The more than 35% FNSR stock price drop prompted an investigation on behalf of investors of Finisar Corporation (NASDAQ: FNSR) over possible securities laws violations.
The investigation by a law firm focuses concerns whether certain financial statements issued by Finisar Corp. regarding its business, operations and financial condition were potentially false and misleading and in violation of the federal securities laws.
Finisar Corporation 12months Total Revenue went from $418.55million to $629.88 from April 30, 2007 to April 30, 2010. Finisar Corp. was able to come out of a Net Loss of $48.91million reported on April 30, 2007 to a Net Income of $14.13million reported on April 30, 2010.
Shares of Finisar Corporation (Public, NASDAQ:FNSR) traded during October 2010 under $20 per share
On December 1, 2010 Finisar Corporation (NASDAQ: FNSR), announced record quarterly revenues and profitability for its second quarter ended October 31, 2010. Shares of Finisar Corporation (FNSR) rose to almost $30 per share. Then on December 20, 2010 Finisar Corporation announced public offering of common stock. Shares of Finisar Corporation continued to increase to $43.22 on March 4, 2011.
Then on March 8, 2011, after the close of trading, Finisar Corp. announced its financial results for its third quarter ended Jnauary 30, 2011. Finisar Corp. said it had record revenues exceeding $1.0billion annual run-rate. Hoever Finisar Corp. also disclosed that it expected adjusted earnings in the range of approximately $0.31 to $0.35 per share for the three months ending April 30, 2011. According to analysts, on average, they had been looking for profits of about $0.44 cents per share.
Finisars revenue forecast for the fourth quarter of $235 million to $250 million fell short of Wall Street expectations for $258.6 million, so the investigation.
Finisar Corp. said in its March 8 announcement that it identified a slowdown in its business in China, a 10-day shutdown for Chinese New Year, and adjustments of inventory levels by some of its telecommunications customers as reasons for the shortfall.
Shares of Finisar Corporation fell from $40.04 on March 8, 2011 to $25 on March 9, 2011.