Finisar Corp. reported earnings results for the first quarter ended July 30, 2017. For the period, the company reported non-GAAP net income of $0.40 per share, falling from the fiber optic communications company's $0.50 per share year-ago adjusted profit and in line with the Capital IQ consensus. Non-GAAP revenue declined 4.4% to $341.8 million during the three months ended July 30 compared with the same quarter last year, in-line with the $341.2 million consensus. The company reported fiscal first-quarter profit of $19.9 million. Earnings per share were 17 cents. Non-GAAP operating income was $46 million or 13.5% of revenues compared to $58.4 million or 16.3% of revenue in the fourth quarter. Non-GAAP income was $45.8 million or $0.40 per diluted share compared to $57.5 million or $0.50 per diluted share in the fourth quarter. Interest and other income was approximately $2.4 million in the first quarter. Capital expenditures were approximately $51.9 million in the first quarter.

For the second quarter of fiscal 2018, excluding one-time items, the company is projecting non-GAAP fiscal second quarter earnings in a range of $0.27 to $0.33 per share on between $322 million to $342 million in revenue. Capital expenditures for the second quarter of fiscal 2018 are estimated to be approximately $50 million to $55 million. The company expects revenues for datacom products to be relatively flat in the second quarter. The company expects second quarter non-GAAP gross margins to be approximately 33% to 34% due to lower revenue levels, higher depreciation levels and the impact of the annual employee merit increases that took effect approximately August 1. Non-GAAP operating margins are expected to be in the range of 10% to 11%.

Non-GAAP taxes for the remainder of the fiscal year 2018 are estimated at approximately 6%.