x
DWDM

Infinera: $1B IPO Imminent?

CHICAGO -- Globalcomm 2006 -- It's time for another IPO... perhaps for optical startup Infinera Corp. (Nasdaq: INFN)

The Silicon Valley superstartup with a history of big plans and big numbers appears to be on the verge of going public in an IPO that one source figures could raise nearly $1 billion.

Financial analysts here say Infinera canceled its Globalcomm meetings with them. Usually, that kind of radio silence is precursor to an IPO, as the filing company's lawyers shut everybody up to keep from running afoul of SEC rules.

One financial source, after some mental envelope scrawling, figured an Infinera IPO could raise just less than $1 billion. He pegs the company's annual sales at roughly $100 million -- the company's run rate is already in that neighborhood. He points out that after a few years of fast growth, that could yield a big valuation. (See Infinera Numerates Its Numbers.)

The source added that IPO excitement persists in certain sectors -- and optical is one of these -- despite the debacle of the recent Vonage Holdings Corp. (NYSE: VG) offering. (See Vonage Gets a Haircut.)

Infinera officials declined to comment, although a random Light Reading flyby of Infinera's booth revealed a handful of investment-banker types vying for CEO Jagdeep Singh's attention.

Not that Infinera's story has been a secret. The company, which has crafted a powerful DWDM system that could recast the way optical networks are built, has scored seven wins with six more in the pipeline, Singh says. Customers have included notable names such as FLAG Telecom Ltd. , Level 3 Communications Inc. (NYSE: LVLT), and XO Communications Inc. -- and Infinera added Global Crossing (Nasdaq: GLBC) to the list in an announcement this week. (See Infinera Declares WDM War and Global Crossing Picks Infinera.)

Infinera has been a continual source of buzz since its early days, due to the masses of venture money it raised (more than $250 million by now) and Singh's track record with Lightera, which got acquired by Ciena Corp. (NYSE: CIEN) at the height of the telecom bubble. (See More on Infinera (née Zepton).)

Infinera almost certainly isn't profitable, as the company didn't begin shipping systems until mid-2004. But it's growing. It employs more than 250 people and put out a call to hire another 120 here at Globalcomm. (See Infinera Goes Live and Infinera Struts at Globalcomm.)

The company's IPO chances were strong enough to qualify for Light Reading's Top Ten Private Companies recently, and Singh was named among our Top Ten Movers & Shakers in Telecom. (See Infinera Inc. and Jagdeep Singh, CEO, Infinera.)

— Craig Matsumoto, Senior Editor, Light Reading

Page 1 / 12   >   >>
lightlunch 12/5/2012 | 3:52:19 AM
re: Infinera: $1B IPO Imminent? What year is it? How is a company on a $100M run rate going to raise that much. Let's say they float 10% of the company - 100M justifies a 10 billion dollar valuation?

lightlunch
Stevery 12/5/2012 | 3:52:18 AM
re: Infinera: $1B IPO Imminent? How is a company on a $100M run rate going to raise that much?

And it's not profitable?

The word "laughable" comes to mind. If any fund buys into this, I'll sell it short.
gadfly 12/5/2012 | 3:52:17 AM
re: Infinera: $1B IPO Imminent? Seems like a $100M run rate and 250 employees would be getting close to profitability - thats already $400k sales per employee.
Their production resources will also allow fast ramp-ups as they are highly leveraged and proven.
This one will probably fly high on real performance rather than the hot air and spinning mirrors of most telecom startups.
My money goes long.

GAD
ninjaturtle 12/5/2012 | 3:52:16 AM
re: Infinera: $1B IPO Imminent? It's sort of confidential...ya think.
ninjaturtle 12/5/2012 | 3:52:16 AM
re: Infinera: $1B IPO Imminent? How do you know what 10% of the outstanding shares are? Don't speak unless you know and believe me you do not know. This company has done a great job of keeping low key and very tight lipped. They are very close to vest and the culture of the company has been that way from day 1. They do not need to pound there chest. Focus and execute. That is what they have done for the past 5+ years. Whatever happens going forward will follow the same strategy.
longshort 12/5/2012 | 3:52:16 AM
re: Infinera: $1B IPO Imminent? So what do you know about their shares outstanding?
ninjaturtle 12/5/2012 | 3:52:16 AM
re: Infinera: $1B IPO Imminent? You people have no clue. The unannounced companies make Global Crossing look like a mom and pop shop. Take my word for it this is no smoke and mirrors. Ciena and other wish they were but they are a real as noses on your face. CHA CHING!

Anyone that thinks this BS is:

1) Jealous
2) Wished they were hired in 2001
3) Stupid
4) All the above.
redface 12/5/2012 | 3:52:16 AM
re: Infinera: $1B IPO Imminent? "(One financial source) The source added that IPO excitement persists in certain sectors -- and optical is one of these -- despite the debacle of the recent Vonage Holdings Corp. (NYSE: VG - message board) offering. (See Vonage Gets a Haircut.)"

What kind of "source" is this? How could any self-respecting "source" say that there is excitement in optical IPO when there is none? Why does Lightreading spread the rumors of irresponsible/ignorant "source" who may have an ulterior motive? Has Lightreading become an integral part of the Infinera hype machine?

Infinera is now playing a big game of smoke and mirrors. It hopes to find a big sucker who will pay a lot more than $250M so that the investors can recoup the investment. However, if every large company takes a wait-and-see approach, Infinera will probably die over time.
CogswellCogs 12/5/2012 | 3:52:15 AM
re: Infinera: $1B IPO Imminent? so we've figured out where ninjaturtle works. Now back to the smoke and mirrors.
ninjaturtle 12/5/2012 | 3:52:15 AM
re: Infinera: $1B IPO Imminent? The so-called "rank and file" makes the magic happen everyday. I doubt they would want to screw the people that made the so called impossible a reality. Certainly, the investors put up the money but it took the employees of Infinera to turn it into GOLD and give them the return they are going to make along with the employees. Otherwise, Infinera would be another optical dud. NOT!!!!!!
Page 1 / 12   >   >>
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE