News Article

$26m Loss Fails To Daunt Infinera

Despite a widening loss, the photonic integrated chip company is undiscouraged from touting its technology as a unique way to support the exponential growth of internet traffic.

In its first quarter as a publicly listed company, Infinera recorded revenues of $58.4 million for what CEO Jagdeep Singh calls its “contrarian approach" to optical communications.

According to formal accounting rules this delivered the Sunnyvale, California system maker a net loss of $26.1 million for the quarter ended June 30, compared with revenues and loss of $49.2 million and $19.8 million in the previous quarter.

However, by applying a different accounting method that Singh feels is more appropriate, and by excluding stock compensation expense presumably resulting from June's IPO, Infinera showed a profit of $2.7 million.

Now that it is obliged to talk publicly about its finances, Infinera is happy to reveal historic results for the sake of comparison, and use them to back up its positive outlook.

In particular, gross margins have improved dramatically over the past 18 months, as the company has ramped up production of systems relying on its InP-based photonic integrated circuits.

From its current position, providing one third of the world s 10 Gb/s ports (according to Infinera s own figures), Singh sketched out a future where Infinera s telecoms customers will be doubling their network capacity each year, allowing the company to grow 25 percent annually.

Whether or not this vision "“ which sounds like a throwback to the dotcom heyday of 1999 "“ is realized, Infinera continues to win new business, displacing incumbents in every case, according to Singh.

One deal, announced on the same day as its financial results, will provide a new 12,000 mile network for Cox Communications, the third largest cable provider in the US, and means Infinera has business with three of the top five US cable companies.

Another newly-signed deal effectively trebles the capacity of XO Communications, a US-based business carrier with whom Infinera is already working on an 18,000 mile network "“ more evidence, if it were needed, that the unconventional approach of Singh et al is winning customers round to their way of thinking.

CS International to return to Brussels – bigger and better than ever!

The leading global compound semiconductor conference and exhibition will once again bring together key players from across the value chain for two-days of strategic technical sessions, dynamic talks and unrivalled networking opportunities.

Join us face-to-face between 28th – 29th June 2022

  • View the agenda.
  • 3 for the price of 1. Register your place and gain complementary access to TWO FURTHER industry leading conferences: PIC International and SSI International.
  • Email  or call +44 (0)24 7671 8970 for more details.

*90% of exhibition space has gone - book your booth before it’s too late!


Search the news archive

To close this popup you can press escape or click the close icon.
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.

Please subscribe me to:


You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in:
Live Event