28 January 2010


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

For full-year 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 $309.1m (down 12.5% on 2008’s $353.4m). However, fourth-quarter 2009 revenue was $90.2m, up 8% on $83.4m last quarter (as the recovery continues from Q2/2009’s low of $68.9m) and up 5% on $86.2m a year ago (on an adjusted GAAP basis).

On a non-GAAP basis (excluding restructuring costs of $3.3m in Q3 and $0.5m in Q4 related to consolidating the Maryland-based fab into the main fab in Sunnyvale), gross margin was 40%. This is up from 38% last quarter (and Q2/2009’s low of 31%) and above 36% a year ago.

Non-GAAP net loss has more than doubled from $3.1m last quarter to $6.5m, although this is still better than Q2/2009’s $18.2m and $9m a year ago. This contributed to full-year 2009 net loss of $45.4m, compared to net income of $14.3m in 2008. Cash and cash equivalents fell from $167m to $110m during 2009.

“We are pleased with the continuation of our sequential growth in revenues and gross margins in the fourth quarter as well as our record bookings for the quarter and year, reflecting our success in expanding our customer footprint throughout fiscal year 2009,” says president & CEO Tom Fallon.

“In the fourth quarter, we invoiced our highest level of tributary adapter modules (TAMs) in six quarters and saw continued strength in our common equipment sales,” he adds.

During the quarter, three new customers raised Infinera’s customer count to 69. New customers include Tiscali (one of Italy’s leading telecoms firms), which selected both Infinera’s DTN and ATN systems for its nationwide Italian backbone and metro networks. Also, Infinera shipped equipment for a nationwide build-out for an unnamed leading Internet content provider that was Infinera’s top customer in Q4/2009 (after receiving initial orders only in Q3/2009). The other large Q4 customer was Level 3, which contributed 12% of revenues (up from slightly less than 10% in Q3). The top five customers included two of the world's largest Internet content providers and two established European customers, as well as Level 3. Also, in addition to previously announced submarine network wins in the Americas with Global Crossing and Telefonica, Infinera recently won a 6000km trans-Atlantic submarine route with an existing customer.

“We are seeing good opportunities with both current and prospective customers across all served markets,” notes Fallon. “The market continues to embrace Infinera’s disruptive PIC-based approach of providing the best, most cost-effective and most flexible optical networks to address their bandwidth needs—both with our existing products and the new products on our roadmap,” he continues. “To meet these needs, we are committed to continuing to invest in technologies and products that will advance Infinera’s technology leadership position across our expanded addressable markets of submarine, ultra-long haul, long haul, metro core, and metro edge.”

*Infinera says that, in June, Ita Brennan (VP, finance and corporate controller) will succeed Duston M. Williams (chief financial officer since June 2006). “Since before our initial public offering, Duston has helped Infinera through a critical stage in its history as a company, building an outstanding finance group and overseeing the development of an outstanding balance sheet,” says executive chairman Jagdeep Singh.

“I have accomplished much of what I set out to do at Infinera — prepared and helped take the company public, built a strong balance sheet and created a strong finance organization that is tightly integrated and highly respected company-wide and within the optical transport industry,” says Williams. “A key part of that effort has been the development of Ita Brennan as the next leader of the finance team. Ita and I have worked together closely for the last five years at two public companies.”

Brennan has held an increasing set of responsibilities in the finance organization since joining Infinera four years ago from multi-billion dollar disk drive maker Maxtor Corp, where she served in senior financial and operations capacities in the USA and Europe. Prior to Maxtor, Brennan was at Informix Software Ireland Corp. She began her finance and accounting career at Deloitte & Touche.

“I am very excited about having the opportunity to lead the Infinera finance team at this juncture in the company’s development,” said Brennan. “We have recruited a world-class team, built a company with a unique long-term business model, and I am looking forward to helping to manage our growth and development in the next several years.”

“We are delighted to have an executive of Ita Brennan’s caliber and experience to lead our finance organization during our next stages of development and growth,” says president & CEO Tom Fallon.

See related items:

Infinera revenue rebounds by 21% to $83.4m

Infinera’s revenues rebound slightly as non-US customers grow

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

Infinera makes quarterly loss but adds seven new customers

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