Finisar Corporation Has Another Record Quarter

In our just completed first quarter, we reached our previous target financial model earlier than we had predicted, said Jerry Rawls, Finisar's executive Chairman of the Board. We achieved company records for revenues, gross margin, operating margin and EPS. Furthermore, the demand environment continued to be very strong for us, particularly for our higher data rate transceivers and our ROADM products. As a sign of that ongoing strength, our book-to-bill ratio in the quarter continued to be above 1.0.

Gross margins continued to improve last quarter, reflecting a favorable product mix along with the benefits of being vertically integrated, said Eitan Gertel, Finisar's Chief Executive Officer. Adding capacity continues to be a top priority for us next quarter, particularly for our ROADM products where demand currently exceeds our ability to supply. The mix of WSS components and ROADM linecard business last quarter tends to mask the progress we made in terms of adding capacity as overall unit shipments increased by more than 25%. We intend to add significant ROADM capacity again in the second quarter based on a number of initiatives that went into effect toward the end of last quarter.