3S Photonics SAS and Finisar Corp. announced their formal agreement to launch a partnership for the development of a new packaging platform for 980nm cooled laser pump modules. Under this agreement, 3S PHOTONICS will be the exclusive supplier of the 980nm laser chips used for this platform, and Finisar will implement a manufacturing line based on this platform in its newly expanded facilities in Wuxi, China. Finisar will use these 980nm pump modules in their EDFA and Line Card products for the telecom market. 3S PHOTONICS will use the packaging platform to serve its own customers. The 980nm lasers supplied by 3SPGroup are already fully qualified with outstanding field reliability. The availability of the modules resulting from this new packaging platform is expected by mid-2013.

Finisar Corp. reported consolidated unaudited earnings results for the third quarter and nine months ended January 27, 2013. For the quarter, the company reported revenues of $238,351,000 compared with $242,954,000 for the same period last year. Operating loss was $797,000 compared with operating income of $11,308,000 for the same period last year. Income was $3,407,000 or $0.04 diluted per share compared with loss of $8,909,000 for the same period last year. Revenues increased were primarily driven by growth in revenues from 10G and 100G transceivers and transponders for datacom applications. Loss before income taxes and non-controlling interest was $1,534,000 compared with income before income taxes and non-controlling interest $10,242,000 for the same period last year. Net loss attributable to common stockholders was $3,407,000 or $0.04 diluted per share compared with net income attributable to common stockholders $8,909,000 or $0.09 diluted per share for the same period last year. Operating income - non-GAAP was $17,377,000 compared with $23,973,000 for the same period last year. Non-GAAP income attributable to Finisar Corporation was $16,390,000 or $0.17 diluted per share compared with $21,878,000 or $0.23 diluted per share for the same period last year. Non-GAAP EBITDA was $31,142,000 compared with $35,420,000 for the same period last year. Capital expenditures totaled $32 million, primarily driven by the new building in Wuxi, China. For the nine months, the company reported Revenue was $690,918,000 compared with $712,669,000 for the same period last year. Loss from operations was $5,940,000 compared with income from operation of $27,215,000 for the same period last year. Loss before income taxes and non-controlling interest was $7,736,000 compared with income before income taxes and non-controlling interest $28,464,000 for the same period last year. Net loss attributable to common stockholders was $9,333,000 or $0.10 diluted per share compared with net income attributable to common stockholders $24,978,000 or $0.27 diluted per share for the same period last year. Operating income - non-GAAP was $45,215,000 compared with $68,476,000 for the same period last year. Non-GAAP income attributable to Finisar Corporation was $41,466,000 or $0.44 diluted per share compared with $62,943,000 or $0.66 diluted per share for the same period last year. Non-GAAP EBITDA was $84,719,000 compared with $101,056,000 for the same period last year. The company reported impairment of long lived assets of $4,886,000 for the quarter ended January 27, 2013. The company currently expects revenues for the fourth quarter of fiscal 2013 to be in the range of $235 million to $250 million; GAAP operating margin to be approximately 2%; non-GAAP operating margin to be approximately 7%; and non-GAAP earnings per diluted share to be in the range of approximately $0.15 to $0.19. Capital expenditures are expected to be approximately $32 million again in fourth quarter, primarily driven by the new building. The company expected operating expenses to be approximately $56.8 million and non-GAAP operating margin to be approximately 7%.

The U.S. District Court for the Northern District of California dismissed a securities fraud class action brought by investors against a Finisar Corp. alleging misrepresentations concerning the reasons for a revenue increase experienced by the firm. The court separately held that additional challenged statements about demand were not rendered misleading simply because they did not clarify that the demand for Finisar products may have been due to customer inventory build-up rather than purchases for immediate manufacture. In order to be actionable under the applicable securities laws, a statement must affirmatively create a false impression, and here, the complaint did not explain how the statements affirmatively created some alternate impression about the demand for Finisar products. As a result, the court concluded that the complaint did not sufficiently plead particular facts to demonstrate that the defendants made the type of material misrepresentation or omission sufficient to support a cause of action under §10(b) of the Securities Exchange Act of 1934. Accordingly, the defendants' motion to dismiss was granted without prejudice.