Finisar Shares Down After 1st-quarter Report

NEW YORK (AP) — Shares of Finisar Corp., which makes components for optical networking equipment, fell Friday as an analyst said investors might be confused about its latest quarterly report.

The Sunnyvale, Calif., company's stock fell 7.9 cents, or 7.7 percent, to 94.1 cents in midday trading.

Late Thursday, Finisar posted net income of $26 million, or 2 cents per share, for the fiscal first quarter, which ended Aug. 2. That compared with $2.8 million, or a penny per share, during the three months that ended Aug. 3, 2008.

Excluding one-time items, Finisar broke even on a per-share basis, meeting the average estimate of analysts surveyed by Thomson Reuters.

Revenue rose 11 percent to $128.7 million from $115.8 million.

Finisar also announced Thursday that its board of directors approved a 1-for-8 reverse split of its common stock, effective at 4:30 p.m. Eastern time Friday, Sept. 25.

Morgan Keegan analyst Paul Bonenfant said the pressure on the stock price might be caused by investor confusion about the reporting of discontinued operations and the reverse stock split.