News

18 October 2010

 

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

For third-quarter 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), reported revenue of $130.1m, up on $111.4m last quarter and up 56% on $83.4m a year ago (and representing the sixth consecutive quarter of improving revenue). 

On a non-GAAP basis (excluding restructuring and other related costs and non-cash stock-based compensation), gross margin has risen from 38% a year ago and 44% last quarter to 51% (the fifth quarter of improving gross margin).

“We achieved new records for quarterly revenue, gross margin and tributary adapter module (TAM) shipments [more than 3000 units],” says president & CEO Tom Fallon. “The stronger revenue, higher profit margins and ongoing operating expense control resulted in significant income leverage, with a non-GAAP operating income contribution of $18.5m,” he adds. “This operating income contribution, combined with our achievement of 51% gross margin, validates our long-term business model and demonstrates the leverage that is achievable.”

Non-GAAP net income was $18.7m, compared to $3m last quarter and a net loss of $3.1m a year ago. Positive cash from operations was $10m.

“Our continued solid financial performance stems from our customers’ confidence in Infinera’s unique and differentiated PIC-based networks and our expanded product portfolio that provides the end-to-end solutions that they are demanding,” believes Fallon.

The company also noted the following developments, both during the third quarter and since:

• the addition of two new invoiced customers (bringing the customer roster to 77);

• the addition of six new ATN metro customers (bringing total ATN customers to 15);

• the launch of new hardware and software products for the DTN and ATN platforms enabling a new end-to-end 'Digital OTN' solution; and

- two technical demonstrations, including PIC-based 100Gb/s coherent transmission and reception over a 1348km route on an XO Communications nationwide network on a production Infinera line system, and 100 Gigabit Ethernet services over Colt’s existing London to Frankfurt Infinera network.

Midcontinent deploys Infinera network for Upper Midwest

Midcontinent Communications has deployed an Infinera Digital Optical Network for its cable television, high-speed Internet and telecom customers in its Upper Midwest service area.

Midcontinent is one of the USA’s largest independent cable companies, with more than 250,000 customers in North Dakota, South Dakota, and Minnesota. It operates the largest and most resilient network in the region, a 4600 fiber-mile network delivering services to urban and rural areas within the three states.

The firm has been experiencing rapid growth in traffic on its network due to a growing offering of high-definition TV channels, accelerating demand for Internet bandwidth, the move to IP technology for carrying TV services between head-ends, and a growing enterprise business. Midcontinent deployed the Infinera DTN digital ROADM (reconfigurable optical add-drop multiplexer) after examining a range of alternatives for bringing additional capacity to its optical network. With the new network, Infinera says that Midcontinent can turn up services, including Gigabit Ethernet, 10Gb/s, and other services, quickly and easily. With Infinera’s unique Bandwidth Virtualization capability, optical capacity can be deployed between any points on the network to carry a wide range of services, as and when needed.

“With our Internet traffic growing at 80% year-on-year and enterprise customers requesting services up to 10Gb/s, we could not afford to take months to add capacity,” says Midcontinent’s VP of technology Jon Pederson. “The Infinera system enables us to fulfill demands quickly and easily,” he adds.

The Infinera DTN is the first optical networking system powered by large-scale PICs. Deployed worldwide in long-haul and metro core networks, it combines high-capacity DWDM transport, integrated digital bandwidth management, and GMPLS-powered service intelligence in a single platform.

See related items:

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

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

Infinera grows for fourth consecutive quarter

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