(By Balaseshan) Finisar Corp. (NASDAQ:FNSR), a provider of optical subsystems and components, reported a quarterly loss due to higher costs and lower revenue. The company guided second quarter results below Street's view, sending its shares down 3.40% in aftermarket.
Loss for the first quarter was $6.20 million or $0.07 per share, compared to a profit of $10.14 million or $0.11 per share last year. Adjusted earnings fell to $10.87 or $0.12 per share from $20.07 million or $0.21 per share.
Revenue decreased 3.4% to $220.53 million, primarily due to current macroeconomic conditions, especially in Europe, as well as the slowing of economic growth in China.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.14 per share on revenue of $226.28 million.
The company said its first quarter results, as expected, was challenging. Generally telecom spending throughout the world has been soft. In addition, there were two fewer shipping days in the first quarter than in the previous quarter.
Gross margin declined to 26.2% from 29.1% reflecting the impact of lower revenue levels relative to fixed manufacturing costs.
Looking ahead into the second quarter of fiscal 2013, the company expects adjusted earnings of $0.12 to $0.16 per share and revenue of $225 million to $240 million, while Street predicts profit of $0.19 per share on revenue of $236.22 million.
Operating margin is expected in range of about 0.0% to 1.5%, while adjusted operating margin is predicted to be about 5.7% to 7.2% for the second quarter.
FNSR closed Tuesday's regular session down 1.60% at $13.52. The stock has been trading between $11.24 and $23.50 for the past 52 weeks.