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April 25, 2014
Following its quarterly earnings report this week, Infinera is looking even less like a company licking its wounds after losing out on the 100G business at Verizon Communications. During the earnings call, the company reported 15% year-over-year revenue growth, and revealed it began realizing revenue from Level 3 Communications' 100G upgrade during the quarter.
"I don't think this was a surprise to anybody," said Infinera Corp. (Nasdaq: INFN) CEO Tom Fallon on the call regarding Level 3. He declined to attach a monetary value to the Level 3 business. Infinera has long been rumored to be a primary candidate for the Level 3 business, and has worked with the carrier before. But after Infinera missed out on the rumored Verizon deal, it was worth a getting some confirmation on the Level 3 deal from Infinera. (See Analyst: Infinera Loses VZ Deal to AlcaLu and Infinera: We're Fine, Thanks…)
Infinera also said its list of top customers during the quarter included a Tier 1 operator, a cable MSO, and a company described as an "Internet content provider." Infinera declined to identify the Tier 1 operator, but some analysts speculate it's CenturyLink Inc. (NYSE: CTL).
On the call, Fallon also was very upbeat about the market overall, the company's first quarter results, and near-term outlook. (See Infinera Reports Q1 Growth.)
He added that both capacity upgrades and new network build-outs -- and not always by the usual suspects -- continue to drive growth in the optical sector. "We've said for a long time that the industry is too focused on the top two Tier 1s, and not enough on other providers, including the Web 2.0 providers, which is where a lot [of] the future growth will be."
— Dan O'Shea, Managing Editor, Light Reading
You want Dans? We got 'em! This one, "Fancy" Dan O'Shea, has been covering the telecom industry for 20 years, writing about virtually every technology segment and winning several ASBPE awards in the process. He previously served as editor-in-chief of Telephony magazine, and was the founding editor of FierceTelecom. Grrrr! Most recently, this sleep-deprived father of two young children has been a Chicago-based freelance writer, and continues to pontificate on non-telecom topics such as fantasy sports, craft beer, baseball and other subjects that pay very little but go down well at parties. In his spare time he claims to be reading Ulysses (yeah, right), owns fantasy sports teams that almost never win, and indulges in some fieldwork with those craft beers. So basically, it's time to boost those bar budgets, folks!
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