Finisar Corporation (NASDAQ:FNSR), a telecommunication company yesterday reported their fiscal fourth quarter and full year 2016 financial results. Finisar reported fourth quarter earnings of $0.29 per share which beat analyst expectations of $0.25 per share. Finisar reported fourth quarter revenues decreased 0.4% year over year to $318.8 million which beat analyst expectations of $317.88 million.
Finisar Corporation CEO’s Comments
Revenues for our fourth fiscal quarter were $318.8 million, an increase of $9.6 million, or 3.1% compared to the prior quarter, primarily driven by growth in demand for 40G and 100G transceivers for datacom applications including CFP, CFP2, CFP4, QSFP and QSFP28 form factors. Better than expected gross margins, due to favorable product mix, and lower expenses resulted in earnings per fully diluted share exceeding the upper end of our prior guidance range,” said Jerry Rawls, Finisar’s Chief Executive Officer. Market Wired
FNSR Technical Analysis
FNSR opened trading yesterday at $17.24 which was down from the previous days trading of $17.44. FNSR closed trading yesterday at $17.58 and spiked up after market to $19.49, equivalent to a 11% increase from the closing price. Taking a look at the daily chart we can see the last time FNSR traded above these levels was on June 24th, 2014 when it traded at $19.75 . Taking a closer look at the daily chart we can see that FNSR has been on a upward trend dating back to February 11th when it traded at $12.32. FNSR has a float of 106.35 million shares and traded 2.07 times the normal daily trading volume on Thursday. For trading purposes, I would like to see FNSR open trading on Friday above $18.85 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Finisar Corporation provides optical subsystems and components for data communication and telecommunication applications in the United States, Malaysia, China, and internationally. Its optical subsystems primarily consist of transmitters, receivers, transceivers, transponders, and active optical cables that provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in communication networks, including the switches, routers, and servers used in wireline networks, as well as the antennas and base stations used in wireless networks.
The company also offers wavelength selective switches, which are used to switch network traffic from one optical fiber to multiple other fibers without converting the optical signal to an electronic signal. In addition, it provides optical components comprising packaged lasers, receivers and photodetectors for data communication and telecommunication applications; and passive optical components for telecommunication applications. Finisar Corporation markets its optical products through its direct sales force, as well as through a network of distributors and manufacturers’ representatives to the original equipment manufacturers of storage systems, networking equipment, and telecommunication equipment. The company was founded in 1987 and is headquartered in Sunnyvale, California.