As the 100G market gains momentum, so are the bandwidth arms merchants that specialize in it. Infinera had another strong quarter, showing sequential growth despite Q1 being usually somewhat weaker and guiding well above expectations for Q2. Here is a table of their results in some context:
|$ in millions||Q1/13||Q2/13||Q3/13||Q4/13||Q1/14||Guidance|
|Non-GAAP Gross Margin %||36%||39%||49%||41%||41.8%||Q2: ~40%|
|Operating Expenses||57.6||60.3||55.8||56.0||59.4||Q2: 58-60|
|Non-GAAP EPS||(0.06)||(0.01)||0.10||0.00||0.03||Q2: 0.02-0.06|
Revenues for the first quarter came in at the top of guidance and above estimates, while adjusted earnings per share were four cents above composite analyst estimates and the midpoint of guidance. For Q2 revenue the street had been looking at 150M, so the projected range of 160-170M with flat opex ought to make them pretty happy.
And Level 3 is officially back as a big customer now, finally taking the 100G plunge now that the economics are improving and doing it via a familiar vendor. As many had guessed, they were the 'large North American bandwidth wholesaler' mentioned on the prior call.
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