Finisar Guides Lower

Finisar (FNSR Quote) says fiscal fourth quarter sales will be below Wall Street's target.

The optical networking parts maker says revenue fell 5% from year-ago levels to $97.3 million for the quarter ended on April 30. The company declined to provide any earnings details for the quarter due to a stock option accounting probe.

For the full fiscal year, sales were $419.2 million, a 15% increase over $364 million in the same quarter a year ago.

Analysts had been looking for fiscal fourth quarter sales of $99 million and full year revenue of $422 million, according to Reuters Research.

"Despite year-end problems with customer supply chain and excess inventory issues, I think we made tremendous progress on a number of fronts in the last fiscal year," CEO Jerry Rawls said in a press release.

The company also said that an initial stock option backdating review found discrepancies with some grant dates. The report blames the backdating on "a lack of thorough understanding of relevant accounting rules on the part of the individuals involved in the granting process."

Finisar shares soared a penny to $3.67 in postclose trading Tuesday.