Infinera Corporation Reports First Quarter 2009 Financial Results
Revenues of $66.6 Million for the Quarter; Selected by Two Additional European Tier-One Customers
Sunnyvale, CA, April 21, 2009 – Infinera Corporation (Nasdaq: INFN), a leading provider of digital optical communications systems, today released financial results for the first quarter ended March 28, 2009.
- GAAP revenues for the first quarter of 2009 were $66.6 million compared to $86.2 million on an adjusted GAAP basis for the fourth quarter of 2008 and $95.5 million on an invoiced shipment basis in the first quarter of 2008.
- GAAP gross margins for the quarter were 30%. Excluding non-cash stock-based compensation, non-GAAP gross margins were 31% in the first quarter of 2009 compared to 36% on an adjusted GAAP basis for the fourth quarter of 2008 and 45% on an invoiced shipments basis in the first quarter of 2008.
- The GAAP net loss for the quarter was $24.3 million, or $0.26 per share. Excluding non-cash stock-based compensation, the net loss on a non-GAAP basis was $17.6 million or $0.19 per share, in the first quarter of 2009 compared to a net loss of $9.0 million, or $0.10 per share, on an adjusted GAAP basis in the fourth quarter of 2008 and net income of $12.6 million, or $0.13 per diluted share, on an invoiced shipments basis, for the first quarter of 2008.
“The combination of macroeconomic effects and timing associated with some large deployments put downward pressure on our revenue and gross margins for the first quarter,” said Jagdeep Singh, president and chief executive officer of Infinera. “However, we saw continued momentum with tier-one carriers, as Infinera was selected by two additional European PTTs.
“In addition, we continue to experience a robust level of DWDM activity with carriers worldwide and see additional evidence that our unique PIC-based value proposition is resonating with existing customers and prospects,” said Singh. “We also continue to make significant strides in advancing our technology lead. As a result, we believe that we are well-positioned to resume top-line growth and improved bottom-line performance as the macroeconomic environment improves.”
The company noted the following Q1 highlights:
- The selection of Infinera by the two new European-based Tier 1 carriers continues the company’s string of successes in Europe, begun almost 11 months ago with its win at Deutsche Telecom.
- At the OFC tradeshow last month, Infinera successfully demonstrated its 400 Gbps PIC integrating ten 40Gbps channels.
- Enabled by its new ILS2 line system, the company also won new deals that included submarine network routes, an important growth segment in the DWDM space.
Footnote: For an explanation of our use of Non-GAAP, Invoiced Shipments and Adjusted GAAP measures and a full reconciliation of these measures to our GAAP results, please see the section of the accompanying tables titled “GAAP to Non-GAAP, Invoiced Shipment and Adjusted GAAP Reconciliations.” We have not shown comparisons to our first quarter 2008 GAAP results because those results were significantly affected by the recognition of ratable product and related support and services revenue from shipments made prior to the first quarter of 2008, which we believe makes those comparisons less useful for investors. See our GAAP Condensed Consolidated Statements of Operations attached to this release for these GAAP to GAAP comparisons.
Conference Call Information:
Infinera will host a conference call for analysts and investors to discuss its first quarter results and second 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 www.infinera.com. Following the webcast, an archived version will be available on the website for 30 days. To hear the replay, parties in the United States and Canada should call 1-866-457-5717. International parties can access the replay at +1-203-369-1295.
Infinera Q109 GAAP Condensed Consolidated Statements of Operations
Infinera Q109 GAAP to Non-GAAP Invoiced Shipment and Adjusted GAAP Reconciliation
Infinera Q109 Condensed Consolidated Balance Sheets
Infinera Q109 Condensed Consolidated Statements of Cash Flows
Infinera Q109 GAAP to Non-GAAP Invoiced Shipment Stock-based Compensation Reconciliation
Infinera Q109 Supplemental Financial Information
About Infinera
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 optical networks 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 www.infinera.com.
Forward-Looking Statements
This press release contains forward-looking statements, including statements about our products and business and statements about our experiencing a robust level of DWDM activity with carriers worldwide, our seeing evidence that our PIC-based value proposition is resonating with existing customers and prospects, our continuing to make significant strides in advancing our technology lead, and our belief that we are well-positioned to resume top-line growth and improved bottom-line performance as the macroeconomic environment improves. 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 our 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; shortages or price fluctuations in our supply chain; our ability to protect our intellectual property rights; general political, economic and market conditions and events; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission (SEC). More information about these and other risks that may impact Infinera’s business are set forth in our annual report on Form 10-K, which was filed with the SEC on February 17, 2009, as well as subsequent reports filed with the SEC. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.
Non-GAAP and other Financial Measures
In addition to disclosing financial measures prepared in accordance with United States Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain certain non-GAAP and other financial measures that reflect invoiced shipments, adjusted GAAP revenue and exclude non-GAAP non-cash stock-based compensation. For a description of these non-GAAP financial measures, including the reasons why management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled “GAAP to Non-GAAP, Invoiced Shipments and Adjusted GAAP Reconciliations” as well as the accompanying notes on the use of certain non-GAAP measures. We anticipate disclosing forward-looking non-GAAP and other financial information in our conference call to discuss our first quarter of 2009 results, including an estimate of non-GAAP earnings for the second quarter of 2009 that excludes non-cash stock-based compensation expenses related to our equity awards and the right to purchase common stock under our Employee Stock Purchase Plan in the period.
A copy of this press release can be found on the investor relations page of Infinera’s website at 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.
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