Finisar Reports Prelim Q1

SUNNYVALE, Calif. -- Finisar Corporation (NASDAQ: FNSR), a technology leader in gigabit fiber optic solutions for high-speed data networks, today reported preliminary financial results for its first fiscal quarter ended July 29, 2007.

The Company is not providing detailed GAAP or non-GAAP financial results for the quarter. The preliminary non-GAAP financial metrics presented below do not reflect any adjustments that may be needed as a result of the previously announced review of the Company's historical stock option grants and associated accounting that remains ongoing at this time. These results should be considered preliminary until such time as the Company files its annual report on Form 10-K for fiscal 2007 and other interim reports on Form 10-Q, including the Form 10-Q for the first quarter just ended.

Non-GAAP Financial Metrics -- First Quarter Ended July 29, 2007

• Revenues of $105.7 million represented an 8.7% increase from $97.3
  million in the previous quarter and were down slightly from $106.2 million
  in the comparable quarter of the prior year. The favorable comparison to
  the previous quarter was primarily related to the transition by two
  customers to "just-in-time inventory" arrangements which impacted revenues
  during the previous quarter and the utilization by certain customers of
  excess inventories of products designed for SAN applications during that
  quarter.
• Revenues of $96.4 million from the sale of optical products
  represented a 9% increase from $88.4 million in the previous quarter and
  were up slightly from $96.0 million in the comparable quarter of the prior
  year. Revenues from the sale of network test and monitoring products of
  $9.4 million represented a 5.5% increase from $8.9 million in the previous
  quarter and a decline of 8.1% from $10.0 million in the comparable quarter
  of the prior year.