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Optical/IP

Infinera reports Q4, full-year sales growth

SUNNYVALE, Calif. – Infinera Corporation (NASDAQ: INFN) today released financial results for its fourth quarter and fiscal year ended December 28, 2019.

GAAP revenue for the quarter was $384.6 million compared to $325.3 million in the third quarter of 2019 and $332.1 million in the fourth quarter of 2018.

GAAP gross margin for the quarter was 29.0% compared to 26.7% in the third quarter of 2019 and 25.4% in the fourth quarter of 2018. GAAP operating margin for the quarter was (15.8)% compared to (21.3)% in the third quarter of 2019 and (34.4)% in the fourth quarter of 2018.

GAAP net loss for the quarter was $(66.6) million, or $(0.37) per share, compared to $(84.8) million, or $(0.47) per share, in the third quarter of 2019 and $(133.5) million, or $(0.76) per share, in the fourth quarter of 2018.

Non-GAAP revenue for the quarter was $386.5 million compared to $327.6 million in the third quarter of 2019 and $336.6 million in the fourth quarter of 2018.

Non-GAAP gross margin for the quarter was 35.2% compared to 33.1% in the third quarter of 2019 and 31.8% in the fourth quarter of 2018. Non-GAAP operating margin for the quarter was 2.3% compared to (5.7)% in the third quarter of 2019 and (10.5)% in the fourth quarter of 2018.

Non-GAAP net income for the quarter was $6.4 million, or $0.03 per diluted share, compared to net loss of $(30.5) million, or $(0.17) per share, in the third quarter of 2019, and $(44.3) million, or $(0.25) per share, in the fourth quarter of 2018.

GAAP revenue for the year was $1,298.9 million compared to $943.4 million in 2018. GAAP gross margin for the year was 25.1% compared to 34.0% in 2018. GAAP operating margin for the year was (27.0)% compared to (19.7)% in 2018. GAAP net loss for the year was $(386.6) million, or $(2.16) per share, compared to $(214.3) million, or $(1.36) per share, in 2018.

Non-GAAP revenue for the year was $1,316.6 million compared to $948.0 million in 2018. Non-GAAP gross margin for the year was 33.6% compared to 38.4% in 2018. Non-GAAP operating margin for the year was (6.3)% compared to (5.2)% in 2018. Non-GAAP net loss for the year was $(107.3) million, or $(0.60) per share, compared to net loss of $(59.6) million, or $(0.38) per share, in 2018.

A further explanation of the use of non-GAAP financial information and a reconciliation of the non-GAAP financial measures to the GAAP equivalents can be found at the end of this release.

“In the fourth quarter, we delivered solid results and achieved significant bookings growth. We also completed the most challenging integration tasks, doubled our synergy savings commitments for the year and returned to non-GAAP operating profitability in the fourth quarter of 2019,” said Tom Fallon, Infinera CEO. “Major accomplishments this past year included strengthening our global customer base with 10 Tier 1 scale customer wins, significant growth in backlog, and continued progress in building our innovation pipeline as evidenced by announced DRX wins, the introduction of XR optics, and growing confidence in our plan to deliver 800G products to the market in 2020.”

Financial Outlook
Infinera's outlook for the quarter ending March 28, 2020 is as follows:

  • GAAP revenue is expected to be $323 million +/- $10 million. Non-GAAP revenue is expected to be $325 million +/- $10 million.

  • GAAP gross margin is expected to be 29% +/- 150 bps. Non-GAAP gross margin is expected to be 32.5% +/- 150 bps.

  • GAAP operating expenses are expected to be $153 million +/- $2 million. Non-GAAP operating expenses are expected to be $130 million +/- $2 million.

  • GAAP operating margin is expected to be (18)% +/- 200 bps. Non-GAAP operating margin is expected to be (8)% +/- 200 bps.

  • GAAP EPS is expected to be $(0.38) +/- $0.03. Non-GAAP EPS is expected to be $(0.18) +/- $0.03.

    Infinera’s Financial Outlook above contemplates a projected $15 million revenue impact from the coronavirus.

    Infinera Corp. (Nasdaq: INFN)

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