Balance sheet is a mess.
Short sellers made a big move into Finisar (NASDAQ: FNSR, Stock Forum) based on Nasdaq data as of May 30. Shares short moved up 9.3 million to 31.9 million. The stock has been dropping recently and now trades at $1.62, down from a 52-week high of $4.21.
Short sellers are turning out to be right, at least in this case. The company missed all its earnings numbers last week and Piper Jaffray downgraded the stock. Guidance was also below Wall Street hopes.
Fiscal fourth quarter revenue hit $121 million, up 25% from $96.6 million in the same quarter last year. Even with good sales growth, FNSR can't make money. The quarterly net loss for the period was $8.7 million, or three cents per share, compared with a net loss of $16 million, or five cents per share, last year.
The company's balance sheet is a mess. It has over $100 million in convertible notes under current liabilities and $150 million under long-term liabilities.
The fiber optic solutions firm also spun off some assets of its network tools business, but no one seems to care. A fiber operation should be doing well in this world of big broadband growth – FNSR isn't.
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