Finisar Corporation FNSR reported healthy first-quarter fiscal 2019 results (ended Jul 29, 2018), wherein both the top line and the bottom line beat the respective Zacks Consensus Estimate.Net LossOn a GAAP basis, net loss for the reported quarter was $18.5 million or loss of 16 cents per share against net income of $19.9 million or 17 cents per share in the year-ago quarter. This was primarily due to lower revenues and higher total operating expenses.Excluding non-recurring items, non-GAAP net income declined to $21.3 million or 18 cents per share from $45.8 million or 40 cents per share in the prior-year quarter. Non-GAAP earnings per share, however, beat the Zacks Consensus Estimate by 6 cents. Finisar Corporation Price, Consensus and EPS Surprise Finisar Corporation Price, Consensus and EPS Surprise | Finisar Corporation QuoteRevenuesQuarterly overall revenues decreased 7.2% year over year to $317.3 million primarily due to lower datacom revenues. The top line, however, surpassed the Zacks Consensus Estimate of $316 million.Revenues from datacom and sensing products were $238.1 million, witnessing lower demand for 40-gig transceivers. Sales of telecom products were $78.2 million, recording a rise in demand for wavelength selective switches driven by carrier deployments in India and China.Other Quarter DetailsCost of revenues was $236.2 million compared with $225.9 million in the year-ago quarter. In the fiscal first quarter, gross profit was $80.7 million compared with $115.3 million in the year-ago quarter with margin of 25.4% and 33.7%, respectively. Finisar reported an operating loss of $15.7 million against an income of $29.9 million in the prior-year quarter.In the fiscal first quarter, the company’s capital expenditures were approximately $112.7 million of which approximately $4 million was related to the construction of the third building of Wuxi manufacturing site and approximately $97 million related to the uplift of the building in Sherman, TX and delivery of capital equipment for that site.LiquidityAs of Jul 29, 2018, Finisar had $326.2 million of cash and cash equivalents with $505.7 million of total long-term liabilities.Fiscal Q2 OutlookFinisar expects revenues between $315 million and $335 million in the second quarter of fiscal 2019. It anticipates non-GAAP gross margin to be approximately 28% and non-GAAP operating margin to be around 7-8%. Non-GAAP earnings per share are expected to be in the range of approximately 19-25 cents.For the fiscal second quarter, for the Sherman facility, the company expects approximately $35 million in capital expenditures for the uplift of the building and additional equipment. It also expects an additional $28 million in other capital expenditures, including $3 million related to the construction and fit out of the third Wuxi building.Zacks Rank & Stocks to ConsiderFinisar currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader industry include Ciena Corporation CIEN, United States Cellular Corporation USM and AT&T Inc. T, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Ciena has a long-term earnings growth expectation of 15.3%. It surpassed earnings estimates twice in the trailing four quarters with an average positive surprise of 7.7%. United States Cellular has a long-term earnings growth expectation of 1%. It surpassed earnings estimates thrice in the trailing four quarters with an average positive surprise of 303.6%. AT&T has a long-term earnings growth expectation of 3.6%. It surpassed earnings estimates twice in the trailing four quarters with an average positive surprise of 5.9%. More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.Click here for the 6 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AT&T Inc. (T): Free Stock Analysis Report Ciena Corporation (CIEN): Free Stock Analysis Report Finisar Corporation (FNSR): Free Stock Analysis Report United States Cellular Corporation (USM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research