Finisar Missed Lowered Target

Optical system shop remains hopeful that demand isn't to blame.
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Finisar (FNSR) - Get Report missed lowered financial targets but still sees healthy demand.

The Sunnyvale, Calif., optical networking systems maker posted adjusted earnings of $2.5 million or a penny a share for the quarter ended Oct. 28. Those numbers compare with pro forma profit of of $3.7 million, or a penny a share, in the prior quarter and adjusted net income $10 million or 3 cents a share in the year-ago period.

Sales for the fiscal second quarter were $100.7 million. That is down about 5% sequentially from the previous quarter and also down 9% over revenue level a year ago.

Analysts expected an adjusted profit of 3 cents on sales of $108 million, according to Yahoo! Finance.

"Our revenue miss last quarter was due to a combination of product and customer specific issues that occurred at a small number of large customers," CEO Jerry Rawls said in a press release. "The shortfall was not caused by lack of demand," Rawls continued.

The company says costs from its stock option backdating review and recent acquisitions have used $23.7 million in cash. At the end of July, Finisar had about $102 million in cash and short-term investments.

Finisar shares rose 4 cents in after-hours trading Wednesday.