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Infinera files for IPO worth up to $150 m

Infinera files for an initial public offering worth up to $150 million and discloses that it has made a $89.1 million loss in 2006.

Infinera, the vertically-integrated manufacturer of InP photonic circuits and digital network systems, has filed for an initial public offering (IPO) that could generate up to $150 million.

The company will use the cash for working capital, financing growth and developing new products, according to a S-1 Registration Statement filed with the Securities and Exchange Commission.

This document also reveals Infinera's finances. The company is running at substantial loss, but sales are growing rapidly.

Annual revenue has increased from $0.6 million in 2004 to $4.1 million in 2005 and $58.7 million in 2006, with $44.3 million coming in the final quarter.

However, annual losses for these three years were $66.4 million, $64.6 million, and $89.1 million, which has contributed to the company's total accumulated deficit. This stood at $313.1 million on 31 December, 2006.

Research and development costs are a significant contributor to this debt, and consumed $179 million between 2002 and 2006.

The filing also revealed that Infinera's biggest customer is Level 3 Communications, that the company has over 600 employees, and that it was sued by Cheetah Omni in 2006.

Cheetah claims that Infinera has infringed its US patents 6,795,605 ("Micromechanical optical switch") and 7,142,347 ("Method and system for processing photonic systems using semiconductor devices"). Infinera believes that these claims are without merit, and says that it will defend itself vigorously.

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