-=Lumentum (LITE) lowers Q2 guidance based on reduced shipments of its 3D sensing lasers

• Lumentum (LITE) cuts Q2 guidance based on what seems like reduced shipments for its 3D sensing lasers, a key component for Face ID in the iPhone , noting "We recently received a request from one of our largest Industrial and Consumer customers for laser diodes for 3D sensing to materially reduce shipments to them during our fiscal second quarter for previously placed orders that were originally scheduled for delivery during the quarter."

• Lowers Q2 EPS to $1.15-1.34 from $1.60-1.75 vs $1.67 S&P Capital IQ Consensus; revs to $335-355 mln from $405-430 mln vs $420.47 mln S&P Capital IQ Consensus
• "We recently received a request from one of our largest Industrial and Consumer customers for laser diodes for 3D sensing to materially reduce shipments to them during our fiscal second quarter for previously placed orders that were originally scheduled for delivery during the quarter," said Alan Lowe, President and CEO. "With our proven ability to deliver high volumes, years of experience, hundreds of millions of devices in the field, and new product and customer funnel, we remain confident in our leadership position in the nascent market for laser diodes for 3D sensing."
• Note the customer is likely Apple (AAPL), which seems to confirm shipment cuts reported by Nikkei last Monday.
• Lumentum is the main supplier for vertical-cavity surface-emitting lasers (VCSELs), which enable 3D sensing (Face ID) technology in Apple's (AAPL -2.8%) iPhone. This jives with what the Nikkei reported one week ago, that Apple had recently cut orders for the iPhone XR and increased orders for the iPhone 8 and 8 Plus. The iPhone XR is the newest lower cost option while the 8/8+ are last year's cheaper models without 3D sensing/Face ID capability.
• Recall Apple offered soft guidance for the holiday quarter on November 1 while announcing it will no longer disclose product shipment disclosures going forward. Apple is using higher priced iPhones to drive growth in a stagnant/saturated smartphone market where the replacement cycle is getting longer. Bernstein said Apple's guidance implied shipments down 5-10% year-over-year.
• The number two and three VCSEL suppliers II-VI (IIVI -2.7%) and Finisar (FNSR -3.4%) announced a merger on Friday morning.

=Finisar (FNSR) to be acquired by II-VI (IIVI) for $26.00 per share

Finisar to be acquired by II-VI (IIVI) in cash and stock transaction, valued at $26.00 per share 

• II-VI Incorporated (IIVI) and Finisar (FNSR) announced that they have entered into a definitive merger agreement under which II-VI will acquire Finisar in a cash and stock transaction with an equity value of approximately $3.2 billion.
• Under the terms of the merger agreement, which has been unanimously approved by the Boards of Directors of both companies, Finisar's stockholders will receive, on a pro-rated basis, $15.60 per share in cash and 0.2218x shares of II-VI common stock, valued at $10.40 per share based on the closing price of II-VI's common stock of $46.88 on November 8, 2018. The transaction values Finisar at $26.00 per share, or approximately $3.2 billion in equity value and represents a premium of 37.7% to Finisar's closing price on November 8, 2018. Finisar shareholders would own approximately 31% of the combined company.
• Transaction Details - II-VI intends to fund the cash consideration with a combination of cash on hand from the combined companies' balance sheets and $2 billion in funded debt financing. The transaction is expected to close in the middle of calendar year 2019, subject to approval by each company's shareholders, antitrust regulatory approvals and other customary closing conditions.

====Finisar (FNSR) reported earnings on Thur 8 March 2018 (a/h)

Finisar misses by $0.03, reports revs in-line; guides Q4 EPS below consensus, revs below consensus 

• Reports Q3 (Jan) earnings of $0.20 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $0.23; revenues fell 12.7% year/year to $332.4 mln vs the $333.15 mln Capital IQ Consensus.
• Co issues downside guidance for Q4, sees EPS of $0.09-0.15, excluding non-recurring items, vs. $0.21 Capital IQ Consensus Estimate; sees Q4 revs of $300-320 mln vs. $332.01 mln Capital IQ Consensus Estimate. 

=Finisar (FNSR) to receive $390 mln as part of Apple's advanced manufacturing fund

Finisar is a manufacturer of optical communication components and subsystems. In 2008, Finisar merged with Optium Corporation.

• Headquarters: Sunnyvale, CA
• finisar.com
• Face ID tech company

• LITE also makes VCSELs for 3D sensing. IIVI is also in the space.

Finisar to receive $390 mln as part of Apple's advanced manufacturing fund  

Apple (AAPL) announced the latest award from its $1 billion Advanced Manufacturing Fund. Finisar, a leading manufacturer of optical communications components, will receive $390 million as part of Apple's commitment to support innovation and job creation by American manufacturers.

• As a result of Apple's commitment, Finisar will transform a long-shuttered, 700,000-square-foot manufacturing plant in Sherman, Texas, into the high-tech VCSEL capital of the US.

The award will enable Finisar (FNSR) to exponentially increase its R&D spending and high-volume production of vertical-cavity surface-emitting lasers (VCSELs). VCSELs power some of Apple's most popular new features, including Face ID, Animoji and Portrait mode selfies made possible with the iPhone X TrueDepth camera, as well as the proximity-sensing capabilities of AirPods.

VCSEL technology is a better performing, more compact and cost-efficient solution compared to traditional edge-emitting lasers for many emerging applications. Apple has rapidly adopted depth-sensing technology in recent years, leading to the development and production of the most advanced VCSELs used in the history of consumer electronics. In the fourth quarter of 2017, Apple will purchase 10 times more VCSEL wafers than were previously manufactured worldwide over a similar time period.

Description

Finisar Corporation (Finisar) is a provider of optical subsystems and components that are used in data communication and telecommunication applications. The Company's optical subsystems consist of transmitters, receivers, transceivers, transponders and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in these networks, including the switches, routers, and servers used in wireline networks. These products rely on the use of semiconductor lasers and photodetectors in conjunction with integrated circuits and optoelectronic packaging to provide a means for transmitting and receiving digital signals over fiber optic cable at speeds ranging from less than one gigabit per second (Gbps), to more than 100 Gbps, over distances of less than 10 meters to more than 2,000 kilometers, using a range of network protocols and physical configurations.

Key stats and ratios

	Q4 (Oct '17)	2017
Net profit margin	1.76%	17.20%
Operating margin	2.85%	12.20%
EBITD margin	-	18.77%
Return on average assets	0.90%	11.92%
Return on average equity	1.45%	18.26%
Employees	14,000

=Finisar (FNSR) reported earnings on Thur 9 March 2017 (a/h)

• Finisar misses Street 3Q forecasts

SUNNYVALE, Calif. (AP) _ Finisar Corp. (FNSR) on Thursday reported fiscal third-quarter earnings of $46.4 million.

On a per-share basis, the Sunnyvale, California-based company said it had net income of 40 cents. Earnings, adjusted for stock option expense and non-recurring costs, were 59 cents per share.

The results fell short of Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 61 cents per share.

The fiber optic component supplier posted revenue of $380.6 million in the period, also missing Street forecasts. Seven analysts surveyed by Zacks expected $389.1 million.

For the current quarter ending in April, Finisar expects its per-share earnings to range from 50 cents to 56 cents.

The company said it expects revenue in the range of $360 million to $380 million for the fiscal fourth quarter. Analysts surveyed by Zacks had expected revenue of $376.8 million.

Finisar shares have climbed 15 percent since the beginning of the year. In the final minutes of trading on Thursday, shares hit $34.90, more than doubling in the last 12 months.

Finisar (FNSR) reported earnings Thur 8 Dec 16 (a/h)

** charts before earnings **

 

** charts after earnings **

Finisar beats by $0.12, beats on revs; guides Q3 EPS above consensus, revs above consensus:

• Reports Q2 (Oct) earnings of $0.58 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus of $0.46; revenues rose 15.2% year/year to $369.9 mln vs the $364.29 mln Capital IQ Consensus. Non-GAAP gross margin improved to 37.2% compared to 33.1% in the first quarter.
• "This growth was primarily driven by strong demand for 100G transceivers. In addition, customer demand for wavelength selective switch and ROADM line card products was strong. Our gross margins improved significantly due to a favorable product mix and leverage achieved from our vertical integration with larger volumes. The combination of revenues being at the higher end of our guidance range with higher gross margins resulted in earnings per fully diluted share above our guidance range,"
• Co issues upside guidance for Q3, sees EPS of $0.58-0.64, excluding non-recurring items, vs. $0.48 Capital IQ Consensus Estimate; sees Q3 revs of $378-398 mln vs. $377.62 mln Capital IQ Consensus Estimate. Co sees Q3 non-GAAP gross margin of ~37% to 38%, non-GAAP operating margin of ~18.5% to 19.5%.

Finisar (FNSR) has been upgraded

 

• 3 months later (Dec '16)