22 July 2010


Infinera reports 62% year-on-year revenue growth to record $111.4m in Q2

For second-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 record revenue of $111.4m, up 16% on $95.8m last quarter and up 62% on $68.9m a year ago. The four greater-than-10% customers included one of the world’s leading Internet content providers as the top customer, two wholesale carriers (Level 3 and Global Crossing), and one of the largest cable companies in North America.

This represents the fifth consecutive quarter of improving revenue, the third of increased bookings, and the fourth of improving gross margins.

On a non-GAAP basis (excluding restructuring and other related costs and non-cash stock-based compensation), gross margin has risen from 31% a year ago and 41% last quarter to 44%. 

The quarter was one of the strongest in the firm’s history, according to president & CEO Tom Fallon. “We achieved new records for overall quarterly revenue and bookings, including increased shipments of tributary adapter modules [to 2400 TAMs], and we posted higher gross margins, achieved positive cash flow, and earned a profit on a non-GAAP basis,” he adds. Compared to net loss of $18.2m a year ago and $7m last quarter, non-GAAP net income was $3m.

“Demand remains robust for our PIC-based networks, which we believe provide the most efficient, flexible and cost-effective way to manage Internet bandwidth growth,” says Fallon. “Furthermore, we have been pleased with the broad-based positive customer reception that we have received to our recently announced plans to accelerate our PIC-based, 100G transmission system development with planned volume production in 2012,” he adds.

“Our financial results and industry data provide clear evidence that Infinera is gaining share in both North America and on a worldwide basis and doing so in a rapidly growing market for long-haul DWDM networks,” Fallon concludes. On the basis of market data from Dell’Oro Group, as of the end of Q1/2010 Infinera has strengthened its DWDM market share positions both in North America (number 1, at 39%) and worldwide (number 2, at 15%). 

See related items:

Infinera grabs second position in global long-haul optical networking market

Infinera grows for fourth consecutive quarter

Infinera appoints Milbury to board

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