Infinera Corp. (INFN, Financial) provides Intelligent Transport Networks for network operators, enabling reliable, easy to operate, high-capacity optical networks. Infinera leverages its unique large scale photonic integrated circuits to deliver innovative optical networking solutions for the most demanding network environments. Intelligent Transport Networks enable carriers, Cloud network operators, governments and enterprises to automate, converge and scale their data center, metro, long-haul and subsea optical networks.
Strong First Quarter Results
Infinera reported strong first quarter earnings on March 28, 2015. Revenue in the first quarter of 2015 increased to $186.9 million from $186.3 million in the fourth quarter of 2014 and $142.8 million in the first quarter of 2014.
GAAP gross margin in Q1 was 47.2% when compared to 45.3% and 40.9% in the fourth and first quarter of 2014.
GAAP net income for the quarter was $12.4 million when compared to net income of $8.4 million and a net loss of $4.4 million in the fourth and first quarter of 2014.
Non-GAAP gross margin for the quarter was 47.8% compared to 46.1% in the fourth quarter of 2014 and 41.8% in the first quarter of 2014. Non-GAAP operating margin for the quarter was 12.2% compared to 11.0% in the fourth quarter of 2014 and 3.9% in the first quarter of 2014.
Non-GAAP net income for 2015 Q1 was $22.1 million compared to $18.0 million and $4.2 million, in the fourth and first quarter of 2014.
Second Quarter Outlook
INFN expects its second quarter (which is to be released on 27.06.2015) revenue to be in the range of $195 million- $205 million. Gross margin would be somewhere between 45%-47%. Operating expenses will be in the range of $68 million- $70 million. EPS is projected to be $0.16 per diluted share.
DTN-X platform
Facebook (FB, Financial) recently announced that it is going to utilize Infinera's DTN-X platform to support data transport.
INFN and Mid-Atlantic Broadband Communities Corporation (MBC), a successful wholesale open-access transport provider, announced the deployment of the Infinera DTN-X packet optical transport networking platform.
The DTN-X platform helps to grow MBC's core transport network backbone by tenfold. This caters to the advancing needs of high-performance, data intensive research and collaboration for biotech and big data applications now and in the future. The Infinera DTN-X platform enables MBC to deliver capacity of 100 Gb/s coherent transmission today via 500 Gb/s super-channels, with a forward-scale design to support terabit super-channels in the future. The Infinera Intelligent Transport Network, featuring the DTN-X platform, enables MBC to increase network scale to several terabits per second of connectivity across Virginia.
To End
INFN is enabling network operators to deliver vast amounts of bandwidth with greater ease. Today, over 135 customers in more than 72 countries rely on Infinera Intelligent Transport Networks to differentiate their services, protect their investment and lower operating expense as they scale their networks. Infinera is enabling the connected world by bringing automation, convergence and scalability to the optical network layer. Whether for the long-haul core, metro, or emerging high-capacity metro Cloud, Infinera Intelligent Transport Networks are designed to help carriers exploit the increasing demand for Cloud based services and datacenter connectivity as they advance into the Terabit Era.
Ovum, a leading global technology research firm, ranked Infinera the number one supplier of datacenter interconnect (DCI) platforms to Internet Content Providers (ICPs) and carrier neutral providers (CNPs) worldwide in 2014. Data reported by Ovum also indicates that Infinera is the fastest growing supplier of DCI equipment worldwide. INFN is catching up the momentum and is expanding profusely.
It has already in plans of acquiring Transmode. The company emphasizes that this acquisition will fuel future growth in the leading growth markets. These two companies when combined would be able to invest in technologies with continued differentiation. This combination will help the companies to address a larger customer base. With shared volume synergies and leveraged investments, both the companies are expected to grow in the future.
The recent first quarter earnings posted by the company seems to be good and the company has a long way to go. The industry is currently favorably placed and the company may play well. This company is a leader when it comes to high-speed optical networking space. The company is constantly innovating means to deliver data at a higher speed with efficiency.
