& cplSiteName &

Infinera Shifts Up a Gear

Ray Le Maistre
3/13/2014
50%
50%

SAN FRANCISCO -- OFC 2014 -- After years of showing significant promise, it looks like 2014 and beyond might be something of a golden era for transport equipment vendor Infinera Corp. (Nasdaq: INFN).

Why? I'm basing that opinion on a combination of evidence, third-party opinion, and gut feel.

And, perhaps ironically, it comes on the back of what might seem like a major setback for the company, as it recently missed out on a transport equipment tender at Verizon Communications Inc. (NYSE: VZ). (See Analyst: Infinera Loses VZ Deal to AlcaLu.)

Word on the show floor here at OFC, though (and not, I should say, from anyone at Infinera), is that the Verizon deal was not as lucrative as many might have thought, although that is just conjecture.

The thing is, Infinera is doing pretty well without that deal, and it looks like the company's financial health might be on course to improve.

CEO Tom Fallon, who is known for being cautious when talking about Infinera's business potential, noted during the company's most recent earnings call that he was confident of picking up new deals, including business from new Tier 1s, this year. (See Infinera: We're Fine, Thanks… and Windstream Taps Infinera for National Buildout.)

Those financials, announced in late January, gave the vendor's share price a lift, sending it north of $9.00 on January 30.

The stock got another boost this week when Goldman Sachs upgraded Infinera to a "buy" rating, sending the stock up by almost 15% Wednesday to $9.71.

And while it dipped again during Thursday trading, an after-hours surge took Infinera's share price back to the $9.71 mark.

Other analyst firms here at OFC, including Jefferies & Co. Inc. and MKM Partners , have also reported positively on the vendor's prospects, and overall analyst consensus is that the company will increase its annual revenues to more than $613 million this year from $544 million in 2013, a rate of nearly 13% (if the forecasts are accurate).

And then there's the metro market. Infinera, which has a reputation for developing systems that are easy to deploy and enable fast service provisioning, has long talked about how it might develop a photonic integrated chip (PIC) for a metro platform. Now that time has nearly come: The company has now developed a PIC for the metro, Senior Director of Corporate Marketing Mark Showalter told me here this week, though exact plans for a metro product, and the timing around the launch of such a product, have not been announced.

That product, which some here have dubbed the DTN-M, looks set to be a significant addition to the metro transport systems market, which the optical sector expects to take off this year and hit its stride in 2015 as demand for network capacity continues to grow, driven by intra-data center traffic, video, and consumer fixed/mobile broadband usage.

In his recent report, The Rise of 100G & Terabit Transport Networks, Heavy Reading Senior Analyst Sterling Perrin notes that the market for 100G metro systems is set to grow from about $400 million this year to more than $2.1 billion in 2018.

The metro market is highly competitive. But if Infinera can take the best features of its PIC and build an affordable system that retains the company's core customer-friendly strengths (ease of use and speedy provisioning), it stands a very good chance of grabbing a healthy slice of that fast-growing metro 100G sector.

I wouldn't bet against it.

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
tojofay
100%
0%
tojofay,
User Rank: Light Sabre
3/15/2014 | 10:31:39 AM
Re: check your survey on the right side of the page
"In the future when we enable metro-reach super-channels using PM-16-QAM, they will support 24 Terabit-per-second per fibre pair using the line system we are announcing," says Geoff Bennett, director, solutions and technology at Infinera.
Liz Greenberg
50%
50%
Liz Greenberg,
User Rank: Light Sabre
3/14/2014 | 6:44:22 PM
Re: And From the Cubicles
So @mendykI see that you have no strong opinion on glassdoor!  Just joking, but it is an important reminder to make sure that we all watch who we use as our sources of information in this "information age".
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
3/14/2014 | 2:50:08 PM
Re: And From the Cubicles
I would trust nothing posted on Glassdoor, pro or con. It's a garbage heap of a site.
Jessie Morrow
100%
0%
Jessie Morrow,
User Rank: Lightning
3/14/2014 | 2:30:33 PM
Re: And From the Cubicles
mendyk - a perusal of the Infinera comments on Glassdoor if anything tilt towards  the positive. My apologies for including a negative comment in my first post, here is something to restore a modicum of fairness and balance;

"Great place for cutting edge technology and reasonable management"
mendyk
100%
0%
mendyk,
User Rank: Light Sabre
3/14/2014 | 2:08:00 PM
Re: And From the Cubicles
Jessie -- You should know that Glassdoor is mainly used by disgruntled employees (or former employees) to trash companies anonymously. Using it to judge the quality of a company is absurd.
tojofay
100%
0%
tojofay,
User Rank: Light Sabre
3/14/2014 | 12:49:16 PM
check your survey on the right side of the page
Only 1 company 1tbit capable and soon 10tbit capable and more then half respondents believe that is the future
Jessie Morrow
0%
100%
Jessie Morrow,
User Rank: Lightning
3/14/2014 | 12:29:21 PM
And From the Cubicles
And  on the rarely heard employee side of the roster are many pro and con opinions of Infinera, http://www.glassdoor.com/Reviews/Infinera-Reviews-E15060.htm 

A recent gripe: "  Limited scope for growth; consistently low stock price; lack of clear direction in roadmap; only few research and development opportunities."
More Blogs from Shades of Ray
The social media giant's solar-powered Aquila drone, designed to provide Internet access to remote locations, has taken to the skies – but why?
European vendor's momentum continues into 2016 as it reports impressive sales growth, only some of which comes from its Overture acquisition, but its profitability isn't keeping up.
A fiber-to-the-home broadband trial in the city of York using CityFibre's network looks likely to lead to more competitive ultra-broadband services across the UK.
The notion of 5G most commonly conjures up a vision of incredibly high-speed wireless/mobile broadband connectivity, but right now it's fixed line broadband that is key to operators' 5G plans.
The UK's decision to quit the European Union has had global reverberations but it's hard to tell exactly how bad the aftershocks will be.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
Alan Bateman, Director, Agile Transformation
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
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.
Between the CEOs
CEO Chat: UXP's Gemini Waghmare

8|26|16   |     |   (0) comments


Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cisco Developing 'Monica' Digital Assistant
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
FirstNet: A Billion-Dollar Boondoggle?
Dan Jones, Mobile Editor, 8/26/2016
Google Fiber Can't Be Called a Failure
Carol Wilson, Editor-at-large, 8/26/2016
Rocket Fiber Lights Up Detroit With Gigabit
Elizabeth Miller Coyne, Managing Editor, 8/22/2016
'Most Wanted' Kobi Comes Home
Ray Le Maistre, Editor-in-chief, 8/23/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.