Is Verizon an Infinera Customer?
And "Tier 1" does not mean a cable operator, an Internet content provider or a bandwidth wholesaler, CEO Tom Fallon very specifically said on Thursday's earnings call.
Who could it be? Fallon didn't say, naturally, but Verizon Communications Inc. (NYSE: VZ) seems to be hanging out with the company quite a lot. For example, Stuart Elby spoke at an Infinera event in September. (See Verizon Teases at Infinera Event.)
Infinera and Verizon are jointly hosting a packet-optical workshop to coincide with Light Reading's Packet Optical Transport Evolution conference in New York in May.
Last quarter, Infinera reported it had four customers in trials for the DTN-X. It's now got four customer orders -- one from Cable & Wireless Worldwide plc (London: CW) and three from previous Infinera customers, Fallon said Wednesday.
Two of those trials have led to purchase orders. Infinera has six more DTN-X trials starting during the current quarter, for a total of eight ongoing trials, Fallon said.
Revenues for the DTN-X should start arriving later in the year, Infinera officials said.
But that creates a short-term problem. Infinera gets better margins from line cards than from new systems -- so it makes less profit off a customer at first, then builds up more profits over time. So for the second quarter, which ends in June, Infinera expects non-GAAP losses per share of 14 to 18 cents, worse than the 11 cents-per-share loss analysts expected, according to Thomson Reuters .
For its first quarter, which ended March 31, Infinera reported revenues of $104.7 million and a net loss of $20.6 million, or 19 cents per share. That's compared to year-ago revenues of $92.9 million and losses of $16.4 million, or 16 cents per share.
Non-GAAP losses of 10 cents per share beat analysts' expectations by a penny.
— Craig Matsumoto, Managing Editor, Light Reading