Infinera revenues decrease, loss increases in first quarter 2011

Infinera Corp. (NASDAQ: INFN) reports that GAAP revenues for its fiscal first quarter ended March 26, 2011 were less than those of the previous quarter and the year-ago quarter. The optical systems company also reported a greater GAAP loss and lower gross margins than the previous quarter, but improvements in these areas year on year.

Infinera Corp. (NASDAQ: INFN) reports that GAAP revenues for its fiscal first quarter ended March 26, 2011 were less than those of the previous quarter and the year-ago quarter. The optical systems company also reported a greater GAAP loss and lower gross margins than the previous quarter, but improvements in these areas year on year.

The company said revenues for the first quarter of 2011 were $92.9 million, versus $117.1 million in the fourth quarter of 2010 and $95.8 million in the first quarter of 2010. The news on GAAP gross margins was only slightly better. First quarter 2011 GAAP gross margin came in at 46%, compared to 49% in the fourth quarter of 2010. However, that figure was better than the 39% registered in the first quarter of 2010.

Overall, GAAP net loss for the quarter was $16.4 million, or $(0.16) per share, compared to net loss of $2.7 million, or $(0.03) per share, in the fourth quarter of 2010. However, the company improved over the net loss of $20.0 million, or $(0.21) per share, in the first quarter of 2010.

Non-GAAP gross margins for the first quarter of 2011 were 48% compared to 51% in the fourth quarter of 2010 and 41% in the first quarter of 2010, excluding restructuring and other related costs and non-cash stock-based compensation expenses. Non-GAAP net loss for the first quarter of 2011 was $4.0 million, or $(0.04) per share, compared to net income of $7.6 million, or $0.07 per diluted share, in the fourth quarter of 2010 and net loss of $7.0 million, or $(0.07) per share, in the first quarter of 2010.

As the first quarter of the calendar year frequently suffers in comparison to that of the end of the previous year, when customers rush to empty their budgets, Infinera President and CEO Tom Fallon saw good news in the first quarter performance.

“Our first quarter results were achieved based on continuing demand for our product portfolio from our existing customers, which reflects continuing steady growth in end-user demand for bandwidth, but we saw slower new footprint activity in Q1 versus a year ago,” Fallon said. “Customers continue to show strong interest in our photonic integrated circuit technology and in the field trial demonstrations of the differentiated features of our upcoming new products—our 40G transmission solution with FlexCoherent technology and our next-generation 500-Gbps PIC solution, which will support 100G transmission applications.

“It is also important to note that we are growing the number of customers who are buying a multi-product Infinera solution. This includes customers buying either a combination of long-haul and metro solutions or a combination of terrestrial and subsea solutions. At the end of Q1, we had 26 multi-platform customers out of a total of 86 customers worldwide. This is an important trend as these customers have made a more significant architectural commitment to Infinera.

“Finally, we continue to build additional features and capabilities into our ATN metro platform, and in the second quarter we will add Ethernet aggregation functionality,” Fallon concluded.

Visit Infinera

More in Business