NEW YORK (
) -- Shares of
rose on heavy volume in Thursday's afterhours action after the Sunnyvale, Calif.-based optical communications equipment maker gave a bullish financial forecast.
After the closing bell, the company said it now expects revenue of $240 million to $241 million for its fiscal second quarter ended Oct. 31, well above both its previously projected range of $215 million to $230 million, and Wall Street's current consensus estimate of $223.7 million. It also offered up a positive preliminary view for the current third quarter, projecting revenue ranging from $247 million to $262 million, also ahead of analyst expectations of $231.5 million.
Citing the higher revenue and a favorable product mix, Finisar expects its margins to also come in better than expected, and forecast non-GAAP
generally accepted accounting principles earnings of 41 to 43 cents a share for the October period vs. the average estimate of analysts polled by
for a profit of 34 cents a share.
Finisar shares were last quoted at $20.33, up 13.4%, on volume of nearly 350,000, according to
.The stock closed the regular session at $17.93, down about 6% as part of the collateral damage from
mediocre outlook, but it was still up about 112% year-to-date at that level. The 52-week high for the shares is $21.44, which was reached on Oct. 15.
A big mover to the downside in late trades was
, which was quoted at $4.62, off 20.6%, on volume of almost 90,000 shares.
The catalyst for the sell-off was commentary accompanying the company's fiscal first-quarter report saying the weak demand leading to a 11% year-over-year decline in sales for the three months ended Oct. 1 was continuing in the second quarter.
Company believes that reduced domestic government funding, and particularly more constrained state and local government funding of school budgets, is adversely affecting its product sales in the United States," DynaVox said in a press release. "In addition, DynaVox believes that constraints on government spending in its key international markets, including Canada and the U.K., have had a similar effect on product sales in those regions."
Based in Pittsburgh, DynaVox makes speech-generating devices and related software. When the company initially warned about first-quarter demand in late September, it withdrew a guidance offered in August where it forecast sales growth of 14-17% for fiscal 2011 with adjusted earnings projected between 56 and 62 cents a share.
In Thursday's press release, it updated investors on its expectations for the year, saying it now sees a sales decline of 10-15% and adjusted earnings of 21 to 27 cents a share.
was a winner in afterhours action, rising almost 4% to $13.11 on volume of 1.7 million. The Santa Clara, Calif.-based maker of graphics chips edged analyst views for its fiscal third-quarter profit, although revenue came in just short, but also told Wall Street it expects to see sequential growth of 3-5% in its fiscal fourth quarter ending in December.
Based on its third-quarter total of $843.9 million, that growth outlook implies a revenue range of $869 million to $886 million for the fourth quarter, ahead of the current average estimate of analysts polled by
for revenue of $866.1 million.
"We have turned the corner," pronounced Jen-Hsun Huang, the company's president and CEO, in a statement. "We have restored our speed of execution and are regaining share in desktops."
Nvidia shares finished the regular session at $12.61, down 32% so far in 2010; although at that level the stock had already seen a 46% bounce off its August 12 52-week low of $8.65.
Written by Michael Baron in New York.
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