Infinera also posted its first quarter earnings yesterday, and like Akamai they made investors quite happy. The company’s DTN-X entry into the 100G market hit the streets a bit less than a year ago after long anticipation, and three quarters later it is clearly driving things forward – with forward meaning increased guidance:
| $ in millions | Q1/12 | Q2/12 | Q3/12 | Q4/12 | Q1/13 | Guidance |
|---|---|---|---|---|---|---|
| Revenue | 104.7 | 93.5 | 112.2 | 128.1 | 124.6 | Q2: 130-140, 2013: ~20% growth |
| Operating Expenses | 60.3 | 58.7 | 59.7 | 61.8 | 57.6 | Q2: 53-54, 2013: 205-210 |
| Non-GAAP EPS | (0.10) | (0.16) | (0.07) | (0.05) | (0.06) | Q2: (0.04)-0.01 |
| Non-GAAP Gross Margin % | 40% | 37% | 39% | 36% | 36% | Q2: 37-39%, 2013: 38-40% |
Infinera hit the top of guidance in terms of revenues, and gave Q2 guidance well in excess of expectations while raising its full year growth target to 20% – the top of the range given just last quarter. Non-GAAP earnings per share was a penny better than expected, while forward guidance’s lower bound was itself a penny ahead of analyst projections. But beyond the numbers, the company sounds very bullish right now, transitioning further from a few years of caution.
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Categories: Financials · Telecom Equipment
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If this company grows at only 20% I will be very surprised. That is basically market rate growth for 100G and they should outperform.