|Infinera Corporation Reports Fourth Quarter and Fiscal Year 2011 Financial Results|
SUNNYVALE, CA--(Marketwire - Feb 2, 2012) - Infinera Corporation (
GAAP revenues for the quarter were $112.0 million compared to $104.0 million in the third quarter of 2011 and $117.1 million in the fourth quarter of 2010.
GAAP gross margins for the quarter were 40% compared to 39% in the third quarter of 2011 and 49% in the fourth quarter of 2010. GAAP net loss for the quarter was $(19.4) million, or $(0.18) per share, compared to net loss of $(21.8) million, or $(0.21) per share, in the third quarter of 2011 and a net loss of $(2.7) million, or $(0.03) per share, in the fourth quarter of 2010.
Non-GAAP gross margins for the quarter were 42% compared to 41% in the third quarter of 2011 and 51% in the fourth quarter of 2010. Non-GAAP net loss for the quarter was $(6.7) million, or $(0.06) per diluted share, compared to net loss of $(9.2) million, or $(0.08) per diluted share in the third quarter of 2011 and net income of $7.6 million, or $0.07 per diluted share, in the fourth quarter of 2010. These Non-GAAP measures exclude non-cash stock-based compensation expenses and restructuring and other related costs.
GAAP revenues for the year were $404.9 million compared to $454.4 million in 2010.
GAAP gross margins for the year were 41% compared to 45% in 2010. GAAP net loss for the year was $(81.7) million, or $(0.78) per share compared to $(27.9) million, or $(0.28) per share in 2010.
Non-GAAP gross margins for the year were 43% compared to 47% in 2010. Non-GAAP net loss for the year was $(31.7) million or $(0.29) per diluted share in 2011, compared to net income of $22.4 million or $0.21 per diluted share in 2010. These Non-GAAP measures exclude non-cash stock-based compensation expenses and restructuring and other related costs.
Management Commentary on Q4
"Our fourth quarter revenue performance was higher than our expectations, and reflects continued solid demand from customers for Infinera's unique digital optical networks including cable, Tier One and bandwidth wholesale service providers," said Tom Fallon, president and chief executive officer. "We benefitted from unanticipated year-end budget spending by a number of customers and were able to execute to our disaster recovery process following the historic flooding in Thailand."
The company reported these additional fourth quarter highlights:
The company indicated that the development of its recently launched DTN-X remains on track with trials in Q1, expected volume production starting in Q2 and initial revenue recognition expected for the second half of calendar year 2012. Four lab trials with Tier One carriers have been scheduled in Q1 2012, and the company is in the process of preparing for the production ramp of the product.
"Customer interest in our new DTN-X since its launch has been very strong," said Fallon. "We believe this interest is in recognition of the unique advantage that Infinera's integrated platform brings to market -- the only platform offering integrated DWDM and OTN switching functionality without compromise."
Conference Call Information:
Infinera will host a conference call for analysts and investors to discuss its fourth quarter and fiscal year 2011 results and first quarter outlook today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). A live webcast of the conference call will also be accessible from the "Investor Relations" section of the company's website at http://www.infinera.com/. Following the webcast, an archived version will be available on the website for 90 days. To hear the replay, parties in the United States and Canada should call 1-800-925-5459. International parties can access the replay at 1-203-369-3851.
Infinera provides Digital Optical Networking systems to telecommunications carriers worldwide. Infinera's systems are unique in their use of a breakthrough semiconductor technology: the photonic integrated circuit (PIC). Infinera's systems and PIC technology are designed to provide customers with simpler and more flexible engineering and operations, faster time-to-service, and the ability to rapidly deliver differentiated services without reengineering their optical infrastructure. For more information, please visit http://www.infinera.com/.
This press release contains forward-looking statements, including statements regarding the development and production of, the expected revenue from, the customer interest in, the integration and functionality of our DTN-X product. These forward-looking statements involve risks and uncertainties, as well as assumptions that if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include unexpected delays in the development or production of the DTN-X product, decisions by Tier One carriers or others to delay lab trials of the product, changes in the marketplace that would affect customer demand for the product, as well as our general ability to react to trends and challenges in our business and the markets in which we operate; our ability to anticipate market needs and develop new or enhanced products to meet those needs; the adoption rate of our products; our ability to establish and maintain successful relationships with our customers; our ability to reduce customer concentration; our ability to compete in our industry; fluctuations in demand, sales cycles and prices for our products and services; our ability to operate profitably; aggressive business tactics by our competitors; our reliance on single-source suppliers; shortages or price fluctuations in our supply chain; our ability to protect our intellectual property rights; and general, political, economic and market conditions and events. Further information about these risks and uncertainties, and other risks and uncertainties that affect our business, are contained in the risk factors section and other sections of our annual report on Form 10-K filed with the Securities Exchange Commission on March 1, 2011, as well as subsequent reports filed with or furnished to the SEC. These reports are available on our website at http://www.infinera.com/ and the SEC's website at http://www.sec.gov/. We assume no obligation to, and do not currently intend to, update any such forward-looking statements.
Use of Non-GAAP Financial Information
In addition to disclosing financial measures prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain certain non-GAAP measures that exclude non-cash stock-based compensation expenses and non-recurring restructuring and other related costs. We believe these adjustments are appropriate to enhance an overall understanding of our underlying financial performance and also our prospects for the future and are considered by management for the purpose of making operational decisions. In addition, these results are the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income (loss), basic and diluted net income (loss) per share, or gross margin prepared in accordance with GAAP. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and are subject to limitations. For a description of these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measures, please see the section titled, "GAAP to Non-GAAP Reconciliations." We anticipate disclosing forward-looking non-GAAP information in our conference call to discuss our fourth quarter and fiscal year 2011 results, including an estimate of non-GAAP earnings for the first quarter of 2012 that excludes non-cash stock-based compensation expenses.
A copy of this press release can be found on the investor relations page of Infinera's website at http://www.infinera.com/.
Infinera Corporation and the Infinera logo are trademarks or registered trademarks of Infinera Corporation. All other trademarks used or mentioned herein belong to their respective owners.