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Infinera ‘s Record Revenue Causes Share Price To Jump By 20%

With revenues of $111.4 million for Q2, this represents 62% year-over-year revenue growth; increased largely due to tributary adapter modules.

 

Infinera Corporation, a global provider of digital optical communications systems, today released financial results for the second quarter ended June 26, 2010.

Since the announcement, the share price has jumped by over 20% to a current high, at the time of publication, of $8.59 at 10.40am EDT.

On a GAAP basis, revenues for the quarter were $111.4 million compared to $95.8 million in the first quarter of 2010 and $68.9 million in the second quarter of 2009.  The gross margins for the quarter were 42% compared to 39% in the first quarter of 2010 and 29% in the second quarter of 2009.

The GAAP net loss for the quarter was $9.6 million, or $(0.10) per share, compared to $20.0 million, or $(0.21) per share, in the first quarter of 2010 and $27.1 million, or $(0.28) per share, in the second quarter of 2009.

“I am delighted with the performance delivered by the Infinera team in the second quarter-- one of the strongest in the company’s history,” said Tom Fallon, president and CEO. “We achieved new records for overall quarterly revenue and bookings, including increased shipments of tributary adapter modules, and we posted higher gross margins, achieved positive cash flow, and earned a profit on a non-GAAP basis.

“The second quarter represents the company’s fifth consecutive quarter of improving revenue, our third straight quarter of increasing bookings and our fourth quarter of sequentially improving gross margins,” Fallon noted. “Demand remains robust for our PIC-based networks, which we believe provide the most efficient, flexible and cost-effective way to manage Internet bandwidth growth. Furthermore, we have been pleased with the broad-based positive customer reception that we have received to our recently announced plans to accelerate our PIC-based, 100-G transmission system development with planned volume production in 2012.”

 “Our financial results and industry data provide clear evidence that Infinera is gaining share in both North America and on a worldwide basis and doing so in a rapidly growing market for long-haul DWDM networks,” concluded Fallon.

The company summarized the following developments in the second quarter as follows:

    * Positive cash from operations of $11.2 million;

    * TAM Shipments of 2,400 units;

    * Strengthened DWDM market share positions in North America (#1 at 39%) and worldwide (#2 at 15%) based on Dell’Oro market data as of end of Q1 CY2010; and

    * Four greater than 10 % customers including one of the world’s leading internet content providers as the top customer, two wholesale carriers, Level 3 and Global Crossing, and one of the largest cable companies in North America.

 

Infinera yesterday hosted a conference call and webcast for analysts and investors to discuss its second quarter results and third quarter outlook.

An archived version of the webcast will be available on the website for 90 days.

To hear the replay, parties in the United States and Canada should call

1-866-435-5408  

International parties can access the replay at

1-203-369-1028

Infinera provides Digital Optical Networking systems and other products many of which are indium phosphide (InP) based, to telecommunications carriers worldwide. 
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