(By Balaseshan) Finisar Corp. (NASDAQ: FNSR), a provider of optical subsystems and components, reported a drop in quarterly earnings due to higher costs and lower revenue. Results exceeded Street's expectations, sending its shares up 5.24% in aftermarket.
Earnings for the second quarter were $271,000 or break even per share, down from $5.93 million or $0.06 per share last year. Adjusted earnings per share (EPS) fell to $0.15 from $0.23.
Revenue decreased 3.9% to $232.04 million due to a decline in Telecom revenue.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.14 per share on revenue of $231.85 million for the second quarter.
Datacom revenue rose to $139.8 million from $128.5 million, while Telecom revenue fell to $92.2 million from $113.0 million.
Gross margin declined to 27.5% from 29.1% reflecting the impact of lower revenue levels relative to fixed manufacturing costs.
Looking ahead into the third quarter of fiscal 2013, the company expects adjusted earnings of $0.14 to $0.18 per share and revenue of $230 million to $245 million, while Street predicts profit of $0.17 per share on revenue of $239.48 million.
Operating margin is expected in range of about 0.0% to 1.5%, while adjusted operating margin is predicted to be about 6.5% to 8.0% for the third quarter.
FNSR closed Wednesday's regular session down 1.77% at $13.35. The stock has been trading between $10.95 and $23.50 for the past 52 weeks.