With its 5x100G DTN-X finally released into the wild, Infinera posted its Q2 results today. Revenues coming in toward the lower end of guidance while the market had them closer to the midpoint, while earnings per share and margins were in-line. As expected, the numbers start to look much better in the second half - with Q3 guidance fairly strong despite the prevailing mood out there. Here's a quick table of results in some context:
|$ in millions||Q2/11||Q3/11||Q4/11||Q1/12||Q2/12||Q3 and H2
|Revenue||96.0||104||112.0||104.7||93.5||Q3: 106-115 H2: 230-245|
Of course, the market has been waiting for the DTN-X to start shipping for a long time, which it finally did last month. Hence, the financial details of Q2 are perhaps less important than the early uptake of the newly released technology. Infinera says reception has been very positive and now has 10 customers purchasing the DTN-X, three of which are new to their customer list. As promised, they will begin booking revenues from the new gear in the third quarter.
Infinera narrowed its second half revenue guidance to the lower half of the range in the face of the cautionary macro economic environment that all vendors seem to be referencing. Third quarter revenues are expected to fall in the $106-115M range, the midpoint of which is slightly above analyst projections, so this seems to have been anticipated. Likewise, earnings per share guidance for the third quarter was a bit better than expected.
Last quarter they offered second half revenue guidance of $230-260M and some fighting words when it comes to pricing in order to establish the necessary footprint for later growth powered by the DTN-X. They say that in the market 100G is now selling at a better per-bit price point than 40G, suggesting that economical uptake really is at hand.
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