Infinera: year-on-year growth but losses increase
Next generation InP-based 1.6 Tb/s optical engine still on track for delivery this year
Infinera, optoelectronics and networking equipment firm, has released financial results for its first quarter ended March 28, 2020. GAAP revenue for the quarter was $330.3 million compared to $384.6 million in Q4 2019 and $292.7 million in Q3 2019.
GAAP gross margin for the quarter was 23.3 percent compared to 29.0 percent in Q4 2019 and 22.7 percent in Q3 2019. GAAP operating margin for the quarter was (23.3) percent compared to (15.8) percent in Q4 2019 and (38.2) percent in Q3 2019.
GAAP net loss for the quarter was $(99.3) million, or $(0.55) per share, compared to $(66.6) million, or $(0.37) per share, in Q4 2019, and $(121.6) million, or $(0.69) per share, in Q3 2019.
“While facing impacts associated with the COVID-19 pandemic, we continued to service our customers and deliver year-over-year growth in revenue and orders during the quarter,” said Tom Fallon, Infinera CEO. “While the macro-economic environment creates visibility challenges for the second half of the year, we are on track for ICE6 delivery this year and remain very optimistic about the opportunity we see for Infinera in the medium and long term, driven by our truly differentiated performance in the fast-growing high-capacity optical market.”
ICE6 is a 1.6 Tb/s optical engine that contains a highly integrated InP photonic integrated circuit (PIC) and high-performance electronics to delivers two wavelengths at up to 800G each in a compact digital coherent module that can be integrated into multiple Infinera platforms.
Non-GAAP revenue for the quarter was $331.4 million compared to $386.5 million in Q4 2019 and $295.6 million in Q3 2019.
Non-GAAP gross margin for the quarter was 28.3 percent compared to 35.2 percent in Q4 2019 and 35.3 percent in Q3 2019. Non-GAAP operating margin for the quarter was (9.4) percent compared to 2.3 percent in Q4 2019 and (11.9) percent in Q3 2019.
Non-GAAP net loss for the quarter was $(49.4) million, or $(0.27) per share, compared to a net income of $6.4 million, or $0.03 per share, in Q4 2019, and net loss of $(41.2) million, or $(0.23) per share, in Q3 2019.
Outlook
Infinera's outlook for the quarter ending June 27, 2020 is as follows:
GAAP revenue is expected to be $319 million +/- $10 million. Non-GAAP revenue is expected to be $320 million +/- $10 million.
GAAP gross margin is expected to be 29 percent +/- 200 bps. Non-GAAP gross margin is expected to be 33 percent +/- 200 bps.
GAAP operating expenses are expected to be $142 million +/- $2 million. Non-GAAP operating expenses are expected to be $122 million +/- $2 million.
GAAP operating margin is expected to be approximately (15.5) percent +/- 300 bps. Non-GAAP operating margin is expected to be approximately (4) percent +/- 300 bps.
