Infinera (NASDAQ:INFN, news, filings), maker of longhaul and metro DWDM gear, helped kick off the earnings season today with its Q2 results. Revenue of $96.0M was at the high end of guidance and a hair above analyst consensus. Non-GAAP loss per share was 11 cents and non-GAAP gross margins checked in at 41%, both of which were inline with both guidance and estimates. Here is a quick table summarizing their numbers in the context of the last few quarters:
|$ in millions||Q2/10||Q3/10||Q4/10||Q1/11||Q2/11||Q3/11
The company indicated that TAM shipments were strong, with a larger backlog at the end of the quarter than in recent quarters. Three customers were above the 10% threshold, and with cable MSOs moved into their top 5 customer. But of course what investors are mostly waiting for is news of the company's next generation of products, which won't be out for some time yet. The 5x100Gbps PIC and the 40Gbps coherent product aren't due until later this year, although the company indicated it is making good progress toward them. They expect to start taking orders for the 40Gbps this quarter.
Infinera's third quarter guidance was released during the CC, with revenues and margins projected to be roughly inline with expectations, but earnings per share remaining at its current range. Level 3, which has historically been the company's largest customer, is not expected to be a 10% customer in the third quarter. Infinera is currently spending to bring those new products to market prior to deriving actual revenue from them, which is necessary but leaks some cash. From here though, things start to look more downhill. If they do get their 100G product in place by the end of the year, they should be in plenty of time for the real deployments - most thus far have been limited at best.
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