Akamai, Infinera Both Check In Strong

October 24th, 2012 by · 1 Comment

Both Akamai and Infinera reported earnings after the market closed, and both companies had good news to share and both stocks are up after hours.

The cloud and CDN giant Akamai (NASDAQ:AKAM, news, filings) had no problem at all with the third quarter, turning in revenues, adjusted EPS, and gross margins all above both guidance and expectations.   All verticals participated in the surge, but tipping the scales in particular were several large software releases that started a bit earlier than usual. Fourth quarter guidance was in-line with expectations.  Here's a quick table in some context:

$ in millions Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12
(guidance)
Revenue 281.9 323.4 319.4  331.3 345.3 373-385
COS  93.3 102.5 102.6  107.5  110.0  
SG&A+R&D  118.8 132.8 140.4  139.4  149.7  
Gross Margin % 66.9% 68.3% 67.8% 67.6%  68.1% ~70%
Adj.  EPS 0.34 0.45 0.41 0.43  0.43 0.48-0.50

Meanwhile, Infinera's third quarter featured better than expected non-GAAP earnings per share on revenues that were in-line with guidance and analyst expectations.  On the DTN-X front, the company said it has 16 customers for the next-gen DWDM platform, five of which are new.  They also talked about a North American Tier 1 longhaul win, which they hope to announce later this year.  They also added three new customers for their established DTN product line.  Fourth quarter guidance straddled expectations.  Here's the relevant data in some context:

$ in millions Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12(guidance)
Revenue 104  112.0 104.7  93.5 112.2 122-132
Non-GAAP EPS (0.09) (0.06) (0.10)  (0.16) (0.07) (0.04)-(0.08)
Non-GAAP Gross Margin % 41% 42% 40%  37% 39% 35-36%

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  • Robert Grutza says:

    DTN-X ramp appears to be going to plan and they are executing well. What is the deal on INFN’s stock price? I don’t see how it is valued this cheaply…

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