Light Reading

Infinera Earnings & Metro Expectations on Tap

Dan O'Shea

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
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.

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.
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:


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
The comms industry is rallying to the cause of open, independent interoperability testing.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Interviews
AT&T's Chiosi on the Potential of Open Source

10|6|15   |   06:27   |   (0) comments

AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
LRTV Interviews
Network Security in a Gigabit World

10|6|15   |   05:52   |   (0) comments

Masergy's James Harrison talks about some of the network security and data center issues network operators need to consider as they expand their broadband services portfolios.
LRTV Documentaries
Telefónica: In Search of Virtual Simplicity

10|5|15   |   07:30   |   (0) comments

Francisco-Javier Ramon Salguero, head of Telefónica's NFV initiative, admits virtualization initially means greater complexity, but with the right abstraction layer, it is possible to create a services-driven network architecture. He explains how Telefónica's current trials and initiatives are aimed at doing that, and what his company and other carriers need to ...
LRTV Interviews
Gigabit Europe Takeaways

10|5|15   |   03:47   |   (0) comments

Participants from the inaugural Gigabit Europe event in Munich share their key takeaways from the conference.
Women in Comms Introduction Videos
Intel Urges Women to Take Advantage of Their Seat at the Table

10|5|15   |   4:27   |   (1) comment

Have inclusive and constructive conversations, attach a bigger meaning to your work and get involved in the cause, Intel's Monique Hayward advises women in comms.
LRTV Interviews
BT Updates on Plans

10|2|15   |   03:16   |   (2) comments

Peter Bell, CIO at Openreach, the access network division at UK incumbent BT, provides an update on the operator's trials and how Openreach is planning to deploy the broadband technology in its street cabinets.
Telecom Innovators Video Showcase
Sonus Shakes Up SD-WAN

10|2|15   |   7:22   |   (0) comments

Sonus CTO Kevin Riley sat down with Light Reading to discuss the trajectory of the company, its SDN ambitions and why Sonus is taking a market-disruptive approve to SD-WAN.
LRTV Interviews
CityFibre's Gigabit Vision

10|1|15   |   03:18   |   (1) comment

Mark Collins, director of Strategy & Public Affairs at competitive UK city network operator CityFibre, talks about his company's plans to help build Gigabit Cities.
Telecom Innovators Video Showcase
Automate, Scale & Create With Juniper's vCPE Solution

10|1|15   |   6:34   |   (0) comments

Join Kireeti Kompella, Juniper Networks CTO, and Steve Saunders, Light Reading Founder and CEO, as they discuss Juniper Networks' approach to NFV showcased with a turnkey vCPE solution, which demonstrates how service providers can use automation to rapidly deploy services.
LRTV Interviews
Gigabit Europe: Day 1 Takeaways

9|29|15   |   05:47   |   (5) comments

Light Reading's Ray Le Maistre and Iain Morris sup a beer and discuss some of the key takeaways from the first day of Gigabit Europe 2015.
LRTV Interviews
Gigabit in Europe

9|29|15   |   04:24   |   (0) comments

At the Gigabit Europe 2015 event in Munich, Heavy Reading's Graham Finnie talks about the availability of gigabit broadband in Europe.
Women in Comms Introduction Videos
AT&T's Band of Women

9|28|15   |   4:36   |   (0) comments

Brooks McCorcle, the president of AT&T's partner solutions divisions and a mathematician by trade, shares stats on AT&T's diversity and advice on how to create your own band of women at work.
Upcoming Live Events
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Communication service providers realize that an ICT transformation is critical to their long-term survival, but most haven't yet committed to making it happen.
Hot Topics
Verizon's Go90 Is Live – Will Anyone Watch?
Mari Silbey, Senior Editor, Cable/Video, 10/1/2015
Eurobites: Dunroamin'
Paul Rainford, Assistant Editor, Europe, 10/2/2015
Good News for NFV Interoperability
Steve Saunders, CEO and founder, Light Reading, 9/29/2015
TiVo Takes Aim With Bolt
Mari Silbey, Senior Editor, Cable/Video, 9/30/2015
Google Acquires Jibe to Bring RCS to Android
Sarah Thomas, Editorial Operations Director, 9/30/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
Cats with Phones
Hold My Calls, Indefinitely Click Here