30 January 2014

Infinera’s annual revenue rises 24%, driving return to profit

For fourth-quarter 2013, 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 $139.1m, down 2% on $142m last quarter but up 8.6% on $128.1m a year ago. Full-year revenue was $544.1m, up 24% on $438.4m in 2012.

On a non-GAAP basis, gross margin for Q4 was 41%, down from 49% last quarter of 2013 but up from 36% a year ago. Full-year gross margin has risen from 38% to 42%.

Net loss for Q4 was $0.2m (breakeven on an earnings per share basis), compared to net income of $12.8m ($0.10 per diluted share) last quarter but an improvement on net loss of $6m ($0.05 per share) a year ago. Full-year 2013 has yielded net income of $4m ($0.03 per diluted share), compared with a net loss of $43.5m ($0.38 per diluted share) in 2012. Net free cash flow for the year was $12m.

“The fourth quarter was a solid finish to a very good year for Infinera, driven by continued acceptance of the DTN-X,” says CEO Tom Fallon. “We received purchase commitments from three additional customers in the quarter, including one new to Infinera, and we set another quarterly record for 100G port shipments,” he adds.

“Our financial results for 2013 demonstrate the strong potential of the DTN-X,” believes Fallon. “Revenues grew 24%, at least double the long-haul DWDM market growth estimated by industry analysts,” he adds. Since its introduction in mid 2012, Infinera has received purchase commitments for the DTN-X from 42 customers, representing a cross section of industries including tier-1 carriers, cable operators, Internet content providers and bandwidth wholesalers. Of these, 15 are new customers. “These achievements met or exceeded the targets that we provided at our Analyst Day in December of 2012,” notes Fallon.

“As we look ahead, we believe the opportunity for the DTN-X remains wide open with the 100G cycle still in its early stages,” continues Fallon. “Infinera’s Intelligent Transport Network and the DTN-X offers important differentiated features, including its super-channel scale, converged OTN switching and GMPLS network automation,” he adds. “For 2014, we plan to continue our focus on winning new deployments and gaining market share, while driving enhanced profitability, and we remain optimistic about our outlook over the short, intermediate and long-term.”

See related items:

Infinera enters profitability on Q3 revenue up 27% year-on-year

Infinera’s Q2 revenue up 48% year-on-year

Infinera’s Q1 revenue up 19% year-on-year

Infinera grows revenue 14% in Q4 while it continues to cut losses

Tags: Infinera InP PIC

Visit: www.infinera.com