6 February 2012

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

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 $404.9m for 2011, down 11% on 2010’s $454.4m. In particular, fourth-quarter revenue was $112m. This was down 4.4% on $117.1m a year ago but up 7.7% on $104m last quarter.


“We benefitted from unanticipated year-end budget spending by a number of customers and were able to execute to our disaster recovery process following the historic flooding in Thailand,” says president & CEO Tom Fallon. On 22 October, flood waters infiltrated the facilities of Thailand-based contract manufacturer Fabrinet Co Ltd. At that time, Infinera estimated the potential negative impact to its December-quarter to be 5–15% of revenue.

“Our fourth-quarter revenue performance was higher than our expectations, and reflects continued solid demand from customers for Infinera’s unique digital optical networks including cable, tier-1 and bandwidth wholesale service providers,” says Fallon.

The top five customers included two cable companies (one in excess of 10% of total revenue) and — for the second consecutive quarter — a tier-1 customer. Also during the quarter, Infinera achieved its first 40G revenue, addressing demand from key customers. Infinera also added five new customers (making a total of 16 during 2011 and 98 overall, including 36 network customers to date who have purchased multiple products across multiple applications).

On a non-GAAP basis (excluding non-cash stock-based compensation expenses and restructuring and other related costs), gross margin was 42%, down on 51% a year ago but up slightly from 41% last quarter. This took gross margin for the year to 43%, down from 2010’s 47%.

Compared with net income of $7.6m a year ago, net loss has been cut from $9.2m last quarter to $6.7m. Full-year net loss was $31.7m, compared with net income of $22.4m in 2010.

Development of the DTN-X multi-terabit packet-optical transport (P-OTN) network platform (launched last September) remains on track, with trials in Q1, expected volume production starting in Q2, and initial revenue recognition expected for second-half 2012. Four lab trials with tier-1 carriers have been scheduled in Q1/2012, and the firm is in the process of preparing for the production ramp.

“Customer interest in our new DTN-X since its launch has been very strong,” says Fallon. “We believe this interest is in recognition of the unique advantage that Infinera’s integrated platform brings to market – the only platform offering integrated DWDM and OTN switching functionality without compromise,” he claims.

See related items:

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%

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

Tags: Infinera

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