Light Reading
Infinera, reporting first quarter earnings Wednesday, is likely to face questions about its 100G metro market plans.

Infinera Earnings & Metro Expectations on Tap

Dan O'Shea
4/22/2014
50%
50%

Is Infinera ready to tackle a 100G metro market that at least one other vendor says is already ramping up? That is likely to be one of the questions that comes up as the optical vendor conducts its first-quarter earnings call Wednesday afternoon.

Infinera Corp. (Nasdaq: INFN) has been at work on a version of its PIC for the metro market. Although it has been vague about where a metro product may stand, Infinera CEO Tom Fallon likely will be pressed on Wednesday's call for details about the company's plans for a metro version of its DTN platform.

Infinera has taken a decidedly glass-half-full view of the 100G market, saying that, despite much contract activity in the last year, it is not expected to peak for another few years. That suggests the metro 100G market remains in an even more nascent state. However, Ciena Corp. (NYSE: CIEN) has said that the metro market for 100G already is ramping up this year (See Infinera: We're Fine, Thanks…, Infinera Shifts Up a Gear, and Ciena Fans 100G Metro Flames.)

Infinera is coming off a fourth quarter in which it reported decent earnings, but during which it became apparent that it had missed out on a major 100G contract from Verizon Communications, which went with Alcatel-Lucent (NYSE: ALU) instead. Earlier in the first quarter, Infinera was able to report some better contract news with a win at Windstream Communications. (See Analyst: Infinera Loses VZ Deal to AlcaLu and Windstream Taps Infinera for National Buildout.)

Wednesday's call also will mark the quarterly earnings call debut of Infinera CFO Brad Feller, who slid into that job March 1 after former CFO Ita Brennan left the company. Analyst consensus seems to be that Infinera will be upbeat about the first quarter, even though it is typically the slowest quarter. Some analyst estimates for quarterly revenue are around $140 million, which would represent a 12% increase of the first quarter of 2013.

— Dan O'Shea, Managing Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
MarkC73
50%
50%
MarkC73,
User Rank: Light Sabre
4/23/2014 | 11:41:52 PM
Re: Ciena Very Optimistic
I didn't see the graph, but I think it all depends on those price points, clearly Tier 1 and larger Tier 2 customers already have 100G needs in their core, but as access speeds and gear increase so will the metro.  How quickly will depend on the cost efficacy for the customers which will partially depends on economies of scale, the more you make the cheaper you tend to be able to make them.  Which means you'll have both low margin big customers and larger margin smaller customers, the more the merrier.  Personally, I see it happening sooner than later.

 
smkinoshita
50%
50%
smkinoshita,
User Rank: Light Sabre
4/22/2014 | 6:08:47 PM
Ciena Very Optimistic
I took a look at Ciena'a post about 100G, which showcased a graph by Infonetics Research that paints an extremly optimistic picture of 100G.  I'm not quite sure what to believe though; on one hand it seems a bit skewed, and on the other we all know how fast tech moves.  I can't find fault in Infinera's stand on the situation.
rgrutza600
50%
50%
rgrutza600,
User Rank: Lightning
4/22/2014 | 4:12:17 PM
premature speculation
The company just produced a PIC for metro in the fourth quarter of 2013.  It would be impossible for them to announce anything new in system development just three months later.  Maybe Q4 of 2014 would bet the next major point at which you would expect to hear about a system at best.  Here is what David Welch said in January:

Quote:

The volume on the long-haul market from all of our customers continues to grow consistent with what they have told us in the years past. And we have seen a slowdown in the volume of data in the long-haul. For Infinera's play in the metro, we do supply our current product for high capacity metros and we are deployed in high capacity metros today. What we will continue to do is build out our capabilities in our feature set in order to impact that, and we should be in a good position to impact that as 100-gig becomes a strong player within the metro space. 100-gig will be a significant player in themetro space in the late '15 beginning '16 type of timeframe.
Flash Poll
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (7) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV – Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business – Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Packet Design asks network professionals how they handle the cloud, SDN, and network management.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Is Windstream Boldly Setting a New Trend?
Carol Wilson, Editor-at-large, 7/29/2014
Sprint, T-Mobile: The Price War's On
Sarah Reedy, Senior Editor, 7/30/2014
Pics From Comic-Con -- Honest!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/30/2014
If Not Muni Networks, Then What?
Carol Wilson, Editor-at-large, 7/28/2014
Utilities Drive Connected Cars Into the Smart Grid
Jason Meyers, Senior Editor, Utility Communications/IoT, 7/31/2014
Like Us on Facebook
Twitter Feed