Q2 earnings season is now upon us, and yesterday afternoon the DWDM specialist Infinera helped kick things off for the vendors. Revenues and non-GAAP earnings per share of $207.3M and $0.18 were both stronger than anticipated, as were Q3 projections of $210-220M and $0.17, so it’s no surprise the markets have responded with a 10+% bump to the company’s stock price.
When Infinera came on the scene with its PICs, it was late in the 10G game but they still managed to have an impact. With 100G in the longhaul, they started from the same point as everyone, and therefore they are having an easier time picking up marketshare. During Q2, they had three customers that represented 10% or more of the company’s revenue – one cable, one Tier 1, and one wholesale/enterprise carrier.
Going forward, it is in the metro and cloud connectivity markets that Infinera is now seeing the biggest opportunities. As is always the case, it is taking rather longer for reality to catch up to the hype than they might want it to, but they are still very bullish on it — especially with 100G coming to the Cloud Xpress product line and the metro aggregation product on schedule for launch by the end of the year.
Meanwhile, the Transmode deal still awaits. They can’t close it unless they get 90% of Transmode’s shareholders to vote in favor, and the company is being quite cautious about when or if the deal might close. Such things always seem to take forever to resolve over in Europe.
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