Incorporated in 1987, Finisar Corporation is a leading provider of fiber optical subsystems and components as well as network test and monitoring systems. Finisar products enable high-speed data communications for networking and storage applications over Gigabit Ethernet Local Area Networks (LANs), Fibre Channel Storage Area Networks (SANs), and Metropolitan Area Networks (MANs) using both IP and SONET/SDH-based protocols. Finisar funded its initial product development largely through revenues derived under research and development contracts. The company went public in November 1999 and again raised capital through a secondary offering in April 2000.
Finisar reports its revenues under two operating segments.
Optical subsystems (contributed 91.1% of 2007 revenue) consists primarily of transmitters, receivers, and transceivers principally based on the gigabit Ethernet, fiber channel, and synchronous optical network (SONET) protocols. A transmitter converts electrical signals into optical signals for transmission over fiber optics. Receivers incorporating photo detectors convert incoming optical signals into electric signals. A transceiver combines the functions of both transmitter and receiver in a single device. The company's optical subsystem products perform these functions and support a range of protocols, transmission speeds, fiber types, wavelengths, transmission distances, physical configurations, and software enhancements. These products rely on the use of digital semiconductor lasers in conjunction with integrated circuit design and novel packaging technology to provide a cost-effective means for transmitting and receiving digital signals using a wide range of network protocols, transmission speeds, physical mediums, and configurations over distances of 200 meters to 120 kilometers. Optical subsystems are sold to leading manufacturers of storage and networking equipment such as Brocade, Cisco Systems, EMC, Emulex, Hewlett-Packard Company, Huawei, McData, and Qlogic. Sales of optical components consist primarily of packaged lasers and photo-detectors used in transceivers, primarily for LAN and SAN applications. Optical subsystems also include multiplexers, de-multiplexers, and optical add/drop modules for use in MAN applications.
Network test and monitoring systems (contributed 8.9% of 2007 revenue) includes products designed to test the reliability and performance of equipment. These solutions allow engineers, service technicians, and network managers to generate and capture data at high speeds, filter the data, and identify various types of intermittent errors and other network problems for SANs, LANs, wireless networks, voice-over-Internet protocol applications, and emerging technologies, including 10-gigabit Ethernet (10GbE), Internet small computer systems interface (iSCSI), fiber channel over IP (FCIP), serial-attached small computer system interface (SAS) and serial advanced technology attachment (SATA). These products are sold to original equipment manufacturers (OEMs) such as Brocade, EMC, Emulex, Hewlett-Packard, IBM, McData and Qlogic and, to a lesser degree, to the operators of networking and storage data centers for monitoring and troubleshooting the performance of their installed systems.
With over 4,200 employees, Finisar has operations worldwide with corporate headquarters in Sunnyvale, California, U.S.A. Its product development and manufacturing facilities are located in Texas, Malaysia, China, and Singapore. Geographically, the company generated 64.4% of its total 2007 revenue from the U.S. and the remaining 35.6% from the rest of the world. The company's customers include Alcatel, Cisco, Dell, EMC, Hewlett Packard, IBM, Juniper, Intel, Motorola, Nokia, Nortel, and Siemens among others.