News

23 April 2009

 

Infinera’s revenue falls 23%, but gains two tier-one European customers

For first-quarter 2009, Infinera Corp of Sunnyvale, CA, USA, a vertically integrated manufacturer of digital optical network systems incorporating its own indium phosphide-based photonic integrated circuits (PICs), has reported revenue of $66.6m. This is down 23% from $86.2m on an adjusted GAAP basis last quarter and down 30% from $95.5m on an invoiced shipment basis a year ago.

On a non-GAAP basis (excluding non-cash stock-based compensation), gross margin was 31%, down from 36% last quarter and 45% a year ago.

Non-GAAP net loss was $17.6m compared to $9m last quarter and net income of $12.6m a year ago. During the quarter, cash and cash equivalents fell from $166.8m to $153.4m.

“The combination of macroeconomic effects and timing associated with some large deployments put downward pressure on our revenue and gross margins for the first quarter,” says president & CEO Jagdeep Singh. “However, we saw continued momentum with tier-one carriers, as Infinera was selected by two additional European PTTs [postal, telegraph and telephone carriers],” he adds.

“In addition, we continue to experience a robust level of DWDM [dense wavelength division multiplexing] activity with carriers worldwide, and see additional evidence that our unique PIC-based value proposition is resonating with existing customers and prospects,” says Singh. Enabled by its new ILS2 line system, in Q1/2009 the firm also won new deals including submarine network routes (an important growth segment in DWDM).

“We believe that we are well-positioned to resume top-line growth and improved bottom-line performance as the macroeconomic environment improves,” concludes Singh.

See related items:

Infinera makes quarterly loss but adds seven new customers

Infinera’s invoiced revenue falls 11%

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