Infinera Levels Up
I suppose it could be Bob'sDumbComicBooks.com, but people are pointing out that Google (Nasdaq: GOOG) would fit, too. Google has long been presumed to be an Infinera customer. (See Infinera Courts Rumors .)
Regardless... It's important that the largest customer wasn't Level 3 Communications Inc. (NYSE: LVLT), which used to provide nearly all of Infinera's revenues. Infinera says its top 10 customers accounted for 72 percent of its sales, the widest spread it's had yet.
Infinera's invoiced shipments (a revised measure of revenues) came in at $86.2 million, beating analyst expectations of $75.5 million, according to Reuters Research . But Infinera's gross margins suffered due to the number of new customers it got, since the company gets lower margins on the first delivery of gear to any given customer. That led to losses of 10 cents per share, compared with expected losses of 5 cents per share. (See Infinera Posts Q4.)
Infinera shares were down 80 cents (9.6%) at $7.52 in after-hours trading.
— Craig Matsumoto, West Coast Editor, Light Reading