FLASH: Finisar Surprise to the Upside

Finisar beats by $0.03, reports revs in-line; guides Q2 EPS in-line, revs in-line (18.64 +0.18)
Reports Q1 (Jul) earnings of $0.21 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.18; revenues rose 9.8% year/year to $228.2 mln vs the $228.5 mln consensus. Co issues in-line guidance for Q2, sees EPS of $0.20-0.24, excluding non-recurring items, vs. $0.20 Capital IQ Consensus Estimate; sees Q2 revs of $235-$250 mln vs. $236.27 mln Capital IQ Consensus Estimate. Gross margin decreased to 29.1% of revenues from 34.1% in the first quarter of the prior year and from 31.6% in the preceding quarter. Co states “We expect production of this product to start to ramp during the second quarter of fiscal 2012. In addition, on June 29, 2011, we successfully closed our previously announced cash tender offer for the remaining outstanding shares of Ignis ASA and now hold 100% of the outstanding shares of Ignis.”