& cplSiteName &

Infinera Confirms Level 3 Deal

Dan O'Shea
4/25/2014
100%
0%

Following its quarterly earnings report this week, Infinera is looking even less like a company licking its wounds after losing out on the 100G business at Verizon Communications. During the earnings call, the company reported 15% year-over-year revenue growth, and revealed it began realizing revenue from Level 3 Communications' 100G upgrade during the quarter.

"I don't think this was a surprise to anybody," said Infinera Corp. (Nasdaq: INFN) CEO Tom Fallon on the call regarding Level 3. He declined to attach a monetary value to the Level 3 business. Infinera has long been rumored to be a primary candidate for the Level 3 business, and has worked with the carrier before. But after Infinera missed out on the rumored Verizon deal, it was worth a getting some confirmation on the Level 3 deal from Infinera. (See Analyst: Infinera Loses VZ Deal to AlcaLu and Infinera: We're Fine, Thanks…)

Infinera also said its list of top customers during the quarter included a Tier 1 operator, a cable MSO, and a company described as an "Internet content provider." Infinera declined to identify the Tier 1 operator, but some analysts speculate it's CenturyLink Inc. (NYSE: CTL).

On the call, Fallon also was very upbeat about the market overall, the company's first quarter results, and near-term outlook. (See Infinera Reports Q1 Growth.)

He added that both capacity upgrades and new network build-outs -- and not always by the usual suspects -- continue to drive growth in the optical sector. "We've said for a long time that the industry is too focused on the top two Tier 1s, and not enough on other providers, including the Web 2.0 providers, which is where a lot [of] the future growth will be."

— Dan O'Shea, Managing Editor, Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
DOShea
50%
50%
DOShea,
User Rank: Blogger
5/2/2014 | 10:50:47 AM
Re: Level 3
Yes, the quote above I think answers the earlier question to some degree, though I think it was Fallon who said that, wasn't it? There were very specific this time about Level 3, not dropping hints at all, as they had previously. Of course, they didn't specify the contract value, but I believe he said the revenue woul play out over several quarters.
tojofay
50%
50%
tojofay,
User Rank: Light Sabre
4/29/2014 | 3:09:13 PM
Re: Level 3
Brad Feller - Chief Financial Officer INFN Q1 CC

"Yes. So they have been a very substantive part of our business in the past, they have been a long-term partner of ours and they now reselected to go to market with a 100 gig. That revenue started in Q1 and we anticipate it ramping over the next several years. I'm not going to quantify the size of the deal, I think they -- and appreciate that. But, if you look at level 3's business model, they drive to be the largest provider of ways in the world and provide them at the lowest dollar per bit."

 

 
SachinEE
0%
100%
SachinEE,
User Rank: Light Sabre
4/29/2014 | 2:09:01 PM
Re: Level 3
If the deal is on (and it must be considering that Infinera is still able to post such impressive figures even in the face of what most of us considered a major blow with Verizon, my question is what game are they playing really. They don't want to give the information (on their official capacities) but can't seem to stop dropping hints and rumors about the deal and its benefits! Why all this secrecy?
SachinEE
100%
0%
SachinEE,
User Rank: Light Sabre
4/29/2014 | 2:06:26 PM
Re: Future Growth right on the money
I think the real credit to Infinera should be awarded because of the company's foresight. When most companies forecast on their expected earnings, they usually factor in deals that they feel most confident about even though they may not have been formalized. Considering how rife the rumor about the Verizon deal with Infinera was, it came as a surprise to me that the deal did not fall through. And yet Infinera does not look like it even took a scratch from that blow meaning they had left room for that too.
rgrutza600
100%
0%
rgrutza600,
User Rank: Light Sabre
4/27/2014 | 9:00:40 PM
Web 2.0 companies
Google is spending almost $10 billion a year on infrastructure.  Though they were not mentioned by name, I would assume they are one of the "3 of the top 4 internet content providers" talked about.
DOShea
100%
0%
DOShea,
User Rank: Blogger
4/27/2014 | 4:47:08 PM
Level 3
Level 3 told LR last fall said it was getting close to 100G upgrade. It has never said anything more specific since, to my knowledge, but Infinera did drop some heavy hints during its Q4 earnings call that it was in on this business. What Fallon said this time around was that Infinera had gotten permission from Level 3 to talk about it, although apparently not in great detail.
thebulk
100%
0%
thebulk,
User Rank: Light Sabre
4/25/2014 | 3:30:23 PM
Future Growth right on the money
I really like the last statement about web 2.0 providers being a sizable chunk of future growth. Nice to see that shift. 
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, July 27, 1:00PM EDT
The Changing Face of the Data Center World
Rodney M. Elder, Senior Solutions Architect, Equinix
UPCOMING COURSE SCHEDULE
Wednesday, August 3, 1:00PM EDT
The Central Office Re-Architected as a Data Center
Guru Parulkar, Executive Director, Open Networking Research Center, Open Networking Lab
Wednesday, August 10, 1:00PM EDT
Telcos & Open Source 101
Phil Robb, Senior Technical Director, OpenDaylight
Friday, August 12, 1:00PM EDT
The Role of Open Source in NFV
Jim Fagan, Director, Cloud Practice, Telstra
in association with:
From The Founder
The more things change, the more they stay the same for Juniper's next-gen comms solutions, and that's a good thing.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (0) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
LRTV Custom TV
Juniper Networks & The Evolution of NFV

7|19|16   |   06:01   |   (0) comments


Senior Juniper Networks executives talk to Light Reading Founder & CEO Steve Saunders about NFV developments and the recent independent evaluation by test lab EANTC of Juniper's Cloud CPE solution.
LRTV Interviews
CenturyLink Goes Beyond Managed WiFi

7|19|16   |     |   (0) comments


CenturyLink's managed WiFi allows enterprises, such as retailers and resorts, to track guest WiFi usage in order to help them better communicate with customers.
LRTV Interviews
AT&T Launches Network Functions on Demand

7|17|16   |   05:26   |   (0) comments


Roman Pacewicz, Senior Vice President, Offer Management & Service Integration, AT&T Business Solutions, discusses the operator's launch of its Network Functions on Demand service.
LRTV Interviews
Enterprise Pitch for Ciscosson

7|14|16   |   04:43   |   (0) comments


After seven months of near silence, Cisco and Ericsson executives publicly discussed details on their extensive partnership. Among the tidbits shared by Martin Zander, VP, group strategy programs, Ericsson, and Doug Webster, VP service provider marketing, Cisco: The partnership was initially launched to serve the service provider market, but is already gaining ...
Wagner’s Ring
Cisco Faces Up to Hypercloud Threat

7|13|16   |   02:42   |   (0) comments


Facebook, Amazon and Google mostly don't buy branded technology for their networks – they build their own. That's a threat to Cisco – and its competitors too – which face potentially dwindling demand for their product. Is Cisco up to the challenge? Light Reading went to the annual Cisco Live conference to find out.
LRTV Huawei Video Resource Center
Building a Better Connected Russia

7|13|16   |     |   (0) comments


At UBBS World Tour 2016, Alla Shabelnikova of Ovum shares the findings of a white paper outlining the challenges and opportunities of broadband rollout in Russia.
LRTV Huawei Video Resource Center
The Global Video Business

7|13|16   |     |   (0) comments


At UBBS World Tour 2016, Roger Feng of Huawei shares insights on the future of video business.
LRTV Huawei Video Resource Center
UBBS World Tour Moscow Highlights

7|13|16   |     |   (0) comments


At UBBS World Tour 2016 at Moscow, Huawei showcases its outstanding progress in video technology.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
September 27, 2016, Philadelphia, PA
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
SoftBank Muscles In on ARM in $32B Deal
Iain Morris, News Editor, 7/18/2016
Ericsson 'Doubles' Savings Goal as Sales Slump
Iain Morris, News Editor, 7/19/2016
Kevin Lo's Move to Facebook: Sign of Things to Come?
Patrick Donegan, Chief Analyst, Heavy Reading, 7/20/2016
Verizon's Next With VNFs
Carol Wilson, Editor-at-large, 7/21/2016
Facebook Gets Its Drone On
Ray Le Maistre, Editor-in-chief, 7/22/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
I've enjoyed interviewing many interesting people since I rejoined Light Reading, but William A. "Bill" Owens certainly takes the biscuit, as we say where I come from.
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.