanding with a
    conversion price of $10.675 per share.

  
OUTLOOK  
The Company currently expects revenues for the fourth quarter of
fiscal 2013 to be in the range of $235 to $250 million; GAAP
operating margin to be approximately 2%; non-GAAP operating margin to
be approximately 7%; and non-GAAP earnings per diluted share to be in
the range of approximately $0.15 to $0.19. 
CONFERENCE CALL  
Finisar will discuss its financial results for the third quarter and
current business outlook during its regular quarterly conference call
scheduled for Thursday, March 7, 2013, at 2:00 pm PST (5:00 pm EST).
To listen to the call you may connect through the Finisar investor
relations page at http://investor.finisar.com/ or dial 1-888-417-8533
(domestic) or (719) 457-2697 (international) and enter conference ID
4484284. 
An audio replay will be available for two weeks following the call by
dialing 1-888-203-1112 (domestic) or (719) 457-0820 and then
following the prompts: enter conference ID 4484284 and provide your
name, affiliation, and contact number. A replay of the webcast will
be available shortly after the conclusion of the call on the
Company's website until the next regularly scheduled earnings
conference call. 
SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995 
The statements contained in this press release that are not purely
historical are forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended. All
forward-looking statements included in this press release are based
upon information available to Finisar as of the date hereof, and
Finisar assumes no obligation to update any such forward-looking
statements. Forward-looking statements involve risks and
uncertainties which could cause actual results to differ materially
from those projected. Examples of such risks include those associated
with: the uncertainty of customer demand for Finisar's products; the
rapidly evolving markets for Finisar's products and uncertainty
regarding the development of these markets; Finisar's historical
dependence on sales to a limited number of customers and fluctuations
in the mix of products and customers in any period; ongoing new
product development and introduction of new and enhanced products;
challenges related to the integration of the recently completed RED-C
acquisition; the challenges of rapid growth followed by periods of
contraction; and intensive competition. Further information regarding
these and other risks relating to Finisar's business is set forth in
Finisar's annual report on Form 10-K (filed June 29, 2012) and
quarterly SEC filings. 
ABOUT FINISAR 
Finisar Corporation (NASDAQ: FNSR) is a global technology leader for
fiber optic subsystems and components that enable high-speed voice,
video and data communications for telecommunications, networking,
storage, wireless, and cable TV applications. For more than 20 years,
Finisar has provided critical optics technologies to system
manufacturers to meet the increasing demands for network bandwidth
and storage. Finisar is headquartered in Sunnyvale, California, USA
with R&D, manufacturing sites, and sales offices worldwide. For
additional information, visit www.finisar.com.  
FINISAR FINANCIAL STATEMENTS 
The following financial tables are presented in accordance with GAAP. 


 
                                                                            
                            Finisar Corporation                             
                        Consolidated Balance Sheets                         
                               (in thousands)                               
                                                                            
                      January 27,   October 28,    July 29,      April 30,  
                         2013          2012          2012          2012     
                     ------------  ------------  ------------  ------------ 
                      (Unaudited)   (Unaudited)   (Unaudited)               
                     ------------  ------------  ------------  ------------ 
       ASSETS                                                               
Current assets:                                                             
  Cash and cash                                                             
   equivalents       $    265,454  $    262,432  $    220,409  $    234,544 
  Accounts                                                                  
   receivable, net        155,502       155,949       179,441       167,760 
  Accounts                                                                  
   receivable, other       10,843        15,240        14,972        21,004 
  Inventories             202,123       203,554       208,168       218,432 
  Prepaid expenses         22,875        25,183        24,430        25,482 
                     ------------  ------------  ------------  ------------ 
    Total current                                                           
     assets               656,797       662,358       647,420       667,222 
Property, equipment                                                         
 and improvements,                                                          
 net                      192,381       173,284       165,837       163,817 
Purchased intangible                                                        
 assets, net               45,823        53,300        43,049        45,177 
Goodwill                   91,551        91,098        97,994        81,431 
Minority investments          884           884           884           884 
Other assets                7,321         7,263         7,393        10,896 
                     ------------  ------------  ------------  ------------ 
    Total assets     $    994,757  $    988,187  $    962,577  $    969,427 
                     ============  ============  ============  ============ 
                                                                            
   LIABILITIES AND                                                          
    STOCKHOLDERS'                                                           
        EQUITY                                                              
Current liabilities:                                                        
  Accounts payable   $     67,264  $     72,844  $     71,295  $     72,339 
  Accrued                                                                   
   compensation            28,436        27,901        22,210        27,090 
  Other accrued                                                             
   liabilities             31,901        22,774        21,456        20,871 
  Deferred revenue          9,760         7,868         9,775         8,970 
  Current portion of                                                        
   long-term debt               -             -             -         3,150 
                     ------------  ------------  ------------  ------------ 
    Total current                                                           
     liabilities          137,361       131,387       124,736       132,420 
Long-term                                                                   
 liabilities:       
                                                        
  Convertible notes,                                                        
   net of current                                                           
   portion                 40,015        40,015        40,015        40,015 
  Other non-current                                                         
   liabilities             14,078        21,171        16,274        15,175 
  Deferred tax                                                              
   liabilities              2,512         2,459         2,433         1,972 
                     ------------  ------------  ------------  ------------ 
    Total                                                                   
     liabilities          193,966       195,032       183,458       189,582 
Stockholders'                                                               
 equity:                                                                    
  Common stock                 93            93            93            91 
  Additional paid-in                                                        
   capital              2,341,448     2,330,683     2,321,064     2,309,219 
  Accumulated other                                                         
   comprehensive                                                            
   income                  26,904        26,346        22,356        28,720 
  Accumulated                                                               
   deficit             (1,575,839)   (1,572,432)   (1,572,703)   (1,566,506)
                     ------------  ------------  ------------  ------------ 
    Finisar                                                                 
     Corporation                                                            
     stockholders'                                                          
     equity               792,606       784,690       770,810       771,524 
  Non-controlling                                                           
   interest                 8,185         8,465         8,309         8,321 
                     ------------  ------------  ------------  ------------ 
    Total                                                                   
     stockholders'                                                          
     equity               800,791       793,155       779,119       779,845 
                     ------------  ------------  ------------  ------------ 
Total liabilities                                                           
 and stockholders'                                                          
 equity              $    994,757  $    988,187  $    962,577  $    969,427 
                     ============  ============  ============  ============ 
                                                                            
Note - Balance sheet amounts as of April 30, 2012 are derived from the      
 audited consolidated financial statements as of the date.                  
                                                                            
                                                                            
                                                                            
                            Finisar Corporation                             
                   Consolidated Statements of Operations                    
              (Unaudited, in thousands, except per share data)              
                                                                            
                                                                    Three   
                                                                    Months  
                       Three Months Ended     Nine Months Ended     Ended   
                      --------------------  --------------------  --------- 
                       January    January    January    January    October  
                       27, 2013   29, 2012   27, 2013   29, 2012   28, 2012 
                      ---------  ---------  ---------  ---------  --------- 
Revenues              $ 238,351  $ 242,954  $ 690,918  $ 712,669  $ 232,041 
Cost of revenues        168,377    170,215    496,001    500,009    166,167 
Amortization of                                                             
 acquired developed                                                         
 technology               1,930      1,637      5,202      4,796      2,000 
                      ---------  ---------  ---------  ---------  --------- 
Gross profit             68,044     71,102    189,715    207,864     63,874 
Gross margin               28.5%      29.3%      27.5%      29.2%      27.5%
Operating expenses:                                                         
  Research and                                                              
   development           39,725     36,470    117,514    108,573     39,620 
  Sales and marketing    10,398     10,599     31,291     30,310     10,219 
  General and                                                               
   administrative        12,797     11,766     39,058     39,491     12,919 
  Amortization of                                                           
   purchased                                                                
   intangibles            1,035        959      2,906      2,597      1,062 
  Impairment of long-                                                       
   lived assets           4,886          -      4,886          -          - 
  Restructuring                                                             
   recoveries                 -          -          -       (322)         - 
                      ---------  ---------  ---------  ---------  --------- 
    Total operating                                                         
     expenses            68,841     59,794    195,655    180,649     63,820 
                      ---------  ---------  ---------  ---------  --------- 
Income (loss) from                                                          
 operations                (797)    11,308     (5,940)    27,215         54 
Interest income             186        151        544        411        162 
Interest expense           (648)      (862)    (2,045)    (2,911)      (750)
Loss on debt                                                                
 extinguishment               -          -          -       (419)         - 
Other income                                                                
 (expenses), net           (275)      (355)      (295)     4,168       (101)
                      ---------  ---------  ---------  ---------  --------- 
Income (loss) before                                                        
 income taxes and                                                           
 non-controlling                                                            
 interest                (1,534)    10,242     (7,736)    28,464       (635)
Provision (benefits)                                                        
 for income taxes         2,153        875      1,733      2,792     (1,062)
                      ---------  ---------  ---------  ---------  --------- 
Income (loss) before                                                        
 non-controlling                                                            
 interest                (3,687)     9,367     (9,469)    25,672        427 
Adjust for net                                                              
 (income) loss                                                              
 attributable to non-                                                       
 controlling interest       280       (458)       136       (694)      (156)
                      ---------  ---------  ---------  ---------  --------- 
Net income (loss)                                                           
 attributable to                                                            
 Finisar Corporation  $  (3,407) $   8,909  $  (9,333) $  24,978  $     271 
                      =========  =========  =========  =========  ========= 
                                                                            
Net income (loss) per                                                       
 share attributable                                                         
 to Finisar                                                                 
 Corporation common                                                         
 stockholders:                                                              
                                                                            
  Basic               $   (0.04) $    0.10  $   (0.10) $    0.28  $    0.00 
  Diluted             $   (0.04) $    0.09  $   (0.10) $    0.27  $    0.00 
                                                                            
Shares used in                                                              
 computing net income                                                       
 (loss) per share -                                                         
 basic                   93,097     91,001     92,624     90,644     92,780 
Shares used in                                                              
 computing net income                                                       
 (loss) per share -                                                         
 diluted                 93,097     94,032     92,624     93,904     94,735 

 
FINISAR NON-GAAP FINANCIAL MEASURES 
In addition to reporting financial results in accordance with U.S.
generally accepted accounting principles, or GAAP, Finisar provides
supplemental information regarding the Company's operating
performance on a non-GAAP basis that excludes certain gains, losses
and charges of a non-cash nature or which occur relatively
infrequently and which management considers to be outside our core
operating results. Some of these non-GAAP measures also exclude the
ongoing impact of historical business decisions made in different
business and economic environments. Management believes that tracking
non-GAAP gross profit, non-GAAP income from operations, non-GAAP net
income and non-GAAP net income per share provides management and the
investment community with valuable insight into our current
operations, our ability to generate cash and the underlying business
trends which are affecting our performance. These non-GAAP measures
are used by both management and our Board of Directors, along with
the comparable GAAP information, in evaluating our current
performance and planning our future business activities. In
particular, management finds it useful to exclude non-cash charges in
order to better correlate our operating activities with our ability
to generate cash from operations and to exclude certain cash charges
as a means of more accurately predicting our liquidity requirements.
We believe that these non-GAAP measures, when used in conjunction
with our GAAP financial information, also allow investors to better
evaluate our financial performance in comparison to other periods and
to other companies in our industry. 
In calculating non-GAAP gross profit in this release, we have
excluded the following items from cost of revenues in applicable
periods: 


 
--  Changes in excess and obsolete inventory reserve (predominantly
    non-cash charges or non-cash benefits);
--  Amortization of acquired technology (non-cash charges related to
    technology obtained in acquisitions);
--  Stock-based compensation expense (non-cash charges);
--  Acquisition method accounting adjustment for sale of acquired
    inventory (non-cash charges);
--  Reduction in force costs (non-recurring cash charges); and
--  Acquisition related retention payments (non-recurring charges).

  
In calculating non-GAAP op
erating income in this release, we have
excluded the same items to the extent they are classified as
operating expenses, and have also excluded the following items in
applicable periods: 


 
--  Gain or loss on litigation settlements and resolutions and related
    costs (non-recurring cash charges or benefits);
--  Shareholder class action and derivative litigation costs
    (non-recurring cash expenses associated with the derivative litigation
    related to our historical stock option granting practices and related
    to the class action and derivative litigation related to our March 8,
    2011 earnings announcement);
--  Impairment of long-lived assets (non-cash charges)
--  Acquisition related costs (non-recurring cash charges);
--  Amortization of purchased intangibles (non-cash charges); and
--  Restructuring costs and recoveries (non-recurring charges and
    benefits).

  
In calculating non-GAAP income and non-GAAP income per share in this
release, we have also excluded the following items in applicable
periods: 


 
--  Imputed interest related to restructuring (non-cash charges);
--  Gains and losses on sales of assets (non-recurring or non-cash losses
    and cash gains related to the periodic disposal of assets no longer
    required for current activities);
--  Loss related to minority and equity method investments (non-cash
    charges);
--  Dollar denominated foreign exchange transaction losses (gains)
    (non-cash charges or benefits);
--  Other miscellaneous expenses (income) (non-recurring charges or
    benefits);
--  Debt extinguishment loss (non-recurring charges);
--  Fair value re-measurement of equity investment (non-cash gain from
    re-measurement of value of prior investment in an investee); and
--  Differences between cash payable for income taxes and the provision
    for income taxes in accordance with GAAP, less discrete items.

  
In calculating non-GAAP income per share in this release, we have
included the shares issuable upon conversion of our outstanding
convertible notes and excluded the interest expenses associated with
such notes in such periods where such treatment is dilutive to
non-GAAP income (loss) per share. 
A reconciliation of this non-GAAP financial information to the
corresponding GAAP information is set forth below: 


 
                                                                            
                            Finisar Corporation                             
      Reconciliation of Results of Operations under GAAP and non-GAAP       
              (Unaudited, in thousands, except per share data)              
                                                                            
                                                                    Three   
                                                                    Months  
                       Three Months Ended     Nine Months Ended     Ended   
                      --------------------  --------------------  --------- 
                       January    January    January    January    October  
                       27, 2013   29, 2012   27, 2013   29, 2012   28, 2012 
                      ---------  ---------  ---------  ---------  --------- 
GAAP to non-GAAP                                                            
 reconciliation of                                                          
 gross profit:                                                              
Gross profit - GAAP   $  68,044  $  71,102  $ 189,715  $ 207,864  $  63,874 
Gross margin - GAAP        28.5%      29.3%      27.5%      29.2%      27.5%
Adjustments:                                                                
Cost of revenues                                                            
  Change in excess                                                          
   and obsolete                                                             
   inventory reserve        989      1,732      7,858      5,343      2,003 
  A
mortization of                                                           
   acquired                                                                 
   technology             1,930      1,637      5,202      4,796      2,000 
  Stock compensation      2,140      1,596      5,502      5,142      1,876 
  Acquisition method                                                        
   accounting                                                               
   adjustment for                                                           
   sale of acquired                                                         
   inventory                  -        952      1,363      4,035        722 
  Reduction in force                                                        
   costs                     17        243        801        844        136 
  Acquisition related                                                       
   retention payment         73          -        146          -         73 
                      ---------  ---------  ---------  ---------  --------- 
    Total cost of                                                           
     revenue                                                                
     adjustments          5,149      6,160     20,872     20,160      6,810 
                      ---------  ---------  ---------  ---------  --------- 
Gross profit - non-                                                         
 GAAP                    73,193     77,262    210,587    228,024     70,684 
                      ---------  ---------  ---------  ---------  --------- 
Gross margin - non-                                                         
 GAAP                      30.7%      31.8%      30.5%      32.0%      30.5%
                                                                            
GAAP to non-GAAP                                                            
 reconciliation of                                                          
 operating income:                                                          
Operating income                                                            
 (loss) - GAAP             (797)    11,308     (5,940)    27,215         54 
Operating margin -                                                          
 GAAP                      -0.3%       4.7%      -0.9%       3.8%       0.0%
Adjustments:                                                                
Total cost of revenue                                                       
 adjustments              5,149      6,160     20,872     20,160      6,810 
Research and                                                                
 development                                                                
  Reduction in force                                                        
   costs                     11        693        188        766          - 
  Acquisition related                                                       
   retention payment        213          -        435          -        222 
  Stock compensation      2,601      2,200      8,940      6,835      3,353 
Sales and marketing                                                         
  Acquisition related                                                       
   retention payment         17          -         37          -         20 
  Stock compensation        885        747      2,964      2,378      1,002 
General and                                                                 
 administrative                                                             
  Reduction in force                                                        
   costs                     25         51         94      1,014         54 
  Acquisition related                                                       
   retention payment        223          -        476          -        253 
  Stock compensation      2,218      1,746      8,003      5,699      2,956 
  Acquisition related                                                       
   costs                    731        304      1,152      1,602         96 
  Litigation                                                                
   settlements and                                                          
   resolutions and                                                          
   related costs              -       (185)        13        (93)       (10)
  Shareholder class                                                         
   action and                                                               
   derivative                                                               
   litigation costs         180        (10)       189        625        (34)
Amortization of                                                             
 purchased                                                                  
 intangibles              1,035        959      2,906      2,597      1,062 
Impairment of long-                                                         
 lived assets             4,886          -      4,886          -          - 
Restructuring                                                               
 recoveries                   -          -          -       (322)         - 
                      ---------  ---------  ---------  ---------  --------- 
    Total cost of                                                           
     revenue and                                                            
     operating                                                              
     expense                                                                
     adjustments         18,174     12,665     51,155     41,261     15,784 
                      ---------  ---------  ---------  ---------  --------- 
Operating income -                                                          
 non-GAAP                17,377     23,973     45,215     68,476     15,838 
                      ---------  ---------  ---------  ---------  --------- 
Operating margin -                                                          
 non-GAAP                   7.3%       9.9%       6.5%       9.6%       6.8%
                                                                            
GAAP to non-GAAP                                                            
 reconciliation of                                                          
 income attributable                                                        
 to Finisar                                                                 
 Corporation:                                                               
Income (loss)                                                               
 attributable to                                                            
 Finisar Corporation                                                        
 - GAAP                  (3,407)     8,909     (9,333)    24,978        271 
Adjustments:                                                                
Total cost of revenue                                                       
 and operating                                                              
 expense adjustments     18,174     12,665     51,155     41,261     15,784 
Imputed interest                                                            
 related to                                                                 
 restructuring              148        206        374        672        164 
Other (income)                                                              
 expense, net                                                               
  Loss (gain) on sale                                                       
   of assets                 38       (229)      (151)        (7)      (170)
  Loss related to                                                           
   minority and                                                             
   equity method                                                            
   in
vestments                -          -          -        619          - 
  Other miscellaneous                                                       
   income                  (101)       351       (261)       601          - 
  Foreign exchange                                                          
   transaction loss                                                         
   (gain)                   431        362       (180)      (280)      (607)
  Debt extinguishment                                                       
   loss                       -          -        573        419        573 
  Fair value                                                                
   remeasurement of                                                         
   equity investment          -          -          -     (5,429)         - 
Provision for income                                                        
 taxes                                                                      
  Income tax                                                                
   provision                                                                
   adjustments            1,107       (386)      (711)       109     (1,810)
                      ---------  ---------  ---------  ---------  --------- 
Total adjustments        19,797     12,969     50,799     37,965     13,934 
                      ---------  ---------  ---------  ---------  --------- 
Net income                                                                  
 attributable to                                                            
 Finisar Corporation                                                        
 - non-GAAP              16,390     21,878     41,466     62,943     14,205 
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Non-GAAP income                                                             
 attributable to                                                            
 Finisar Corporation  $  16,390  $  21,878  $  41,466  $  62,943  $  14,205 
Add: interest expense                                                       
 for dilutive                                                               
 convertible notes          539        539      1,618      1,617        539 
                      ---------  ---------  ---------  ---------  --------- 
Adjusted non-GAAP                                                           
 income attributable                                                        
 to Finisar                                                                 
 Corporation          $  16,929  $  22,417  $  43,084  $  64,560  $  14,744 
                      =========  =========  =========  =========  ========= 
                                                                            
Non-GAAP income per                                                         
 share attributable                                                         
 to Finisar                                                                 
 Corporation common                                                         
 stockholders                                                               
  Basic               $    0.18  $    0.24  $    0.45  $    0.69  $    0.15 
  Diluted             $    0.17  $    0.23  $    0.44  $    0.66  $    0.15 
Shares used in                                                              
 computing non-GAAP                                                         
 income per share                                                           
 attributable to                                                            
 Finisar Corporation                                                        
 common stockholders                                                        
  Basic                  93,097     91,001     92,624     90,644     92,780 
  Diluted                99,094     97,781     98,891     97,652     98,483 
                                                                            
Non-GAAP EBITDA                                                             
Non-GAAP income                                                             
 attributable to                                                            
 Finisar Corporation  $  16,390  $  21,878  $  41,466  $  62,943  $  14,205 
Depreciation expense     13,306     11,388     39,123     32,978     13,106 
Amortization                 86        208        559        624        237 
Interest expense            314        505      1,127      1,828        424 
Income tax expense        1,046      1,261      2,444      2,683        748 
                      ---------  ---------  ---------  ---------  --------- 
Non-GAAP EBITDA       $  31,142  $  35,240  $  84,719  $ 101,056  $  28,720 
                      =========  =========  =========  =========  ========= 

  
Investor Contact:
Kurt Adzema
Chief Financial Officer
408-542-5050
Investor.relations@finisar.com 
Press contact:
Victoria McDonald
Sr. Manager, Corporate Communications
408-542-4261 
 
 
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