Infinera had another solid quarter, with continued growth coming from the ongoing 100G roll-outs around the world. Here are a few of their numbers in some context:
|$ in millions||Q3/13||Q4/13||Q1/14||Q2/14||Q3/14||Guidance|
|Non-GAAP Gross Margin %||49%||41%||41.8%||43.3%||44.2%||Q4: 43-45%|
|Non-GAAP Operating Expenses||55.8||56.0||59.4||62.2||62.0||Q4: 63-65|
|Non-GAAP EPS||0.10||0.00||0.03||0.11||0.11||Q4: 0.09-0.13|
Revenues of $173.6M were at the high end of guidance and above the street's projections, with particularly strong demand coming from Europe. Meanwhile, on-GAAP earnings per share of $0.11 exceeded both the high end of guidance and the analyst consensus. But it was Q4 guidance that has the street happiest, with midpoint revenues of $180M and earnings per share of $0.11 expected to be $20M and $0.06 higher than where analysts had been sitting.
While the 100G longhaul market is the primary driver today, Infinera is looking hard at taking their PICs to the metro cloud opportunity going forward. That metro data center interconnection market could help them expand their addressable market, should the ongoing cloud revolution continue to roll on.
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