World’s Largest Supplier of Optical Solutions
for the Communications Industry
© Finisar Corporation
1
Financial Presentation and Forward Looking Statements

Forward Looking Statements
 This presentation contains forward-looking statements as defined under the Private
Securities Litigation Act of 1995. Except for historical information, the matters discussed in
this presentation contain forward-looking statements regarding future trends or events that
involve risks and uncertainties. Please be aware that these statements are only
predictions and that actual events or results may differ materially. Please refer to the
Company’s Form 10-K and other interim reports as filed with the Securities and Exchange
Commission for a discussion of those risk factors. The Company assumes no obligation to
update the information in this presentation.

GAAP Reconciliation
 References to financial measures in this presentation will include references to non-GAAP
financial measures. In addition to reporting financial results in accordance with U.S. GAAP,
Finisar provides supplemental information regarding its operating performance on a nonGAAP basis. Finisar believes this supplemental information provides investors and
management with additional insight into its underlying core operating performance by
excluding a number of non-cash and cash charges, as well gains or losses that occur
relatively infrequently and/or that management considers to be outside of our ongoing core
operating results. Finisar provides a complete reconciliation between GAAP and nonGAAP financial results information in its earnings release which is posted in the investors
relations section of the company’s web site www.finisar.com.

Financial guidance for fiscal Q2FY17 is per earnings call on September 8, 2016 and is not being
updated or confirmed as of any other date.
© Finisar Corporation
2
Finisar Corporation
 Optics industry leader with ~ $1.3B annual revenue
Market Share
 Founded in 1988
 IPO in 1999 (NASDAQ: FNSR)
 Broadest and most advanced product portfolio
 Vertically integrated with low cost manufacturing
12.8%
13.3%
14.5%
15.9%
16.1%
9.2%
 Experienced management team
 14,000 employees
 1300+ Issued U.S. patents
Corporate Headquarters: Sunnyvale, CA USA
CY04
CY06
CY09
CY11
CY13
CY15
Source: Ovum (May 2016)
© Finisar Corporation
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Broad Product Portfolio and Customer Base
DATACOM
CUSTOMERS
PRODUCTS
SFP+
SFP
Optical
Engine (BOA)
QSFP/QSFP28
Active Optical
Cables
CXP
CFP
CFP2/ CFP4
X2
XFP
TELECOM
PRODUCTS
SFP
ROADM line card
High speed
components
XFP
WSS
Tunable laser
SFP+
WDM Passives
CATV
© Finisar Corporation
CUSTOMERS
CFP2-ACO
Amplifiers
PON
4
Key Products for FY17
Engineering Innovation Driving the Future of Optics
100G
QSFP28
Transceivers




Broadest QSFP28 portfolio in the Industry
Vertical integration: optics, ICs, packaging
Leveraging 25G VCSELs & DFB lasers
Utilizes existing high-volume 40G QSFP+ manufacturing environment
100/200G
Coherent
CFP2-ACO
Transceiver




Full vertical integration of lasers, modulators, receivers and packaging
Proven capability to ramp volume in Finisar production sites
High bandwidth optics offer superior performance and support 200G+
Two laser configuration offers greater network flexibility
WSS, OCM &
ROADM
Line cards




Leading market share in WSS revenue
Superior optical performance
10+ years experience with LCoS software programmable switching
Flexgrid® patented technology
© Finisar Corporation
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Industry’s Broadest Product Portfolio
DATACOM
TELECOM
FINISAR
Foxconn
Sumitomo/
Excelight
Lumentum
Oclaro
Oplink
Fujitsu
Source
Photonics
NeoPhotonics
Accelink
© Finisar Corporation
6
Optics Growth Drivers
Global IP Traffic (1)
250
EB/Month
Global Mobile Bandwidth (1)
22% CAGR 2015-2020
Mobile Data
Managed IP
Fixed Internet
200
150
194.2
160.5
72.3
EB/Month
26.0
132.0
108.5
100
54% CAGR 2015-2020
40
20
88.5
50
2015
2016
2017
2018
2019
80
66.2
200
50.5
2019
2020
$B
367.1
320.1
278.4
176
204.2
240
38.1
100
20
0
2015
2018
15.8% CAGR 2015-2020
300
86.7
28.7
2017
109.9
100
40
400
EB/Month
60
2016
12.6
Cloud Services (2)
31% CAGR 2015-2020
120
2015
2020
Internet Video Traffic (1)
5.1
3.0
0
0
8.3
18.4
2016
2017
2018
2019
2020
0
2015
2016
2017
2018 2019
2020
Sources (1) Cisco VNI 2016 (2) Gartner 2016
Data for 2016 and beyond are estimates only
© Finisar Corporation
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Optical Communications Market Growth Projection
($M)
2015-2020
CAGR 10%
$14,000
$12,279
$12,000
$11,123
$9,948
$10,000
$8,000
$7,767
$8,223
$8,910
$6,000
$4,000
$2,000
$2015
2016
2017
2018
2019
2020
Source: Ovum (Aug 2015)
Includes OC WAN, Datacom, and Access (excludes FTTx)
© Finisar Corporation
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Optics Market Leader with Growing Share
CY15 Total Market Share
Market Share Growth
Finisar
16%
Others
38%
Lumentum
9%
12.8% 13.3%
14.5%
15.9% 16.1%
9.2%
Source
Photonics
3%
Fujitsu Optical
Components
3%
Avago
8%
Sumitomo
6%
CY04
CY06
CY09
CY11
CY13
CY15
Accelink
5%
II-VI
4%
NeoPhotonics
4%
Source: Ovum (May 2016)
© Finisar Corporation
Oclaro
4%
#1 Market Share since 2008
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Differentiation Through Vertical Integration
Integrated Circuit Design


World-class foundries
Highest volume shipping
in the industry
Optical Package Design
Lasers and Photo Detectors
Majority of optical components are
designed and manufactured in-house
Majority of revenue contains internally
designed and manufactured optical chips
High-volume, Low Cost Manufacturing
Allen, Texas
Ipoh, Malaysia
Wuxi, China
Advantages: Cost, Quality, Technical Leadership, IP Protection
© Finisar Corporation
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Strategic Acquisitions in a Consolidating Industry
PRODUCTS
Big Bear
Networks
10 Gbps Technology
40 Gbps Technology
Jan 2005
Nov 2005
ROADM, CATV,
10-40Gbps
System on a Transceiver
for PON
Aug 2008
Sept 2010
VERTICAL INTEGRATION / TECHNOLOGY
Long wavelength FP
DFB lasers
and
Amplifier Technology
CML Technology
10-40Gbps
April 2003
for
(EDFA/Raman/Hybrid)
Jul 2012
Mar 2007
New Focus
Passive components
May 2002
Short wavelength
VCSEL lasers
Mar 2004
© Finisar Corporation
Syntune tunable lasers
May 2011
InP Receivers &
Photodetectors
Jan 2014
11
Financial Overview
© Finisar Corporation
© 2010 Finisar Corporation
12
12
Q1 FY17 Highlights
Q1 FY17 revenues of $341 million, an increase of 7.1% over Q4FY16
•
Telecom revenues increased $22.0 million, or 29.0%, over Q4
•
Datacom revenues increased $0.5 million, or 0.2%, over Q4
•
100G datacom revenues increased 21.8% over Q4
Q1 FY17 non-GAAP financial measures
•
Gross margin of 33.1% compared to 30.6% in Q4FY16
•
Operating margin of 12.8% compared to 9.8% in Q4FY16
•
Operating expenses of $69.3 million compared to $66.2 million in Q4FY16
•
Earnings per diluted share $0.38 compared to $0.29 in Q4FY16
Strong balance sheet
•
Cash and short term investments increased $31.3 million during the quarter, to
$593.8 million as of July 31, 2016
© Finisar Corporation
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Quarterly Revenue Trends
($MM)
400.0
341.3
350.0
327.6
290.7 294.0
300.0
306.3
306.0
297.0
320.0 314.0 321.1
318.8
309.2
266.1
250.0
243.4
232.0 238.3
200.0
150.0
100.0
50.0
0.0
Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117
Datacom
139.8 147.6 163.9 184.4 204.3 210.4 223.0 241.2 215.9 234.4 242.0 233.3 233.8 219.3 242.9 243.4
Telecom
92.2
90.7
79.5
81.6
86.4
83.6
83.0
86.4
81.1
71.9
78.1
80.7
87.4
89.9
75.9
97.9
Total Optics Revenue 232.0 238.3 243.4 266.1 290.7 294.0 306.0 327.6 297.0 306.3 320.0 314.0 321.1 309.2 318.8 341.3
© Finisar Corporation
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Q2 FY17 Quarterly Non-GAAP Guidance (1)
$ Millions
(except EPS)
Q1-16
Actual
Q2-17
Est.
Revenue
$341.3
$355-$375
Gross margin
33.1%
~34%
Operating
profit
$43.5
Operating
margin
12.8%
14.3%-15.3%
$0.38
$0.44-$0.50
EPS
• Financial guidance for fiscal Q2FY17 is per earnings call on September 8,
2016 and is not being updated or confirmed as of any other date.
(1) Finisar has not provided a reconciliation of its second quarter outlook for non-GAAP gross margin, non-GAAP operating margin and non-GAAP earnings per fully
diluted share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking
estimate of certain reconciling items between such non-GAAP forward-looking measures and the comparable forward-looking GAAP measures. Certain factors that are
materially significant to Finisar’s ability to estimate these items are out of its control and/or cannot be reasonably predicted, including with respect to restructuring
charges, litigation settlements and resolutions and related costs, and the timing of tax related adjustments. Accordingly, a reconciliation of such non-GAAP forwardlooking measures to the comparable forward-looking GAAP measures are not available within a reasonable range of predictability.
© Finisar Corporation
15
Finisar Corporation
 Optics industry leader with ~ $1.3B annual revenue
Market Share
 Founded in 1988
 IPO in 1999 (NASDAQ: FNSR)
 Broadest and most advanced product portfolio
 Vertically integrated with low cost manufacturing
12.8%
13.3%
14.5%
15.9%
16.1%
9.2%
 Experienced management team
 14,000 employees
 1300+ Issued U.S. patents
Corporate Headquarters: Sunnyvale, CA USA
CY04
CY06
CY09
CY11
CY13
CY15
Source: Ovum (May 2016)
© Finisar Corporation
16
World’s Largest Supplier of Optical Solutions
for the Communications Industry
© Finisar Corporation
17