Infinera Solid in Q4 as DTN-X Rollout Continues

Infinera (NASDAQ:INFN, news, filings) reported its fourth quarter earnings yesterday after the market closed, finishing out the year by meeting guidance and coming in just ahead of analyst projections on all fronts.  The company is now in the midst of deploying its latest DTN-X platform across a variety of customers, a stage at which margins dip for a time.  Here’s a quick chart of their numbers in some context:

$ in millions	Q4/11	Q1/12	Q2/12	Q3/12	Q4/12	Guidance
Revenue	112.0	104.7	93.5	112.2	128.1	Q1: 115-125, 2013: +10-20%
Non-GAAP EPS	(0.06)	(0.10)	(0.16)	(0.07)	(0.05)	Q1: (0.05)-(0.09)
Non-GAAP Gross Margin %	42%	40%	37%	39%	36%	Q1: 35-36%, 2013: 38-40%

The composite analyst projections on Yahoo had revenues at $127.4M and a non-GAAP loss per share of $0.06, which they came in just ahead of.  In addition, guidance for Q1 appears to be right on the money, with normal seasonality supplying a dampening effect.  The company offered general full year guidance envisioning 10-20% revenue growth over 2012, which works out to a relatively wide range of $482-526M but also seems in line.

The second half’s long awaited DTN-X rollout seems to have gone reasonably well.  They now boast 22 DTN-X customer commitments (including their Tier 1 CenturyLink win), seven of them new customers, and they have shipped 2,000 100G ports.  According to the conference call, Infinera now believes that 100G is more economical than 40G, and that the overall uptake is exceeding industry forecasts.

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Categories: Financials · Telecom Equipment