Net income climbed to $26.0 million, or 2 cents per share, for the three months that ended Aug. 2. That compares with $2.8 million, or a penny per share, during the three months that ended Aug. 3, 2008.

Excluding one-time items, profit dropped to $2.5 million, or zero cents per share, from $10.9 million, or 3 cents per share.

Revenue increased 11 percent to $128.7 million from $115.8 million in the year-earlier period, including an 11 percent rise in revenue from the company's optics business - an increase that reflects the company's acquisition of rival Optium last year.

Analysts polled by Thomson Reuters, on average, expected the company to break even on revenue of $129.2 million. Analysts' estimates generally exclude one-time items.

During the quarter, the company completed the sale of its network tools division to JDS Uniphase Corp., which had said it planned to buy the business for about $40.6 million in cash. It was reported as a discontinued operation.

"Order trends continue to underscore healthy customer demand," Jerry Rawls, Finisar's executive board chairman, said in a statement.

Eitan Gertel, Finisar's CEO, said the company "can look for additional improvement in the near term."

Finisar's clients include Cisco Systems Inc., the world's largest supplier of Internet networking equipment, and data-storage specialist EMC Corp.

In August 2008, Finisar completed a $232.2 million acquisition of rival Optium Corp.

Finisar also announced Thursday that its board of directors approved a 1-for-8 reverse split of its common stock, effective at 4:30 p.m. Eastern time Friday, Sept. 25. The stock will begin trading on a split adjusted basis Sept. 28.

Shares of Finisar tumbled 10 cents, or 9.8 percent, to 92 cents after hours. During the regular session, they rose 2 cents, or 2 percent, to close at $1.02.

A service of YellowBrix, Inc.