28 January 2011

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

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 $454.4m for 2010, up 47% on $309.1m in 2009. However, this included revenue of $117.1m for the fourth quarter, up 30% on $90.2m a year ago but down 10% on $130.1m on the prior quarter.

Nevertheless, on a non-GAAP basis, quarterly gross margin of 51% was level with the prior quarter and up from 40% a year ago. Gross margin for the year rose from 2009’s 36% to 47%.

Quarterly net income was $7.6m, down from $18.7m the prior quarter but compared with a net loss of $6.5m a year ago. Net income for the year was $22., compared to a net loss of $45.4m in 2009.

“2010 was a year of strong growth in bandwidth demand worldwide, and our customers saw growth in their networks, driven by a number of applications, notably video, mobility, and cloud computing,” says president & CEO Tom Fallon. “We have been able to participate in this growth, showing strong year-over-year performance in revenues and market share, improved profitability and progress toward achieving our long-term business model,” he adds. “Service providers continue to look for ways to improve the economic performance of their networks through both efficiency and rapid response to their revenue-creating opportunities. With our digital optical architecture, we enable them to do so with the unique combination of world-class optics and digital network intelligence,” he continues.

“In fiscal 2011, we will continue to focus on meeting the needs of our customers and on addressing market expansion opportunities,” says Fallon. “In addition, we will focus on expense management, while at the same time ensuring that we invest appropriately to enable the successful launch of our PIC-based 100G product in 2012,” he adds. “We remain on track to ship our differentiated 40G solution with FlexCoherent technology for our current DTN networks later this year. In the meantime, we will meet customer needs today with what we believe is the industry’s most cost-effective and flexible portfolio of network solutions — our differentiated PIC-based DTN network and our ATN metro solution,” Fallon concludes.

See related items:

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

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

Infinera grows for fourth consecutive quarter

Tags: Infinera

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