News Article
Infinera revenues to drop 5-15% due to Thailand floods
Factors affecting the size of the loss include the firm’s ability to move production to other locations, incrementally increase production at other facilities, and utilise existing inventory to meet customers' needs.
Infinera has announced that flooding in Thailand is impacting the operations of component and service suppliers to the optical industry. Fabrinet, one of Infinera's contract manufacturers, reported this week a significant escalation of the impact of the flooding on its facilities in Thailand.
"Our thoughts and prayers are with our partners and their families in Thailand as they deal with this disaster," said Tom Fallon, CEO of Infinera.
Infinera is executing business continuity contingency plans using existing inventory and moving to alternate contract manufacturers and second sources. However it will probably not be possible to transition all components and subsystems quickly enough to avoid some supply chain disruption. Infinera's priority is to invest the necessary resources to minimise the number of customers affected and to limit any impact on their operations.
Infinera is still assessing the full extent of the impact on its financial results for the current and future quarters. Based on the information available at this time, Infinera currently estimates the potential negative impact to its December quarter guidance to be in the range of 5-15% of revenues.
Factors affecting the size of the revenue loss include, but are not limited to, Infinera's ability to move production to other locations, incrementally increase production at other facilities, and utilise existing inventory to meet customers' needs.
Additional factors that may affect the size of the revenue loss include the level of demand from customers for the affected products, the level of competition for alternative sources for relevant components and the ultimate extent of the damage caused by the flooding.
