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Infinera Corporation Reports Second Quarter 2020 Financial ResultsĀ 

Date Announced: 06 Aug 2020

Sunnyvale, Calif. – Infinera Corporation (NASDAQ: INFN) today released financial results for its second quarter ended June 27, 2020.

  • Non-GAAP revenue for the quarter was $332.6 million compared to $331.4 million in the first quarter of 2020 and $306.9 million in the second quarter of 2019.
  • Non-GAAP gross margin for the quarter was 33.8% compared to 28.3% in the first quarter of 2020 and 30.7% in the second quarter of 2019. Non-GAAP operating margin for the quarter was (1.8)% compared to (9.4)% in the first quarter of 2020 and (12.3)% in the second quarter of 2019.
  • Non-GAAP net loss for the quarter was $(17.2) million, or $(0.09) per share, compared to a net loss of $(49.4) million, or $(0.27) per share, in the first quarter of 2020, and net loss of $(42.0) million, or $(0.24) per share, in the second quarter of 2019.

A further explanation of the use of non-GAAP financial information and a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure can be found at the end of this release.

“I am pleased with our execution in the quarter from a financial, operational and technical perspective, making advances on all fronts. We are managing the operational impacts of COVID-19 and are continuing to take the necessary measures to reduce costs and improve working capital utilization as macroeconomic uncertainty in our industry continues,” said Tom Fallon, Infinera CEO. “Importantly, I am encouraged by the opportunity we believe will be created by our ICE6 solution as the industry readies for a new technology cycle driven by ever increasing demand for bandwidth.”

Financial Outlook

Infinera’s outlook for the quarter ending September 26, 2020 is as follows:

  • GAAP revenue is expected to be $334 million +/- $10 million. Non-GAAP revenue is expected to be $335 million +/- $10 million.
  • GAAP gross margin is expected to be 30.5% +/- 150 bps. Non-GAAP gross margin is expected to be 34% +/- 150 bps.
  • GAAP operating expenses are expected to be $137 million +/- $1.5 million. Non-GAAP operating expenses are expected to be $116.5 million +/- $1.5 million.
  • GAAP operating margin is expected to be (11.0)% +/- 200 bps. Non-GAAP operating margin is expected to be (1.0)% +/- 200 bps 

Infinera announces CEO and Board transition plans

On August 5th, 2020, Infinera announced a succession plan to transition its leadership in the coming months.

Tom Fallon will be stepping down as Infinera’s CEO and David Heard, the Company’s Chief Operating Officer, will be succeeding him. This transition is expected to take place by the end of 2020 on a date to be determined.  Mr. Fallon, in his 17th year with Infinera and 11th as CEO, will remain on the Board of Directors.

“I couldn’t be more pleased with the Board’s selection of David as Infinera’s next CEO and I have the utmost confidence in his ability to successfully lead the company in its next phase of growth,” said Mr. Fallon, Infinera CEO.

“When David joined Infinera three years ago, our objective was to bring onboard a Chief Operating Officer who would be positioned to take over as CEO at the right time. David’s contributions since joining the company have been substantial, making us more scalable as he led us through a major acquisition, driving synergies through operational improvements, aligning our product and service portfolio and focusing our investments on the highest value areas for our customers and shareholders.”

Having served as Infinera’s COO since October 2018 and led a publicly traded company as CEO in the past, Mr. Heard has over 25 years of industry experience in executive leadership roles that span a wide breadth of technology companies, including JDS Uniphase, BigBand Networks (now part of CommScope), Somera (now part of Jabil), Tekelec (now part of Oracle), and Lucent Technologies (now part of Nokia). He holds an M.B.A. from the University of Dayton, an M.S. in management from the Stanford Graduate School of Business, where he was a Sloan Fellow, and a B.A. in production and operations management from Ohio State University.

In conjunction with this transition, Infinera is also announcing that Kambiz Hooshmand will be stepping down as Chairman of the Board on the same date as the CEO transition, while remaining on the Board. Mr. Hooshmand has served as Chairman since October 2010. George Riedel, a current member of the Board, will succeed Mr. Hooshmand as Chairman.

Contact


Infinera Corporation
140 Caspian Court
Sunnyvale
CA 94089-1016
USA
 
Main Phone: +1 (408) 572-5200

Sales Phone: +1 (408) 716-4877
 

E-mail: info@infinera.com

Web Site: www.infinera.com

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