Eitan Gertel

Obviously the issues in Europe are slowing down the recovery. Our customers in Europe are not only European customers – they are worldwide companies who reside in Europe and export. So in some cases we see improvement from all OEMs in Europe but I am not sure if that output is going to Europe itself but definitely Europe is an overhead.


So we want to ask about geography. So I think the tough part with Finisar where your ship isn’t necessarily where you product get installed, so we’ll skip past that. But let’s talk about cash on the balance sheet. I think Finisar is really differentiated in the Optical industry in that you have a good balance sheet, you have nice healthy cash position, you actually generate some nice cash. So what are – can you rank order for us from your perspective, priorities of cash in terms of M&A, dividends, share buybacks or just status quo. Keep on generating cash and keep on putting it on the balance sheet.

Eitan Gertel

So, obviously we have a very healthy balance sheet. We just acquired a company called RED C, and even post acquired the company for cash. We actually have more than $220 million as ending last quarter on the balance sheet. We have not had a decision made to do dividend or share buybacks. We are a company that is built on growth; we always add in technology, we are investing a lot of R&D. Right now we are extending our production facilities, we are fully booked in China, we have to build another facility which we announced last quarter and that’s our Wu Shi facility. So the use of the cash for us is either to do acquisitions or basically to finance the company going forward.


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