Exhibit 99.1

Avanex Corporation Announces Fiscal 2009

First Quarter Financial Results

FREMONT, Calif., November 6, 2008 — Avanex Corporation (NASDAQ: AVNX), a pioneer of intelligent photonic solutions that enable next-generation optical networks, today reported its fiscal 2009 first quarter financial results for the quarter ended September 30, 2008.

Net revenue in the first quarter of fiscal 2009 was $45.3 million, a decrease of 13 percent from $51.8 million in the fourth quarter of fiscal 2008, and a decrease of 17 percent from $54.7 million in the same period last year.

Gross margin in the first quarter of fiscal 2009 was 17%, a decrease from 31% in the fourth quarter of fiscal 2008, and a decrease from 28% in the same period last year.

Net loss in the first quarter of fiscal 2009 was $9.6 million, or ($0.63) per diluted share, compared with net income of $1.3 million, or $0.08 per diluted share in the fourth quarter of fiscal 2008. This compares to net income of $45,000 or break-even in the same period last year.

Non-GAAP net loss in the first quarter of fiscal 2009 was $5.9 million, or ($0.38) per diluted share, compared with non-GAAP net income of $1.6 million, or $0.10 per diluted share, in the fourth quarter of fiscal 2008. This compares to non-GAAP net income of $2.1 million, or $0.14 per diluted share in the same period last year.*

“The company is facing some significant challenges in light of the current macro-economic environment,” said Giovanni Barbarossa, Interim CEO of Avanex. “To better position ourselves, we moved quickly last quarter to implement a significant cost cutting plan to improve financial performance.”

Q2 FY 2009 Outlook

The company expects revenue to be between $37 million and $42 million and gross margin to be between 17 to 21 percent in the second quarter of fiscal 2009, ending December 31, 2008.

Investor Conference Call

Avanex will host a conference call to discuss fiscal 2009 first quarter results at 1:30 p.m. PST today. Investors are invited to listen to a live broadcast of the conference call via webcast, which can be accessed by visiting the Avanex Investor Relations website at http://investor.avanex.com/events.cfm. Investors can also listen to the conference call by dialing 816-581-1711 and entering access ID number 4121212.

A replay of the call will be available through an archived webcast at http://investor.avanex.com/events.cfm. An audio replay will be available through 12 AM eastern daylight time on November 13, 2008 and can be accessed by dialing 888-203-1112 (domestic) or 719-457-0820 (international) and entering access ID number 4121212.

About Avanex

Avanex Corporation is a leading global provider of Intelligent Photonic Solutions(TM) to meet the needs of fiber optic communications networks for greater capacity, longer distance transmissions, improved connectivity, higher speeds and lower costs. These solutions enable or enhance optical wavelength multiplexing, dispersion compensation, switching and routing, transmission, amplification, and include network-managed subsystems. Avanex Corporation was incorporated in 1997 and is headquartered in Fremont, California. Avanex Corporation also maintains facilities in Horseheads, New York; Shanghai, China; Villebon Sur Yvette, France; San Donato, Italy; and Bangkok, Thailand. To learn more about Avanex Corporation, visit our web site at: www.avanex.com.

Forward-looking Statements

This press release contains forward-looking statements including statements regarding expected second quarter of fiscal 2009 outlook and future operating results, competitive and market position and our strategies. Actual results could differ materially from those projected in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include general economic conditions, the pace of spending in the telecommunications industry and in particular the optical networks industry, market demand and price of our products, the company’s ability to sufficiently anticipate market needs and develop products and enhancements that achieve market acceptance, unanticipated costs and expenses or the inability to identify expenses which can be eliminated, any slowdown or deferral of orders for products or the application of accounting or tax principles in an unanticipated manner.

Finally, please refer to the risk factors contained in the company’s SEC filings including the company’s Annual Report on Form 10-K filed with the SEC on Sept. 5, 2008 and subsequent filings with the SEC.

Avanex assumes no obligation and does not intend to update any forward-looking statements, whether as a result of new information, future events or otherwise.

* Non-GAAP net income (loss) and non-GAAP net income (loss) per share exclude share-based compensation expenses, gain from legal settlement, amortization of intangibles, restructuring charges (recovery), gain (loss) on disposal of property and equipment, and arbitration expenses. Details on the

items excluded from non-GAAP net income (loss) and non-GAAP net income (loss) per share are available in the table entitled, “Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss),” following the accompanying financial statements.

Contact Information:

Investor Relations

Mark Weinswig

510 897-4188

IR@Avanex.com

Avanex Corporation

CONSOLIDATED BALANCE SHEET

In thousands

(Unaudited)

Avanex Corporation

CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP

In thousands, except for per share data

(Unaudited)

Avanex Corporation

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)

In thousands, except for per share data

(Unaudited)