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
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
LRTV Huawei Video Resource Center
Microgenesis on Huawei's Switches

9|19|14   |   3:57   |   (0) comments


Microgenesis is a solutions and system integrator company in the Philippines whose areas of expertise include data centers, networking and security products. In this video, Executive Director Jeffrey Choa talks to us about his customers needs and they benefit from using Huawei switches.
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
Upcoming Live Events
September 23, 2014, Denver, CO
October 29, 2014, New York City
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
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
Photos: Qualcomm Takes Over San Francisco
Sarah Reedy, Senior Editor, 9/19/2014
Connecticut Cities Crowdsource Gigabit Nets
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/15/2014
Pics: LR's Women in Telecom Breakfast
Sarah Reedy, Senior Editor, 9/16/2014
Like Us on Facebook
Twitter Feed