Infinera Momentum Continues
The optical equipment vendor said net loss for the third quarter was $5.5 million, or 7 cents a share, on GAAP revenues of $62.2 million. That compared with a loss of $28.6 million, or $4.42 per share, on sales of $7.7 million during the year-ago quarter.
Due to accounting rules, Infinera doesn't report a sale all at once but spreads the money out over multiple quarters or even years like a software company. As a result, the company reports invoiced shipment revenues separately from GAAP revenues. (See Infinera Smooths Out the Lumps.)
The company said invoiced shipments were up 91 percent year over year, from $42.0 million in the third quarter of 2006 to $80.4 million in the third quarter of 2007.
Infinera said GAAP gross margins rose to 34 percent in the third quarter, from 28 percent in the second quarter. Gross margins on an invoiced shipments basis were 43 percent in the third quarter, compared with 37 percent in the second quarter.
The company, which makes a highly integrated optical transport system based on photonic integrated circuits, said it added seven new customers in the third quarter, bringing the company's customer roster to 38, compared with 31 in the second quarter of 2007.
Recent announced customer wins include 360networks Inc. , Cox Communications Inc. , XO Communications Inc. , EWE TEL GmbH , and North China Grid Company (NCGC) Limited. (See Infinera Pulls a 360, 360networks Picks Infinera, Cox Picks Infinera, XO Picks Infinera Again, Infinera Adds to Euro Footprint, and Infinera Wins in China.)
Infinera also said its reliance on Level 3 Communications Inc. (NYSE: LVLT) is waning. Level 3 accounted for 28 percent of revenues in the quarter, as opposed to 48 percent of revenues in the second quarter, and 55 percent of sales a year ago.
Continued strength in its business has led Infinera to prepare a secondary public offering, quick on the heels of its IPO. Earlier this month, the optical vendor said it would raise $113 million by issuing 5 million new shares to the public market. (See Infinera Aims to Raise $113M and Infinera Preps Offering.)
With all this momentum, it's little surprise that Light Reading readers have taken notice. Last week, we announced that Infinera CEO Jagdeep Singh won the reader-nominated and reader-chosen Leading Lights award for Person of the Year. (See LR Names 2007 Leading Lights Winners and Light Reading's Person of the Year: The Finalists.)
— Ryan Lawler, Reporter, Light Reading