& cplSiteName &

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        ADD A COMMENT
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: Light Sabre
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.
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
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 Huawei Video Resource Center
BBWF 2016: Orange Poland's Next-Gen Central Office

3|28|17   |     |   (0) comments


Introduction to Orange Poland's legacy next-generation central office solution.
LRTV Custom TV
Viavi at OFC 2017

3|28|17   |   4:15   |   (0) comments


Light Reading's Editor-in-Chief Craig Matsumoto reports from the Viavi booth at OFC and gets an update on the 400G testing market from Tom Fawcett, VP and GM of LAB & Production. At this year's event, Viavi won three awards from Lightwave magazine and showcased an interoperability demo with Ethernet Alliance and Finisar.
LRTV Custom TV
Connecting the Entire Home With DOCSIS 3.1

3|28|17   |   3:58:   |   (0) comments


Hitron Technologies had the first cable modem certified for DOCSIS 3.1 and already has over 120,000 units in the field. Greg Fisher, CTO of Hitron, provides an update on his company's rollout of new gateways and why he thinks DOCSIS 3.1 will continue to drive value for operators into 2017 and beyond.
LRTV Interviews
Amazon Prime's Hand of God Creator on Producing for OTT

3|28|17   |     |   (0) comments


Ben Watkins is the creator, writer and producer of Hand of God, a series on Amazon Prime. At Light Reading's Cable Next-Gen conference in Denver, he explained the advantages of producing for an OTT platform versus traditional TV.
LRTV Custom TV
How Metrological Keeps Cable Customers on the Couch

3|28|17   |     |   (0) comments


Metrological offers an open source solution that reduces the time it takes cable operators to integrate OTT content into the linear television viewing experience.
LRTV Documentaries
The ABC of OTT

3|28|17   |     |   (0) comments


At Light Reading's Cable Next-Gen conference in Denver, Ben Watkins, creator of Amazon Prime's Hand of God show, explained how producing content for an OTT platform differs from producing content for traditional TV.
Shades of Ray
Why Analytics Is the Tech World's Digital Glue

3|27|17   |   02:20   |   (0) comments


It was obvious at the massive annual CeBIT enterprise tech trade show that the foundation for tech innovation right now is real-time analytics.
LRTV Custom TV
CommScope – Meeting the Demands of Tomorrow's Networks

3|24|17   |     |   (0) comments


Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
LRTV Huawei Video Resource Center
AMS-IX & Huawei's OSN 902

3|24|17   |     |   (0) comments


Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
LRTV Huawei Video Resource Center
Huawei's Smart Energy Innovation Center

3|24|17   |     |   (0) comments


In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
WiCipedia: Supergirls, No More Excuses & Media Monitoring
Eryn Leavens, Special Features & Copy Editor, 3/24/2017
Welcome to the Wild West of Privacy
Carol Wilson, Editor-at-large, 3/24/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Working From Home Doesn't Work for Everyone Click Here
You shouldn't nap on your keyboard, for instance.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.