Finisar to Restate

Revenue is soft for the second quarter.
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Finisar (FNSR) - Get Report sank 6% late Thursday after it posted soft second-quarter revenue and set plans to restate past financials.

The Sunnyvale, Calif., networking gear company said it expects revenue for the quarter ended Oct. 29 to rise 25% from a year ago to $108.2 million. Analysts were looking for $110 million.

Finisar said it will restate results going back to its November 1999 initial public offering to fix its stock-option accounting. The company said a probe is underway but has found that "it is likely that the measurement dates for certain stock-option grants differed from the recorded grant dates for such awards and that the company will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to some past stock option grants."

Finisar said it hasn't determined the scope of the restatement and won't be able to file quarterly reports until it completes that work.

Shares fell 22 cents to $3.61.