20 April 2010


Infinera grows for fourth consecutive quarter

For first-quarter 2010, 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 $95.8m, up 6% on $90.2m last quarter and up 44% on $66.6m a year ago. 

The top five customers included Level 3, two additional established carriers, and two of the world’s largest internet content providers. Level 3 and one of the leading internet content providers were 10% or greater customers (at 22% and 16% of revenue, respectively).

“Our solid first-quarter results demonstrate that market demand remains strong for Infinera’s PIC-based networks, which provide the optical industry’s most cost-effective solution and most advanced intelligent bandwidth management capabilities,” says president & CEO Tom Fallon. 

Gross margin has risen from 30% a year ago and 38% last quarter to 39%. Net loss of $20m is down from $24.3m a year ago but up from $18.7m last quarter. During the quarter, Infinera generated $2.3m of cash from operations.

“We grew revenue for the fourth consecutive quarter, improved gross margins for the third consecutive quarter, and had record bookings for the second quarter in a row,” notes Fallon.

“Against the backdrop of an improving technology spending environment, business activity is healthy across all our major markets and customer segments,” says Fallon.

Infinera’s customer count grew by five (three North American, one European and one Asian) to 74. The new Asia-based customer (one of Japan’s top three service providers) has begun Infinera deployments in both Asia and North America. “We continued to grow our footprint across an expanded set of market opportunities,” adds Fallon.  

One new ATN win this quarter raises total ATN customer count to seven (six of which are existing DTN customers).

Infinera also won expanded footprint with existing customers including a significant new opportunity with a tier-one account for a Latin American deployment, as well as an expanded relationship with another customer that will include participating in a series of large overbuilds in a global capacity expansion.

See related item:

Infinera reports 8% revenue growth to $90m, plus record bookings

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