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Finisar Announces Agreement to Sell Network Tools Business
SUNNYVALE, CA, Jul 09, 2009 (MARKETWIRE via COMTEX) --
Finisar Corporation (NASDAQ: FNSR), a global technology leader for
fiber optic subsystems, today announced that it has entered into a
definitive agreement to sell its Network Tools business (excluding
accounts receivable and payables related to the business) to JDSU
(NASDAQ: JDSU) for $40.6 million in cash. The sale is expected to be
completed on or about July 15, 2009 after which Finisar will provide
support services to JDSU during a transition period.
Finisar's Network Tools Division has developed a leading position in
the market for data protocol analysis equipment. These analyzers
allow engineers, service technicians and network managers to generate
and capture data at high speeds, filter the data, identify various
types of intermittent errors and verify protocol compliance for SANs
and LANs, including emerging technologies such as VOIP, 10GigE,
iSCSI, SAS/SATA and FCoE. Because of the Company's early work in
developing the Fibre Channel standard for storage networks in 1994,
it has cultivated a leading share of the test equipment market for
SAN applications.
"The recent Optium merger helped underscore the fact that we are
primarily an optics company and that, for the Network Tools business
to continue to grow and be successful, it needs to have a larger
presence and a broader product line," said Jerry Rawls, Finisar's
executive Chairman of the Board. "I confess I have mixed emotions
about the sale as we started this business in the early '90s and have
had a long track record of successes. We have helped our SAN
customers create more reliable storage networks with robust
interoperability. But, the sale of this business will enable us to
focus all of our attention and resources on what we do best: design
next generation products for optical communications."
"I want to wish the employees of Network Tools much success in the
future," added Rawls. "I appreciate all their hard work in creating
exciting products, building a profitable business and delivering value
and service to our customers."
The Network Tools business contributed revenues of approximately
$44.2 million in Finisar's fiscal year ended April 30, 2009 and
contributed in excess of $7 million in EBITDA.
Finisar noted that its previous revenue guidance of $120 to $130
million for the first quarter ending August 2, 2009 remains unchanged
despite the sale of the Network Tools business, but also noted that
its gross margin guidance would likely decrease slightly due to a
shift in product mix, with lower revenues (due to a prorated quarter)
from higher-margin Network Tools products offsetting a similar
increase in optics revenues. The Company also noted that it would
record a one-time nonrecurring gain in the first quarter associated
with the sale.
SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
The statements contained in this press release that are not purely
historical are forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended. All
forward-looking statements included in this press release are based
upon information available to Finisar as of the date hereof, and
Finisar assumes no obligation to update any such forward-looking
statements. Forward-looking statements involve risks and
uncertainties which could cause actual results to differ materially
from those projected. Examples of such risks include those associated
with: the uncertainty of customer demand for Finisar's products; the
rapidly evolving markets for Finisar's products and uncertainty
regarding the development of these markets; Finisar's historical
dependence on sales to a limited number of customers and fluctuations
in the mix of products and customers in any period; ongoing new
product development and introduction of new and enhanced products;
the challenges of rapid growth followed by periods of contraction; and
intensive competition. Additional risks include the potential impact
of pending civil litigation arising from the investigation of
Finisar's historical option granting practices. Further information
regarding these and other risks relating to Finisar's business is set
forth in Finisar's annual report on Form 10-K (filed July 9, 2009).
ABOUT FINISAR
Finisar Corporation (NASDAQ: FNSR) is a global technology leader for
fiber optic subsystems that enable high-speed voice, video and data
communications for networking, storage, wireless, and cable TV
applications. For more than 20 years, Finisar has provided critical
optics technologies to system manufacturers to meet the increasing
demands for network bandwidth and storage. Finisar is headquartered
in Sunnyvale, California, USA with R&D, manufacturing sites, and
sales offices worldwide. For additional information, visit
www.finisar.com.
Contact:
Steve Workman
Chief Financial Officer
408-548-1000
Victoria McDonald
Senior Manager, Corporate Communications
408-542-4261
investor.relations@Finisar.com
SOURCE: Finisar
mailto:investor.relations@Finisar.com
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