NOK) is making deals. Also making things interesting is Cisco's ( CSCO) impressive beat-and-raise performance after which the network giant hinted at broad recovery in carrier spending. With these factors in mind, it would seem appropriate to raise expectations for Finisar ( FNSR), a company I've always wanted to like but just couldn't. Although Finisar has a decent lead in the optical components space, management has not been able to convert this advantage into significant free cash flow. Now seems like the time. JDSU). What's more, given the 150 basis-point sequential improvement in gross margin along with the 15% sequential rise in net income, management has figured out ways to leverage the company's strengths into profits. As the carrier spending environment continues to recover, it will be interesting to see if this trend continues. Given Finisar's upgrade cycle, which should continue to boost sales, I wouldn't bet against the company.