A Securities and Exchange Commission (SEC) filing last week for the DWDM superstartup, which is in the throes of going public, shows revenues climbed 12 percent to $49.2 million in the first quarter of 2007 -- just its second quarter of heavy-duty sales.
More precisely: For its first quarter, which ended March 31, Infinera reported losses of $19.8 million, or $2.62 per share, on revenues of $49.2 million, compared with losses of $25 million, or $3.55 per share, on revenues of $43.8 million the previous quarter.
For its first quarter in 2006, Infinera reported losses of $18.2 million, or $3.63 per share, on a paltry $2.7 million in revenues.
The numbers come from Infinera's latest S-1, filed with the SEC on May 10.
The latest S-1 says Infinera has 28 customers that have bought the company's DTN system for deployment in optical networks; 19 of those customers were picked up during the 12 months ended March 31. Level 3 Communications Inc. (NYSE: LVLT) and Broadwing Communications LLC (which Level 3 acquired in January) represented 75 percent of Infinera's revenues in 2006 and the first quarter of 2007.
The initial S-1 was highly anticipated from those who wanted to see whether Infinera's buzz was translating into cash. As it turns out, the company had very low revenues until late 2006, when the design wins it racked up paid off big. (See IPO Alert: Infinera Files Its S-1.)
Table 1: Infinera's Rising Revenues
|March 2006||$2.7 M|
|June 2006||$4.1 M|
|Sept. 2006||$7.7 M|
|Dec. 2006||$43.8 M|
|March 2007||$49.2 M|
|Source: Infinera Corp.|
But the news isn't all sunny. Infinera is going public amid continued deep losses, and the company's already had to restate some of its earnings data.
After filing its S-1 in February, Infinera came back in April with some recalculated numbers for 2005 and 2006, bringing revenues down and/or losses up in amounts less than $1 million.
Table 2: Infinera's Restatements
|FY 2005 revenues||$4,127||$4,127|
|FY 2005 net losses||($64,649)||($64,826)|
|FY 2006 revenues||$58,742||$58,236|
|FY 2006 net losses||($89,119)||($89,935)|
|Source: Infinera Corp. S-1 filings
All figures in thousands
The newer S-1s say the restatements are related to "non-routine manual accounting and reporting processes," which sounds like stuff the SEC wouldn't be too happy about. One problem Infinera notes is a tweak to the start date of "ratable revenue" for a certain customer, leading to a small drop in 2006 revenues.
Infinera also found it also had to recalculate the number of common shares for each fiscal year back to 2002, creating a bigger loss per share in every case.
Table 3: Infinera EPS Changes
|FY 2002 losses per share||($17.05)||($21.27)|
|FY 2003 losses per share||($16.10)||($19.61)|
|FY 2004 losses per share||($15.30)||($17.94)|
|FY 2005 losses per share||($13.76)||($14.08)|
|FY 2006 losses per share||($14.55)||($14.90)|
|Source: Infinera Corp. S-1 filings|
It's unclear whether these nips and tucks relate to CFO William Zerella's unexpected departure last June. Zerella resurfaced in September as CFO of Turin Networks Inc. (See Infinera's CFO Quits and Turin Wins, Adds CFO.)
Do-overs and white-out marks aside, Infinera seems to have reached a level of respectability. In a recent poll concerning the Light Reading Top 10 Movers & Shakers, Infinera's success was enough for readers to vote CEO Jagdeep Singh into second place -- albeit a distant second place. (See AlcaLu Exec Wins Popularity Contest.)
— Craig Matsumoto, West Coast Editor, Light Reading