Infinera reports fifth quarter of growth
Infinera, a provider of optical transport Networks, has released financial results for its second quarter ended June 30, 2018.
"In Q2, we delivered strong margins and our fifth consecutive quarter of revenue growth, as customers continued to adopt our next-generation products," said Tom Fallon, Infinera CEO.
"In the second half, we expect to deploy several new opportunities that will drive multi-year growth. We believe adding Coriant's capabilities and extensive customer base to our vertically integrated operating model and refreshed product portfolio, will allow us to enter 2019 in a position of strength. I really like our opportunity and am very excited for what the future holds."
GAAP revenue for the quarter was $208.2 million compared to $202.7 million in the first quarter of 2018 and $176.8 million in the second quarter of 2017.
GAAP gross margin for the quarter was 40.5 percent compared to 40.5 percent in the first quarter of 2018 and 36.7 percent in the second quarter of 2017. GAAP operating margin for the quarter was (10.4) percent compared to (12.2) percent in the first quarter of 2018 and (22.9) percent in the second quarter of 2017.
GAAP net loss for the quarter was $(21.9) million, or $(0.14) per share, compared to a net loss of $(26.3) million, or $(0.17) per share, in the first quarter of 2018, and net loss of $(42.8) million, or $(0.29) per share, in the second quarter of 2017.
Non-GAAP gross margin for the quarter was 43.9 percent compared to 43.7 percent in the first quarter of 2018 and 40.7 percent in the second quarter of 2017. Non-GAAP operating margin for the quarter was (0.7) percent compared to (3.4) percent in the first quarter of 2018 and (12.2) percent in the second quarter of 2017.
Non-GAAP net loss for the quarter was $(1.3) million, or $(0.01) per share, compared to a net loss of $(7.2) million, or $(0.05) per share, in the first quarter of 2018, and net loss of $(22.8) million, or $(0.15) per share, in the second quarter of 2017.
Financial Outlook
The company continues to expect revenue in the second half of 2018 will be 2 percent to 4 percent higher than revenue in the first half of 2018. This expectation implies a revenue range in the second half of 2018 of approximately $420 million to $430 million and full fiscal year 2018 revenue growth of approximately 13 percent compared to the prior fiscal year.
Infinera also continuse to expect to achieve non-GAAP profitability in the fourth quarter of 2018.
For the quarter ending September 29, 2018, it expects several new customer footprint deployments. We expect these new deployments will drive multi-year revenue growth and strong margins moving forward. However, as is typical with new deployments of network infrastructure, these will have lower margins initially.
Revenue is expected to be $210 million +/- $10 million. This expectation implies 9 percent year-over-year growth at the midpoint. GAAP gross margin is expected to be 35 percent +/- 200 bps. Non-GAAP gross margin is expected to be 38 percent +/- 200 bps. GAAP operating expenses are expected to be $97 million +/- $2 million. Non-GAAP operating expenses are expected to be $86 million +/- $2 million. GAAP operating margin is expected to be approximately (12) percent. Non-GAAP operating margin is expected to be approximately (3) percent. GAAP EPS is expected to be $(0.16)+/- $0.02. Non-GAAP EPS is expected to be $(0.05) +/- $0.02.
