20 July 2011

Infinera’s Q2 revenue rebounds but losses rise during new product development

For second-quarter 2011, 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 $96m, up 3% on $92.9m last quarter but down 13.8% on $111.4m a year ago. 

“We are encouraged by our second quarter performance, including an improvement in bookings momentum,” says president & CEO Tom Fallon. “We saw a continuation of healthy tributary adapter module purchases by a broad base of customers looking to meet their current bandwidth growth needs,” he adds. “The MSO space — which we placed a strategic focus on several years ago — was especially strong, with two customers from that category in our top 5 customer count. In addition, we saw growth in new optical capacity deployments by our customers, establishing a base for future TAM purchases.”

Nevertheless, on a non-GAAP basis (excluding restructuring and other related costs and non-cash stock-based compensation expenses), gross margin was 41%, down from 48% last quarter and 44% a year ago. Net loss has risen to $11.7m, compared with $4m last quarter and net income of $3m a year ago.

“On the new product front, we made excellent progress in the development of our next-generation 500Gbs/s PIC solution, which will support 100G transmissions and on our 40G product with FlexCoherent technology,” says Fallon. “During this period of significant product development investment and transition to new products, we remain focused on delivering on our PIC-based digital optical strategy and product roadmap in order to generate the revenue growth necessary to achieve our long-term business model objectives,” he adds.

See related items:

Infinera’s quarterly revenue falls 20.7%

Infinera’s revenue dips 10% in Q4, but still up 30% year-on-year

Infinera reports revenue up 56% year-on-year to $130.1m in Q3

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

Tags: Infinera

Visit: www.infinera.com