In an SEC filing on Tuesday, DWDM specialist Infinera (NASDAQ:INFN, news, filings) offered some new information on its status. First of all, the company began shipping its new metro edge product in August with four customer wins already, and they will formally introduce the product at Supercomm in October. Having a metro product to complement their longhaul and undersea products should open new revenue opportunities for Infinera, and the timing seems good assuming the telecommunications industry climbs out from under its rock over the next few quarters.
On the 40G front, Infinera now expects to deliver its 10x40Gbps DTN product to its system developers by the end of 2009. They note that it took 12-24 months from that milestone to get their previous DTN systems into customer deployments. However, I think that given the existing infrastructure along with pressure for 40G right now from across the sector, they will find a way to speed up the process and get it done earlier in 2010 than that. It's still quite a while away, but the important metric will be the cost structure. Infinera's pitch is that by integrating as much as possible onto a chip and eliminating component packaging that they can scale the cost per bit better than other technologies with each generation. Will the numbers for their 40G product back them up?
And last, but definitely not least, Infinera announced Spanish-based communications giant Telefonica (NYSE:TEF, news, filings) as a customer for its DTNs, both on land and undersea. Their customer list keeps growing despite the recession, so theoretically when the capex tide comes back in their revenues should do quite well.
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