30 April 2012

Infinera’s losses grow as revenue falls 6.5% in Q1

For first-quarter 2012, 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 $104.7m, down 6.5% on $112m last quarter but up 12.7% on $92.9m a year ago.

An internet content provider was the sole greater-than-10% customer, while three wholesale carriers and one cable company completed the top five customers. The firm also added four new customers for its DTN platform. In addition, Telstra International became the first announced DTN 40G customer. Q1 also saw the start of the Telcordia OSMINE certification process to satisfy a North American tier-1 carrier request.

“Activity in our first quarter reflected demand from our customers for both our existing and next-generation platforms,” says president & CEO Tom Fallon.

On a non-GAAP basis, gross margin has fallen further, from 48% a year ago and 42% last quarter to 40%. Net loss has risen from $4m a year ago and $6.7m last quarter to $11.2m.

“Our new 500G PIC-based DTN-X platform, with super-channels and integrated OTN (optical transport network) switching, is generating strong interest among potential and existing customers, who now have a choice between our DTN and DTN-X,” says Fallon. “As planned, we are on track to ship the new platform by the end of the June quarter and to begin revenue recognition in the second half of this calendar year,” he adds.

“We are pleased to have announced our first DTN-X win, with Cable&Wireless Worldwide, a new tier-1UK-based customer,” says Fallon. “In total, we have received DTN-X purchase orders from four customers, including Cable&Wireless and three existing customers,” he adds. “We are very pleased with the early traction with this new product, as we believe this is the first step toward our ushering in a new era in network optical infrastructure.”

See related items:

Infinera’s revenue rebounds 7.7% in Q4/2011 despite Thailand flooding

Infinera cuts loss as Q3 revenue rebounds by 8% on Q2

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

Infinera’s quarterly revenue falls 20.7%

Tags: Infinera

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