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.
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
Interview With Rick Talbot, Principal Analyst, Current Analysis

10|31|14   |   2:12   |   (0) comments


At the NFV Open Cloud Forum 2014, Rick Talbot shared his positive feedback about the holistic and open approach that Huawei adopts for SDN and NFV. He also found the open sharing at the event valuable as it features different perspectives from Huawei experts, telecom operators, industry analysts as well as security experts.
LRTV Huawei Video Resource Center
Interview With David Snow, Principal Analyst, Current Analysis

10|31|14   |   2:24   |   (0) comments


David Snow talked about his understanding of Huawei and its SoftCOM strategy at the NFV Open Cloud Forum 2014, saying that Huawei's wide approach combining IT and CT expertise, introducing big data and analytics into solutions and contributing to the OpenStack community particularly resonate with him and make the company stand out in the industry.
LRTV Huawei Video Resource Center
Interview With Roz Roseboro, Senior Analyst, Heavy Reading

10|31|14   |   3:13   |   (0) comments


Roz Roseboro commented on Huawei's data center capabilities and NFV solutions at the NFV Open Cloud Forum 2014, saying that in addition to covering all three key domains of compute, storage and networking, the company also emphasizes the importance of management capabilities and professional services, which are essential in making NFV a reality.
LRTV Huawei Video Resource Center
Interview With Michael Howard, Co-founder & Principal Analyst, Infonetics Research

10|31|14   |   5:25   |   (0) comments


Michael Howard talked about SDN, NFV, and OpenStack adoption at Huawei's NFV Open Cloud Forum 2014. Particularly, he pointed out that Virtual Enterprise CPE is the top NFV use case that operators plan to invest in over 2014 and 2015 to deliver new enterprise services through virtualized functions.
LRTV Huawei Video Resource Center
Interview With Jerry Caron, Senior Vice President, Current Analysis

10|31|14   |   3:11   |   (0) comments


At Huawei's NFV Open Cloud Forum 2014, Jerry Caron from Current Analysis said that orchestration and management are key to realizing SDN and NFV for global carriers, and the approach that Huawei is taking, with its FusionSphere Cloud OS at the core, is in the right direction to address the challenges.
LRTV Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed