UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
Form 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): June 13, 2019
Finisar Corpation
(Exact Name of Registrant as Specified in Charter)
Delaware | 000-27999 | 94-3038428 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
1389 Moffett Park Drive, Sunnyvale, CA 94089 |
(Address of Principal Executive Offices) (Zip Code) |
408-548-1000
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: | ||
Common stock, $.001 par value | FNSR | NASDAQ Stock Market (NASDAQ Global Select Market) |
Item 2.02. Results of Operations and Financial Condition.
On June 13, 2019, Finisar Corporation issued a press release announcing its financial results for the fourth quarter and full fiscal year, ended April 28, 2019. A copy of the press release is attached hereto as Exhibit 99.1. In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01. Other Events.
The information set forth under Item 2.02 of this Current Report on Form 8-K is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) ExhibitsExhibit Number Description 99.1 Press Release dated June 13, 2019
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Finisar Corpation | ||
Date: June 13, 2019 | By: | /s/ Kurt Adzema |
Kurt Adzema | ||
Chief Financial Officer | ||
EXHIBIT 99.1
Finisar Announces Fiscal 2019 Financial Results
SUNNYVALE, Calif., June 13, 2019 (GLOBE NEWSWIRE) -- Finisar Corporation (NASDAQ: FNSR), a global technology leader for subsystems and components for fiber optic communications, today announced financial results for its fourth quarter and full fiscal year, ended April 28, 2019. Finisar will not hold an earnings call, nor provide forward guidance for the first quarter of fiscal 2020 due to the previously announced proposed acquisition by II-VI Incorporated (NASDAQ: IIVI).
FINANCIAL HIGHLIGHTS – Fourth Quarter Ended April 28, 2019 | ||||||||
Summary GAAP Results | Fourth | Third | ||||||
Quarter | Quarter | |||||||
Ended | Ended | |||||||
April 28, 2019 | January 27, 2019 | |||||||
(in thousands, except per share amounts) | ||||||||
Revenues | $ | 310,085 | $ | 327,636 | ||||
Gross margin | 28.2 | % | 28.8 | % | ||||
Operating expenses | $ | 98,579 | $ | 93,890 | ||||
Operating income (loss) | $ | (11,278 | ) | $ | 533 | |||
Operating margin | (3.6 | )% | 0.2 | % | ||||
Net loss | $ | (14,151 | ) | $ | (15,301 | ) | ||
Loss per share-basic | $ | (0.12 | ) | $ | (0.13 | ) | ||
Loss per share-diluted | $ | (0.12 | ) | $ | (0.13 | ) | ||
Basic shares | 117,953 | 117,608 | ||||||
Diluted shares | 117,953 | 117,608 | ||||||
Summary Non-GAAP Results (a) | Fourth | Third | |||||||
Quarter | Quarter | ||||||||
Ended | Ended | ||||||||
April 28, 2019 | January 27, 2019 | ||||||||
(in thousands, except per share amounts) | |||||||||
Revenues | $ | 310,085 | $ | 327,636 | |||||
Non-GAAP Gross margin | 30.8 | % | 30.2 | % | |||||
Non-GAAP Operating expenses | $ | 64,642 | $ | 63,645 | |||||
Non-GAAP Operating income | $ | 30,895 | $ | 35,229 | |||||
Non-GAAP Operating margin | 10.0 | % | 10.8 | % | |||||
Non-GAAP Net income | $ | 32,960 | $ | 34,192 | |||||
Non-GAAP Income per share-basic | $ | 0.28 | $ | 0.29 | |||||
Non-GAAP Income per share-diluted | $ | 0.27 | $ | 0.29 | |||||
Basic shares | 117,953 | 117,608 | |||||||
Diluted shares | 120,795 | 119,570 |
_____________
(a) In evaluating the operating performance of Finisar’s business, Finisar management utilizes financial measures that exclude certain charges and credits required by U.S. generally accepted accounting principles, or GAAP, that are considered by management to be outside of Finisar’s core ongoing operating results. A reconciliation of Finisar’s non-GAAP financial measures to the most directly comparable GAAP measures, as well as additional related information, can be found under the heading “Finisar Non-GAAP Financial Measures” below.
Revenue Details for the Fourth Quarter of Fiscal 2019:
FINANCIAL HIGHLIGHTS – Fiscal Year Ended April 28, 2019 | ||||||||
Summary GAAP Results | ||||||||
Fiscal Year | Fiscal Year | |||||||
Ended | Ended | |||||||
April 28, 2019 | April 29, 2018 | |||||||
(in thousands, except per share amounts) | ||||||||
Revenues | $ | 1,280,480 | $ | 1,316,483 | ||||
Gross margin | 27.2 | % | 27.5 | % | ||||
Operating expenses | $ | 378,633 | $ | 355,652 | ||||
Operating income (loss) | $ | (30,541 | ) | $ | 6,513 | |||
Operating margin | (2.4 | )% | 0.5 | % | ||||
Net loss | $ | (53,216 | ) | $ | (48,287 | ) | ||
Loss per share-basic | $ | (0.45 | ) | $ | (0.42 | ) | ||
Loss per share-diluted | $ | (0.45 | ) | $ | (0.42 | ) | ||
Basic shares | 117,178 | 113,864 | ||||||
Diluted shares | 117,178 | 113,864 | ||||||
Summary Non-GAAP Results (b) | ||||||||
Fiscal Year | Fiscal Year | |||||||
Ended | Ended | |||||||
April 28, 2019 | April 29, 2018 | |||||||
(in thousands, except per share amounts) | ||||||||
Revenues | $ | 1,280,480 | $ | 1,316,483 | ||||
Non-GAAP Gross margin | 29.2 | % | 29.7 | % | ||||
Non-GAAP Operating expenses | $ | 260,157 | $ | 292,197 | ||||
Non-GAAP Operating income | $ | 113,591 | $ | 99,195 | ||||
Non-GAAP Operating margin | 8.9 | % | 7.5 | % | ||||
Non-GAAP Net income | $ | 119,049 | $ | 100,420 | ||||
Non-GAAP Income per share-basic | $ | 1.02 | $ | 0.88 | ||||
Non-GAAP Income per share-diluted | $ | 1.00 | $ | 0.86 | ||||
Basic shares | 117,178 | 113,864 | ||||||
Diluted shares | 119,389 | 116,274 |
_____________
(a) In evaluating the operating performance of Finisar’s business, Finisar management utilizes financial measures that exclude certain charges and credits required by U.S. generally accepted accounting principles, or GAAP, that are considered by management to be outside of Finisar’s core ongoing operating results. A reconciliation of Finisar’s non-GAAP financial measures to the most directly comparable GAAP measures, as well as additional related information, can be found under the heading “Finisar Non-GAAP Financial Measures” below.
Revenue Details for Fiscal 2019:
SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statement concerning Finisar’s expected financial performance. These statements are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on our current expectations, estimates, assumptions and projections about our business and industry, and the markets and customers we serve, and they are subject to numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Finisar assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from those projected. Examples of such risks include those associated with: the uncertainty of customer demand for Finisar’s products; the rapidly evolving markets for Finisar’s products and uncertainty regarding the development of these markets; Finisar’s historical dependence on sales to a limited number of customers and fluctuations in the mix of products and customers in any period; ongoing new product development and introduction of new and enhanced products; the challenges of rapid growth followed by periods of contraction; intensive competition; the risk that our pending merger with II-VI does not close, due to the failure of one or more conditions to closing; uncertainty as to the market value of the II-VI merger consideration to be paid in the merger; the risk that required governmental or stockholder approvals of the merger (including China antitrust approval) will not be obtained or that such approvals will be delayed beyond current expectations; the risk of litigation in respect of either Finisar or II-VI or the merger; disruption from the merger making it more difficult to maintain our customer, supplier, key personnel and other strategic relationships. Further information regarding these and other risks relating to Finisar’s business is set forth in Finisar’s annual report on Form 10-K (filed June 15, 2018) and quarterly SEC filings.
ABOUT FINISAR
Finisar Corporation (NASDAQ: FNSR) is a global technology leader in optical communications, providing components and subsystems to networking equipment manufacturers, data center operators, telecom service providers, consumer electronics and automotive companies. Founded in 1988, Finisar designs products that meet the increasing demands for network bandwidth, data storage and 3D sensing subsystems. The company is headquartered in Sunnyvale, California, USA with R&D, manufacturing sites, and sales offices worldwide. Visit our website at www.finisar.com.
FINISAR FINANCIAL STATEMENTS The following financial tables are presented in accordance with GAAP.
Finisar Corporation | |||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||
(Unaudited, in thousands, except per share data) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | Three Months Ended | |||||||||||||||||
Apr 28, 2019 | Apr 29, 2018 | Apr 28, 2019 | Apr 29, 2018 | Jan 27, 2019 | |||||||||||||||
Revenues | $ | 310,085 | $ | 310,069 | $ | 1,280,480 | $ | 1,316,483 | $ | 327,636 | |||||||||
Cost of revenues | 218,513 | 246,501 | 926,550 | 951,510 | 232,655 | ||||||||||||||
Amortization of acquired developed technology | 471 | 604 | 1,959 | 2,437 | 496 | ||||||||||||||
Impairment of long-lived assets | 3,800 | 371 | 3,879 | 371 | 62 | ||||||||||||||
Gross profit | 87,301 | 62,593 | 348,092 | 362,165 | 94,423 | ||||||||||||||
Gross margin | 28.2 | % | 20.2 | % | 27.2 | % | 27.5 | % | 28.8 | % | |||||||||
Operating expenses: | |||||||||||||||||||
Research and development | 51,133 | 60,520 | 217,878 | 239,008 | 51,228 | ||||||||||||||
Sales and marketing | 12,000 | 12,530 | 49,077 | 49,024 | 12,170 | ||||||||||||||
General and administrative | 14,396 | 12,207 | 54,844 | 59,517 | 14,973 | ||||||||||||||
Amortization of purchased intangibles | 324 | 666 | 1,737 | 2,705 | 337 | ||||||||||||||
Impairment of long-lived assets | 317 | 510 | 580 | 1,863 | 46 | ||||||||||||||
Startup costs | 20,409 | 2,897 | 54,517 | 3,535 | 15,136 | ||||||||||||||
Total operating expenses | 98,579 | 89,330 | 378,633 | 355,652 | 93,890 | ||||||||||||||
Income (loss) from operations | (11,278 | ) | (26,737 | ) | (30,541 | ) | 6,513 | 533 | |||||||||||
Interest income | 4,731 | 4,904 | 21,200 | 16,085 | 5,333 | ||||||||||||||
Interest expense | (6,447 | ) | (9,322 | ) | (33,490 | ) | (36,658 | ) | (8,167 | ) | |||||||||
Other income (expenses), net | 325 | 1,097 | (718 | ) | (945 | ) | (38 | ) | |||||||||||
Loss before income taxes | (12,669 | ) | (30,058 | ) | (43,549 | ) | (15,005 | ) | (2,339 | ) | |||||||||
Provision (benefit) for income taxes | 1,482 | (11,714 | ) | 9,667 | 33,282 | 12,962 | |||||||||||||
Net loss | $ | (14,151 | ) | $ | (18,344 | ) | $ | (53,216 | ) | $ | (48,287 | ) | $ | (15,301 | ) | ||||
Net loss per share attributable to Finisar Corporation common stockholders: | |||||||||||||||||||
Basic | $ | (0.12 | ) | $ | (0.16 | ) | $ | (0.45 | ) | $ | (0.42 | ) | $ | (0.13 | ) | ||||
Diluted | $ | (0.12 | ) | $ | (0.16 | ) | $ | (0.45 | ) | $ | (0.42 | ) | $ | (0.13 | ) | ||||
Shares used in computing net loss per share - basic | 117,953 | 114,742 | 117,178 | 113,864 | 117,608 | ||||||||||||||
Shares used in computing net loss per share - diluted | 117,953 | 114,742 | 117,178 | 113,864 | 117,608 | ||||||||||||||
Finisar Corporation | |||||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
4/28/2019 | 1/27/2019 | 10/28/2018 | 7/29/2018 | Apr 29, 2018 | |||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 814,185 | $ | 906,854 | $ | 332,138 | $ | 326,189 | $ | 312,257 | |||||||||
Short-term held-to-maturity investments | 100,000 | 3,754 | 837,658 | 832,681 | 884,838 | ||||||||||||||
Accounts receivable, net | 263,394 | 263,737 | 247,688 | 248,138 | 233,529 | ||||||||||||||
Inventories | 299,028 | 306,864 | 309,500 | 325,846 | 348,527 | ||||||||||||||
Other current assets | 44,224 | 44,713 | 51,232 | 54,863 | 56,001 | ||||||||||||||
Total current assets | 1,520,831 | 1,525,922 | 1,778,216 | 1,787,717 | 1,835,152 | ||||||||||||||
Property, equipment and improvements, net | 622,979 | 622,770 | 600,972 | 587,203 | 520,849 | ||||||||||||||
Purchased intangible assets, net | 4,183 | 4,977 | 5,810 | 6,742 | 7,878 | ||||||||||||||
Goodwill | 106,735 | 106,735 | 106,735 | 106,735 | 106,735 | ||||||||||||||
Other assets | 15,462 | 12,185 | 12,250 | 25,179 | 31,721 | ||||||||||||||
Deferred tax assets | 81,977 | 85,372 | 89,202 | 85,873 | 80,850 | ||||||||||||||
Total assets | $ | 2,352,167 | $ | 2,357,961 | $ | 2,593,185 | $ | 2,599,449 | $ | 2,583,185 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | $ | 132,440 | $ | 128,594 | $ | 133,539 | $ | 149,876 | $ | 132,161 | |||||||||
Accrued compensation | 31,804 | 41,216 | 36,152 | 35,349 | 32,525 | ||||||||||||||
Other accrued liabilities | 49,495 | 54,890 | 54,746 | 50,944 | 32,824 | ||||||||||||||
Deferred revenue | - | - | - | - | 9,535 | ||||||||||||||
Current portion of convertible notes | - | - | 257,067 | 254,150 | 251,278 | ||||||||||||||
Total current liabilities | 213,739 | 224,700 | 481,504 | 490,319 | 458,323 | ||||||||||||||
Long-term liabilities: | |||||||||||||||||||
Convertible notes | 512,105 | 506,454 | 499,838 | 494,316 | 488,877 | ||||||||||||||
Other non-current liabilities | 12,162 | 11,864 | 11,558 | 11,366 | 12,368 | ||||||||||||||
Total liabilities | 738,006 | 743,018 | 992,900 | 996,001 | 959,568 | ||||||||||||||
Stockholders' equity: | |||||||||||||||||||
Common stock | 118 | 118 | 117 | 117 | 115 | ||||||||||||||
Additional paid-in capital | 2,919,305 | 2,904,016 | 2,885,319 | 2,869,657 | 2,850,195 | ||||||||||||||
Accumulated other comprehensive income (loss) | (48,565 | ) | (46,645 | ) | (57,906 | ) | (44,356 | ) | (14,659 | ) | |||||||||
Accumulated deficit | (1,256,697 | ) | (1,242,546 | ) | (1,227,245 | ) | (1,221,970 | ) | (1,212,034 | ) | |||||||||
Total stockholders' equity | 1,614,161 | 1,614,943 | 1,600,285 | 1,603,448 | 1,623,617 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 2,352,167 | $ | 2,357,961 | $ | 2,593,185 | $ | 2,599,449 | $ | 2,583,185 | |||||||||
Note - Balance sheet amounts as of April 29, 2018 are derived from the audited consolidated financial statements as of that date. | |||||||||||||||||||
FINISAR NON-GAAP FINANCIAL MEASURES
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Finisar provides the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission: non-GAAP gross profit, non-GAAP operating income, non-GAAP income and non-GAAP net income per share. These non-GAAP financial measures are supplemental information regarding Finisar’s operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be outside of our ongoing core operating results. Management believes that tracking non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and non-GAAP net income per share provides management and the investment community with valuable insight into our ongoing core current operations, our ability to generate cash and the underlying business trends that are affecting our performance. These non-GAAP measures are used by both management and our Board of Directors, along with the comparable GAAP information, in evaluating our current performance and planning our future business activities. In particular, management finds it useful to exclude non-cash charges in order to better correlate our operating activities with our ability to generate cash from operations and to exclude certain cash charges as a means of more accurately predicting our liquidity requirements. We believe that these non-GAAP measures, when used in conjunction with our GAAP financial information, also allow investors to better evaluate our financial performance in comparison to other periods and to other companies in our industry.
In calculating non-GAAP gross profit in this release, we have excluded the following items from cost of revenues in applicable periods in this release:
In calculating non-GAAP operating income in this release, we have excluded the same items to the extent they are classified as operating expenses, and have also excluded the following items in applicable periods in this release:
In calculating non-GAAP income and non-GAAP income per share in this release, we have also excluded the following items in applicable periods in this release:
In addition, in this release we have adjusted non-GAAP income and non-GAAP income per share for the difference between GAAP income taxes and non-GAAP income taxes.
A reconciliation of this non-GAAP financial information to the corresponding GAAP information is set forth below:
Finisar Corporation | |||||||||||||||||||
Reconciliation of Results of Operations under GAAP and non-GAAP | |||||||||||||||||||
(Unaudited, in thousands, except per share data) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | Three Months Ended | |||||||||||||||||
Apr 28, 2019 | Apr 29, 2018 | Apr 28, 2019 | Apr 29, 2018 | Jan 27, 2019 | |||||||||||||||
GAAP to non-GAAP reconciliation of gross profit: | |||||||||||||||||||
Gross profit - GAAP | $ | 87,301 | $ | 62,593 | $ | 348,092 | $ | 362,165 | $ | 94,423 | |||||||||
Gross margin - GAAP | 28.2 | % | 20.2 | % | 27.2 | % | 27.5 | % | 28.8 | % | |||||||||
Adjustments: | |||||||||||||||||||
Cost of revenues | |||||||||||||||||||
Amortization of acquired technology | 471 | 604 | 1,959 | 2,437 | 496 | ||||||||||||||
Stock compensation | 4,527 | 3,453 | 16,074 | 12,665 | 4,248 | ||||||||||||||
Impairment of long-lived/intangible assets | 3,800 | 371 | 3,879 | 371 | 62 | ||||||||||||||
Reduction in force costs | 27 | 556 | 2,712 | 1,188 | 544 | ||||||||||||||
Acquisition related retention payment | - | 30 | 28 | 123 | (5 | ) | |||||||||||||
Write off of discontinued product inventory | (589 | ) | 8,995 | 1,004 | 12,443 | (894 | ) | ||||||||||||
Total cost of revenues adjustments | 8,236 | 14,009 | 25,656 | 29,227 | 4,451 | ||||||||||||||
Gross profit - non-GAAP | 95,537 | 76,602 | 373,748 | 391,392 | 98,874 | ||||||||||||||
Gross margin - non-GAAP | 30.8 | % | 24.7 | % | 29.2 | % | 29.7 | % | 30.2 | % | |||||||||
GAAP to non-GAAP reconciliation of operating income (loss): | |||||||||||||||||||
Operating income (loss) - GAAP | (11,278 | ) | (26,737 | ) | (30,541 | ) | 6,513 | 533 | |||||||||||
Operating margin - GAAP | -3.6 | % | -8.6 | % | -2.4 | % | 0.5 | % | 0.2 | % | |||||||||
Adjustments: | |||||||||||||||||||
Total cost of revenues adjustments | 8,236 | 14,009 | 25,656 | 29,227 | 4,451 | ||||||||||||||
Total operating expense adjustments | |||||||||||||||||||
Operating expenses - GAAP | 98,579 | 89,330 | 378,633 | 355,652 | 93,890 | ||||||||||||||
Research and development | |||||||||||||||||||
Reduction in force costs and other restructuring | 558 | 1,505 | 8,740 | 2,412 | 186 | ||||||||||||||
Acquisition related retention payment | (2 | ) | 32 | 39 | 140 | (5 | ) | ||||||||||||
Stock compensation | 5,230 | 6,034 | 23,050 | 24,336 | 5,683 | ||||||||||||||
Discontinued product service fees | - | 185 | 921 | 185 | - | ||||||||||||||
Sales and marketing | |||||||||||||||||||
Reduction in force costs and other restructuring | (18 | ) | 335 | 698 | 323 | 32 | |||||||||||||
Acquisition related retention payment | - | - | - | (2 | ) | - | |||||||||||||
Stock compensation | 2,034 | 1,956 | 8,213 | 7,931 | 2,012 | ||||||||||||||
General and administrative | |||||||||||||||||||
Reduction in force costs and other restructuring | 15 | 274 | 981 | 1,104 | 190 | ||||||||||||||
Stock compensation | 4,194 | 2,233 | 13,955 | 18,189 | 3,542 | ||||||||||||||
Acquisition related costs | 876 | 127 | 4,957 | 146 | 3,086 | ||||||||||||||
Litigation settlements and resolutions and related costs | - | 551 | 88 | 551 | - | ||||||||||||||
Amortization of purchased intangibles | 324 | 666 | 1,737 | 2,705 | 337 | ||||||||||||||
Startup costs | 20,409 | 2,897 | 54,517 | 3,535 | 15,136 | ||||||||||||||
Impairment of long-lived assets/intangible assets | 317 | 506 | 580 | 1,900 | 46 | ||||||||||||||
Total operating expense adjustments | 33,937 | 17,301 | 118,476 | 63,455 | 30,245 | ||||||||||||||
Operating expenses - non-GAAP | 64,642 | 72,029 | 260,157 | 292,197 | 63,645 | ||||||||||||||
Operating income - non-GAAP | 30,895 | 4,573 | 113,591 | 99,195 | 35,229 | ||||||||||||||
Operating margin - non-GAAP | 10.0 | % | 1.5 | % | 8.9 | % | 7.5 | % | 10.8 | % | |||||||||
GAAP to non-GAAP reconciliation of income (loss) before income taxes: | |||||||||||||||||||
Loss before income taxes - GAAP | (12,669 | ) | (30,058 | ) | (43,549 | ) | (15,005 | ) | (2,339 | ) | |||||||||
Adjustments: | |||||||||||||||||||
Total cost of revenues adjustments | 8,236 | 14,009 | 25,656 | 29,227 | 4,451 | ||||||||||||||
Total operating expense adjustments | 33,937 | 17,301 | 118,476 | 63,455 | 30,245 | ||||||||||||||
Other interest income | - | - | (13 | ) | (14 | ) | (13 | ) | |||||||||||
Non-cash imputed interest expenses on convertible debt | 5,420 | 7,863 | 28,341 | 30,833 | 6,940 | ||||||||||||||
Imputed interest related to restructuring | 12 | 23 | 65 | 106 | 15 | ||||||||||||||
Other (income) expense, net | |||||||||||||||||||
Loss (gain) on sale of assets | (75 | ) | (157 | ) | (117 | ) | (315 | ) | 85 | ||||||||||
Loss related to impairment of minority investments | - | - | 399 | 2,347 | - | ||||||||||||||
Foreign exchange transaction (gain) or loss | (332 | ) | (936 | ) | 482 | (1,254 | ) | 200 | |||||||||||
Amortization of debt issuance cost | 231 | 385 | 1,309 | 1,540 | 308 | ||||||||||||||
Total interest and other adjustments | 5,256 | 7,178 | 30,466 | 33,243 | 7,535 | ||||||||||||||
Income before income taxes - non-GAAP | 34,760 | 8,430 | 131,049 | 110,920 | 39,892 | ||||||||||||||
GAAP to non-GAAP reconciliation of net income (loss): | |||||||||||||||||||
Net loss - GAAP | (14,151 | ) | (18,344 | ) | (53,216 | ) | (48,287 | ) | (15,301 | ) | |||||||||
Total cost of revenues adjustments | 8,236 | 14,009 | 25,656 | 29,227 | 4,451 | ||||||||||||||
Total operating expense adjustments | 33,937 | 17,301 | 118,476 | 63,455 | 30,245 | ||||||||||||||
Total interest and other adjustments | 5,256 | 7,178 | 30,466 | 33,243 | 7,535 | ||||||||||||||
Income tax provision adjustments | (318 | ) | (14,364 | ) | (2,333 | ) | 22,782 | 7,262 | |||||||||||
Total adjustments | 47,111 | 24,124 | 172,265 | 148,707 | 49,493 | ||||||||||||||
Net income - non-GAAP | $ | 32,960 | $ | 5,780 | $ | 119,049 | $ | 100,420 | $ | 34,192 | |||||||||
Basic non-GAAP income per share | |||||||||||||||||||
GAAP earnings per share | $ | (0.12 | ) | $ | (0.16 | ) | $ | (0.45 | ) | $ | (0.42 | ) | $ | (0.13 | ) | ||||
Impact of all non-GAAP adjustments | $ | 0.40 | $ | 0.21 | $ | 1.47 | $ | 1.30 | $ | 0.42 | |||||||||
Non-GAAP earnings per share | $ | 0.28 | $ | 0.05 | $ | 1.02 | $ | 0.88 | $ | 0.29 | |||||||||
Diluted non-GAAP income per share | |||||||||||||||||||
GAAP earnings per share | $ | (0.12 | ) | $ | (0.16 | ) | $ | (0.45 | ) | $ | (0.42 | ) | $ | (0.13 | ) | ||||
Impact of all non-GAAP adjustments | $ | 0.39 | $ | 0.21 | $ | 1.45 | $ | 1.28 | $ | 0.42 | |||||||||
Non-GAAP earnings per share | $ | 0.27 | $ | 0.05 | $ | 1.00 | $ | 0.86 | $ | 0.29 | |||||||||
Shares used in computing non-GAAP income per share | |||||||||||||||||||
Basic | 117,953 | 114,742 | 117,178 | 113,864 | 117,608 | ||||||||||||||
Diluted | 120,795 | 115,991 | 119,389 | 116,274 | 119,570 | ||||||||||||||
Finisar-F
Investor Contact: | Press contact: |
Kurt Adzema | Victoria McDonald |
Chief Financial Officer | Director, Corporate Communications |
408-542-5050 or Investor.relations@finisar.com | 408-542-4261 |
Forward Looking Statements
This written communication contains forward-looking statements that involve risks and uncertainties concerning Parent’s proposed acquisition of the Company, the Company’s expected financial performance, as well as the Company’s strategic and operational plans. Actual events or results may differ materially from those described in this written communication due to a number of risks and uncertainties. The potential risks and uncertainties include, among others, the possibility that the Company may be unable to obtain required stockholder approval or that other conditions to closing the transaction may not be satisfied, such that the transaction will not close or that the closing may be delayed; the reaction of customers to the transaction; general economic conditions; the transaction may involve unexpected costs, liabilities or delays; risks that the transaction disrupts current plans and operations of the parties to the transaction; the ability to recognize the benefits of the transaction; the amount of the costs, fees, expenses and charges related to the transaction and the actual terms of any financings that will be obtained for the transaction; the outcome of any legal proceedings related to the transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction agreement. In addition, please refer to the documents that the Company files with the SEC on Forms 10-K, 10-Q and 8-K. The filings by the Company identify and address other important factors that could cause its financial and operational results to differ materially from those contained in the forward-looking statements set forth in this written communication. All forward-looking statements speak only as of the date of this written communication or, in the case of any document incorporated by reference, the date of that document. The Company is under no duty to update any of the forward-looking statements after the date of this written communication to conform to actual results.