Finisar Beats Expectations

Thu. September 11, 2008; Posted: 07:10 AM

Sep 11, 2008 (Zacks Investment Research via COMTEX) -- OPTM | Quote | Chart | News | PowerRating -- Finisar Corp. (FNSR) has gained a strong position in the short-distance, low-cost portion of the Ethernet market. FNSR's acquisition of Optium Corporation further compliments its product portfolio and should be accretive to its earnings in 2009. Although some recent data points indicate that spending on network equipment may be slowing, FNSR has reported strong results and given good guidance. As such, we maintain our Hold rating with our $1.50 target price. On September 8, Finisar announced financial results for fiscal 2009 first quarter. Revenue for the quarter was $128.7 million, exceeding the company's guidance of $120 million to $125 million. This represents a 21.7% increase in revenue from the $128.7 million reported in the year-ago quarter and a 6.4% increase over the $121.0 million reported in the previous quarter. The company has been targeting the telecommunications industry and has been deeply involved in re-tooling its legacy infrastructure. As per IDC, the worldwide market for telecommunications infrastructure equipment will exceed $109.9 billion in 2011, increasing at a five-year compound annual growth rate (CAGR) of 4.2%. Optical networking will reach $13.7 billion and the access market $8.5 billion by 2011, driven by demand for broadband, VoIP and triple-play services. According to Gartner Group, the total amount of shared network storage is expected to grow at a rate of almost 70% per year during 2005-2009. Anita Mohota contributed to the report. Read the full analyst report on FNSR

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For full details on Finisar Corporation (FNSR) click here. Finisar Corporation (FNSR) has Short Term PowerRatings of 4. Details on Finisar Corporation (FNSR) Short Term PowerRatings is available at This Link.

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