Infinera Corporation Reports Third Quarter 2015 Financial Results
/EINPresswire.com/ -- SUNNYVALE, CA--(Marketwired - October 27, 2015) - Infinera Corporation (NASDAQ: INFN), provider of Intelligent Transport Networks, today released financial results for the third quarter of 2015 ended September 26, 2015. Infinera's financial results for the third quarter of 2015 include the operating results of Transmode from the date the acquisition closed on August 20, 2015.
GAAP financial results for the quarter were impacted by certain purchase accounting adjustments and one-time acquisition-related costs related to the Transmode acquisition. Additionally, GAAP results include non-cash stock-based compensation expenses and the amortization of debt discount on Infinera's convertible senior notes. The foregoing items have been excluded from Infinera's non-GAAP results.
GAAP revenue for the quarter was $232.5 million compared to $207.3 million in the second quarter of 2015 and $173.6 million in the third quarter of 2014.
GAAP gross margin for the quarter was 44.2% compared to 46.7% in the second quarter of 2015 and 43.4% in the third quarter of 2014. GAAP operating margin for the quarter was 6.1% compared to 8.0% in the second quarter of 2015 and 4.3% in the third quarter of 2014.
GAAP net income for the quarter was $8.5 million, or $0.06 per diluted share, compared to $17.9 million, or $0.13 per diluted share, in the second quarter of 2015, and $4.8 million, or $0.04 per diluted share, in the third quarter of 2014.
Non-GAAP revenue for the quarter was $233.2 million compared to $207.3 million in the second quarter of 2015 and $173.6 million in the third quarter of 2014.
Non-GAAP gross margin for the quarter was 47.5% compared to 47.4% in the second quarter of 2015 and 44.2% in the third quarter of 2014. Non-GAAP operating margin for the quarter was 14.4% compared to 13.0% in the second quarter of 2015 and 8.6% in the third quarter of 2014.
Non-GAAP net income for the quarter was $32.2 million, or $0.22 per diluted share, compared to $25.7 million, or $0.18 per diluted share, in the second quarter of 2015, and $14.2 million, or $0.11 per diluted share, in the third quarter of 2014.
A further explanation of the use of non-GAAP financial information and a reconciliation of the non-GAAP financial measures to the GAAP equivalents can be found at the end of this release.
"Our excellent third quarter results reflect continued strength across our core business, including growing Cloud Xpress revenues as well as the initial contribution from the new metro business. Adding the recently announced metro core and long haul interconnect products along with Transmode's suite of metro solutions enables Infinera to further enhance the superior experience we deliver to our customers," said Tom Fallon, Infinera's Chief Executive Officer. "As the most vertically integrated transport provider in the world, now armed with a broad end-to-end portfolio, Infinera is in a terrific position to continue to deliver differentiated financial results on both the top and bottom lines."
Conference Call Information
Infinera will host a conference call for analysts and investors to discuss its third quarter of 2015 results and its outlook for the fourth quarter of 2015 today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Interested parties may join the conference call by dialing 1-800-593-9940 (toll free) or 1-630-395-0029 (international), pass-code PIC. A live webcast of the conference call will also be accessible from the Investor Relations section of Infinera's website at www.infinera.com. Following the webcast, an archived version will be available on the website for 90 days. To hear the replay, parties in the United States and Canada should call 1-800-884-1527. International parties can access the replay at 1-203-369-3842.
About Infinera
Infinera (NASDAQ: INFN) provides Intelligent Transport Networks, enabling carriers, cloud operators, governments and enterprises to scale network bandwidth, accelerate service innovation and simplify optical network operations. Infinera's end-to-end packet-optical portfolio is designed for long-haul, subsea, datacenter interconnect and metro applications. Infinera's unique large scale photonic integrated circuits enable innovative optical networking solutions for the most demanding networks. To learn more about Infinera visit www.infinera.com, follow us on Twitter @Infinera and read our latest blog posts at blog.infinera.com.
Forward-Looking Statements
This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. Such forward-looking statements include, without limitation, Infinera's ability to provide a superior experience to its customers and Infinera's ability to continue to deliver differentiated financial results on both the top and bottom lines. Forward-looking statements can also be identified by forward-looking words such as "anticipated," "believed," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. These statements are based on information available to Infinera as of the date hereof and actual results could differ materially from those stated or implied due to risks and uncertainties. The risks and uncertainties that could cause Infinera's results to differ materially from those expressed or implied by such forward-looking statements include delays in the development and introduction of Infinera's products and market acceptance of these products; Infinera's ability to successfully integrate the Infinera and Transmode businesses; the effect that changes in product pricing or mix, and/or increases in component costs could have on Infinera's gross margin; Infinera's reliance on single-source suppliers; aggressive business tactics by Infinera's competitors; Infinera's ability to protect Infinera's intellectual property; claims by others that Infinera infringes their intellectual property; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery or demand of products; Infinera's ability to respond to rapid technological changes; and other risks and uncertainties detailed in Infinera's SEC filings from time to time. More information on potential factors that may impact Infinera's business are set forth in its Quarterly Report on Form 10-Q for the quarter ended on June 27, 2015 as filed with the SEC on July 31, 2015, as well as subsequent reports filed with or furnished to the SEC from time to time. These reports are available on Infinera's website at www.infinera.com and the SEC's website at www.sec.gov. Infinera assumes no obligation to, and does not currently intend to, update any such forward-looking statements.
Use of Non-GAAP Financial Information
In addition to disclosing financial measures prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain certain non-GAAP measures that exclude non-cash stock-based compensation expenses, acquisition-related costs, certain purchase accounting adjustments and amortization of debt discount on Infinera's convertible senior notes. Infinera believes these adjustments are appropriate to enhance an overall understanding of its underlying financial performance and also its prospects for the future and are considered by management for the purpose of making operational decisions. In addition, these results are the primary indicators management uses as a basis for its planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income, basic and diluted net income per share, gross margin or operating margin prepared in accordance with GAAP. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and are subject to limitations. For a description of these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measures, please see the section titled, "GAAP to Non-GAAP Reconciliations." Infinera anticipates disclosing forward-looking non-GAAP information in its conference call to discuss its third quarter 2015 results, including an estimate of certain non-GAAP financial measures for the fourth quarter of 2015 that excludes non-cash stock-based compensation expenses, acquisition-related costs, certain purchase accounting adjustments and amortization of debt discount on Infinera's convertible senior notes.
A copy of this press release can be found on the Investor Relations page of Infinera's website at www.infinera.com.
Infinera and the Infinera logo are trademarks or registered trademarks of Infinera Corporation. All other trademarks used or mentioned herein belong to their respective owners.
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Infinera Corporation
GAAP Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
----------------------------- -----------------------------
September 26, September 27, September 26, September 27,
2015 2014 2015 2014
-------------- -------------- -------------- --------------
Revenue:
Product $ 202,365 $ 147,178 $ 542,190 $ 413,784
Services 30,107 26,381 84,490 67,989
-------------- -------------- -------------- --------------
Total revenue 232,472 173,559 626,680 481,773
Cost of revenue:
Cost of product 117,154 86,703 306,151 251,047
Cost of
services 12,513 11,554 32,816 26,765
-------------- -------------- -------------- --------------
Total cost of
revenue 129,667 98,257 338,967 277,812
Gross profit 102,805 75,302 287,713 203,961
Operating
expenses:
Research and
development 45,466 35,051 128,144 96,135
Sales and
marketing 24,721 20,794 67,298 56,738
General and
administrative 18,358 11,977 46,324 36,612
-------------- -------------- -------------- --------------
Total
operating
expenses 88,545 67,822 241,766 189,485
Income from
operations 14,260 7,480 45,947 14,476
Other income
(expense), net:
Interest income 406 373 1,371 1,046
Interest
expense (3,014) (2,781) (8,851) (8,186)
Other gain
(loss), net (3,293) (24) 1,788 (1,017)
-------------- -------------- -------------- --------------
Total other
income
(expense),
net (5,901) (2,432) (5,692) (8,157)
Income before
income taxes 8,359 5,048 40,255 6,319
Provision for
(benefit from)
income taxes (151) 205 1,473 1,070
-------------- -------------- -------------- --------------
Net income $ 8,510 $ 4,843 $ 38,782 $ 5,249
============== ============== ============== ==============
Net income per
common share:
Basic $ 0.06 $ 0.04 $ 0.30 $ 0.04
============== ============== ============== ==============
Diluted $ 0.06 $ 0.04 $ 0.27 $ 0.04
============== ============== ============== ==============
Weighted average
shares used in
computing net
income per
common share:
Basic 134,834 124,378 131,007 122,953
============== ============== ============== ==============
Diluted 145,300 128,964 141,082 127,062
============== ============== ============== ==============
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Infinera Corporation
GAAP to Non-GAAP Reconciliations
(In thousands, except percentages and per share data)
(Unaudited)
Three Months
Ended
---------------------------------
September 26, June 27,
2015 2015
---------------- ----------------
Reconciliation of Revenue:
U.S. GAAP as reported $ 232,472 $ 207,346
Acquisition-related
deferred revenue
adjustment(1) 721 -
---------- ----------
Non-GAAP as adjusted $ 233,193 $ 207,346
========== ==========
Reconciliation of Gross
Profit:
U.S. GAAP as reported $ 102,805 44.2% $ 96,796 46.7%
Acquisition-related
deferred revenue
adjustment(1) 721 -
Stock-based compensation(2) 1,621 1,493
Amortization of acquired
intangible assets(3) 1,922 -
Acquisition-related
inventory step-up
expense(4) 3,620 -
---------- ----- ---------- -----
Non-GAAP as adjusted $ 110,689 47.5% $ 98,289 47.4%
========== ===== ========== =====
Reconciliation of Income
from Operations:
U.S. GAAP as reported $ 14,260 6.1% $ 16,530 8.0%
Acquisition-related
deferred revenue
adjustment(1) 721 -
Stock-based compensation(2) 8,451 8,209
Amortization of acquired
intangible assets(3) 2,608 -
Acquisition-related
inventory step-up
expense(4) 3,620 -
Acquisition-related
costs(5) 3,950 2,264
---------- ----- ---------- -----
Non-GAAP as adjusted $ 33,610 14.4% $ 27,003 13.0%
========== ===== ========== =====
Reconciliation of Net
Income:
U.S. GAAP as reported $ 8,510 $ 17,906
Acquisition-related
deferred revenue
adjustment(1) 721 -
Stock-based compensation(2) 8,451 8,209
Amortization of acquired
intangible assets(3) 2,608 -
Acquisition-related
inventory step-up
expense(4) 3,620 -
Acquisition-related
costs(5) 3,950 2,264
Acquisition-related forward
contract (gain) loss(6) 3,728 (4,782)
Amortization of debt
discount(7) 2,162 2,109
Income tax effects(8) (1,529) -
---------- ----------
Non-GAAP as adjusted $ 32,221 $ 25,706
========== ==========
Net Income per Common
Share - Basic:
U.S. GAAP as reported $ 0.06 $ 0.14
========== ==========
Non-GAAP as adjusted $ 0.24 $ 0.20
========== ==========
Net Income per Common
Share - Diluted:
U.S. GAAP as reported $ 0.06 $ 0.13
========== ==========
Non-GAAP as adjusted $ 0.22 $ 0.18
========== ==========
Weighted Average Shares
Used in Computing Net
Income per Common Share:
Basic 134,834 130,349
========== ==========
Diluted 145,300 140,642
========== ==========
Three
Months Nine Months
Ended Ended
--------------- ---------------------------------
September 27, September 26, September 27,
2014 2015 2014
--------------- ----------------- ---------------
Reconciliation of Revenue:
U.S. GAAP as reported $173,559 $ 626,680 $ 481,773
Acquisition-related
deferred revenue
adjustment(1) - 721 -
-------- ----------- ---------
Non-GAAP as adjusted $173,559 $ 627,401 $ 481,773
======== =========== =========
Reconciliation of Gross
Profit:
U.S. GAAP as reported $ 75,302 43.4% $ 287,713 45.9% $ 203,961 42.3%
Acquisition-related
deferred revenue
adjustment(1) - 721 -
Stock-based compensation(2) 1,491 4,357 4,135
Amortization of acquired
intangible assets(3) - 1,922 -
Acquisition-related
inventory step-up
expense(4) - 3,620 -
-------- ----- ----------- ----- --------- -----
Non-GAAP as adjusted $ 76,793 44.2% 298,333 47.6% $ 208,096 43.2%
======== ===== =========== ===== ========= =====
Reconciliation of Income
from Operations:
U.S. GAAP as reported $ 7,480 4.3% $ 45,947 7.3% $ 14,476 3.0%
Acquisition-related
deferred revenue
adjustment(1) - 721 -
Stock-based compensation(2) 7,371 23,868 20,847
Amortization of acquired
intangible assets(3) - 2,608 -
Acquisition-related
inventory step-up
expense(4) - 3,620 -
Acquisition-related
costs(5) - 6,676 -
-------- ----- ----------- ----- --------- -----
Non-GAAP as adjusted $ 14,851 8.6% 83,440 13.3% $ 35,323 7.3%
======== ===== =========== ===== ========= =====
Reconciliation of Net
Income:
U.S. GAAP as reported $ 4,843 $ 38,782 $ 5,249
Acquisition-related
deferred revenue
adjustment(1) - 721 -
Stock-based compensation(2) 7,371 23,868 20,847
Amortization of acquired
intangible assets(3) - 2,608 -
Acquisition-related
inventory step-up
expense(4) - 3,620 -
Acquisition-related
costs(5) - 6,676 -
Acquisition-related forward
contract (gain) loss(6) - (1,054) -
Amortization of debt
discount(7) 1,956 6,328 5,724
Income tax effects(8) - (1,529) -
-------- ----------- ---------
Non-GAAP as adjusted $ 14,170 $ 80,020 $ 31,820
======== =========== =========
Net Income per Common
Share - Basic:
U.S. GAAP as reported $ 0.04 $ 0.30 $ 0.04
======== =========== =========
Non-GAAP as adjusted $ 0.11 $ 0.61 $ 0.26
======== =========== =========
Net Income per Common
Share - Diluted:
U.S. GAAP as reported $ 0.04 $ 0.27 $ 0.04
======== =========== =========
Non-GAAP as adjusted $ 0.11 $ 0.57 $ 0.25
======== =========== =========
Weighted Average Shares
Used in Computing Net
Income per Common Share:
Basic 124,378 131,007 122,953
======== =========== =========
Diluted 128,964 141,082 127,062
======== =========== =========
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(1) Business combination accounting principles require Infinera to write
down to fair value its maintenance support contracts assumed in the
Transmode acquisition. The revenue for these support contracts is
deferred and typically recognized over a one year period, so Infinera's
GAAP revenue for the one year period after the acquisition will not
reflect the full amount of revenue that would have been reported if the
acquired deferred revenue was not written down to fair value. The non-
GAAP adjustment eliminates the effect of the deferred revenue write-
down. Management believes these adjustments to the revenue from these
support contracts are useful to investors as an additional means to
reflect revenue trends of Infinera's business.
(2) Stock-based compensation expense is calculated in accordance with the
fair value recognition provisions of Financial Accounting Standards
Board Accounting Standards Codification Topic 718, Compensation-Stock
Compensation effective January 1, 2006. The following table summarizes
the effects of stock-based compensation related to employees and non-
employees (in thousands):
Three Months Ended Nine Months Ended
-------------------------------- ---------------------
September September September September
26, June 27, 27, 26, 27,
2015 2015 2014 2015 2014
---------- ---------- ---------- ---------- ----------
Cost of revenue $ 645 $ 613 $ 492 $ 1,740 $ 1,421
Research and
development 2,788 2,817 2,270 8,183 6,488
Sales and marketing 2,131 2,070 1,982 5,922 5,517
General and
administration 1,911 1,829 1,628 5,406 4,707
---------- ---------- ---------- ---------- ----------
7,475 7,329 6,372 21,251 18,133
Cost of revenue -
amortization from
balance sheet* 976 880 999 2,617 2,714
---------- ---------- ---------- ---------- ----------
Total stock-based
compensation expense $ 8,451 $ 8,209 $ 7,371 $ 23,868 $ 20,847
========== ========== ========== ========== ==========
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* Stock-based compensation expense deferred to inventory and deferred
inventory costs in prior periods and recognized in the current period.
(3) Amortization of acquisition-related intangible assets consists of
amortization of developed technology, trade names, and customer
relationships acquired in connection with the Transmode acquisition.
U.S. GAAP accounting requires that acquired intangible assets are
recorded at fair value and amortized over their useful lives. As this
amortization is non-cash, Infinera has excluded the effect in
calculating its non-GAAP operating expenses, gross margin and net income
measures. Management believes the amortization of acquired intangible
assets are not indicative of ongoing operating performance and their
exclusion provide a better indication of Infinera's underlying business
performance.
(4) Business combination accounting principles require Infinera to measure
acquired inventory at fair value. The fair value of inventory reflects
the acquired company's cost of manufacturing plus a portion of the
expected profit margin. The non-GAAP adjustment to Infinera's cost of
sales excludes the amortization of the step-up in carrying value for
units sold in the quarter. Management believes the adjustment is useful
to investors as an additional means to reflect cost of sales and gross
margin trends of Infinera's business.
(5) Acquisition-related costs related to Transmode acquisition, which closed
during the third quarter of 2015, include legal, financial and other
professional fees incurred in connection with the transaction. These
amounts have been adjusted in arriving at Infinera's non-GAAP results
because management believes that these expenses are non-recurring, not
indicative of ongoing operating performance and their exclusion provides
a better indication of Infinera's underlying business performance.
(6) In April 2015, Infinera entered into a foreign currency forward contract
and in July 2015, Infinera entered into a series of foreign currency
exchange option contracts to hedge currency exposures associated with
the cash portion of the offer to acquire Transmode. The forward contract
and option contracts were subsequently closed during the third quarter
of 2015. The net change in the fair value of the forward contract and
option contracts impacted Infinera's financial statements for the
current interim reporting period. Management has excluded the impact of
these gains and losses in arriving at Infinera's non-GAAP results
because they are non-recurring and management believes that these gains
are not indicative of ongoing operating performance.
(7) Under GAAP, certain convertible debt instruments that may be settled in
cash on conversion are required to be separately accounted for as
liability (debt) and equity (conversion option) components of the
instrument in a manner that reflects the issuer's non-convertible debt
borrowing rate. Accordingly, for GAAP purposes, Infinera is required to
amortize as a debt discount an amount equal to the fair value of the
conversion option that was recorded in equity as interest expense on its
$150 million 1.75% convertible debt issuance in May 2013 over the term
of the notes. Interest expense has been adjusted in arriving at
Infinera's non-GAAP results because management believes that this non-
cash expense is not indicative of ongoing operating performance and
provides a better indication of Infinera's underlying business
performance.
(8) The difference between the GAAP and non-GAAP tax rates were due to the
net tax effects of the purchase accounting adjustments related to the
Transmode acquisition, which closed during the third quarter of 2015.
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Infinera Corporation
Condensed Consolidated Balance Sheets
(In thousands, except par values)
(Unaudited)
September 26, December 27,
2015 2014
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 161,103 $ 86,495
Short-term investments 126,218 239,628
Accounts receivable, net of allowance for
doubtful accounts of $630 in 2015 and $38 in
2014 141,586 154,596
Inventory 169,875 146,500
Prepaid expenses and other current assets 31,780 24,636
-------------- --------------
Total current assets 630,562 651,855
Property, plant and equipment, net 98,720 81,566
Intangible assets, net 162,082 361
Goodwill 190,119 -
Long-term investments 51,422 59,233
Cost-method investment 14,500 14,500
Long-term restricted cash 5,319 5,460
Other non-current assets 6,867 5,041
-------------- --------------
Total assets $ 1,159,591 $ 818,016
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 69,983 $ 61,533
Accrued expenses 35,704 26,441
Accrued compensation and related benefits 40,586 38,795
Accrued warranty 17,802 12,241
Deferred revenue 31,411 35,321
-------------- --------------
Total current liabilities 195,486 174,331
Long-term debt, net 123,222 116,894
Accrued warranty, non-current 18,939 14,799
Deferred revenue, non-current 15,368 10,758
Other long-term liabilities 53,661 19,327
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value
Authorized shares - 25,000 and no shares
issued and outstanding
- -
Common stock, $0.001 par value
Authorized shares - 500,000 as of September
26, 2015 and December 27, 2014
Issued and outstanding shares - 139,785 as of
September 26, 2015 and 126,160 as of
December 27, 2014 140 126
Additional paid-in capital 1,289,087 1,077,225
Accumulated other comprehensive income (loss) 360 (4,618)
Accumulated deficit (552,044) (590,826)
-------------- --------------
Total Infinera stockholders' equity 737,543 481,907
-------------- --------------
Noncontrolling interest 15,372 -
-------------- --------------
Total stockholder's equity 752,915 481,907
-------------- --------------
Total liabilities and stockholders' equity $ 1,159,591 $ 818,016
============== ==============
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Infinera Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
-----------------------------
September 26, September 27,
2015 2014
-------------- --------------
Cash Flows from Operating Activities:
Net income $ 38,782 $ 5,249
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 22,094 19,340
Amortization of debt discount and issuance
costs 6,873 6,217
Amortization of premium on investments 2,405 2,720
Realized gain from forward contract (1,053) -
Stock-based compensation expense 23,868 20,847
Other loss 605 15
Changes in assets and liabilities:
Accounts receivable 28,838 (35,463)
Inventory (8,901) (9,015)
Prepaid expenses and other assets (6,058) (4,965)
Accounts payable (2,339) 11,009
Accrued liabilities and other expenses (7,196) 657
Deferred revenue 700 (4,272)
Accrued warranty 8,742 4,898
-------------- --------------
Net cash provided by operating activities 107,360 17,237
Cash Flows from Investing Activities:
Purchase of available-for-sale investments (126,940) (214,272)
Acquisition of business, net of cash acquired (144,038) -
Realized gain from forward contract for
business acquisition 1,053 -
Purchase of cost-method investment - (5,500)
Proceeds from sale of available-for-sale
investments 67,303 17,876
Proceeds from maturities and sales of
investments 178,717 168,137
Purchase of property and equipment (26,710) (14,364)
Change in restricted cash 127 (320)
-------------- --------------
Net cash used in investing activities (50,488) (48,443)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock 23,433 19,683
Minimum tax withholding paid on behalf of
employees for net share settlement (5,043) (1,846)
-------------- --------------
Net cash provided by financing activities 18,390 17,837
Effect of exchange rate changes on cash (654) (97)
Net change in cash and cash equivalents 74,608 (13,466)
Cash and cash equivalents at beginning of
period 86,495 124,330
-------------- --------------
Cash and cash equivalents at end of period $ 161,103 $ 110,864
============== ==============
Supplemental disclosures of cash flow
information:
Cash paid for income taxes, net of refunds $ 2,301 $ 1,056
Cash paid for interest $ 1,313 $ 1,313
Supplemental schedule of non-cash investing
and financing activities:
Transfer of inventory to fixed assets $ 5,861 $ 1,838
Common stock issued in connection with
acquisition $ 169,507 $ -
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Infinera Corporation
Supplemental Financial Information
(Unaudited)
----------------------------------------------------------------------------
Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
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Revenue ($ Mil) $139.1 $142.8 $165.4 $173.6 $186.3 $186.9 $207.3 $232.5
GAAP Gross Margin % 40.2% 40.9% 42.5% 43.4% 45.3% 47.2% 46.7% 44.2%
Non-GAAP Gross
Margin % (1) 41.4% 41.8% 43.3% 44.2% 46.1% 47.8% 47.4% 47.5%
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Revenue
Composition:
Domestic % 54% 78% 82% 70% 58% 68% 75% 68%
International % 46% 22% 18% 30% 42% 32% 25% 32%
Customers >10% of
Revenue 1 2 2 1 1 2 3 2
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Cash Related
Information:
Cash from (Used in)
Operations ($ Mil) $ 25.8 $(15.4)$ 10.3 $ 22.3 $ 18.7 $ 19.8 $ 55.0 $ 32.5
Capital
Expenditures ($
Mil) $ 7.5 $ 5.6 $ 4.4 $ 4.4 $ 8.8 $ 7.4 $ 8.7 $ 10.6
Depreciation &
Amortization ($
Mil) $ 6.0 $ 6.3 $ 6.5 $ 6.5 $ 6.6 $ 6.6 $ 6.3 $ 9.2
DSO's 66 68 66 71 76 64 48 55
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Inventory Metrics:
Raw Materials ($
Mil) $ 14.3 $ 13.2 $ 11.2 $ 11.6 $ 15.2 $ 22.4 $ 30.2 $ 24.2
Work in Process ($
Mil) $ 49.2 $ 47.8 $ 40.6 $ 44.4 $ 50.0 $ 45.9 $ 43.9 $ 48.5
Finished Goods ($
Mil) $ 60.2 $ 65.5 $ 79.1 $ 74.8 $ 81.3 $ 88.9 $ 83.1 $ 97.2
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Total Inventory ($
Mil) $123.7 $126.5 $130.9 $130.8 $146.5 $157.2 $157.2 $169.9
Inventory Turns (2) 2.6 2.6 2.9 3.0 2.7 2.5 2.8 2.9
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Worldwide Headcount 1,318 1,346 1,396 1,456 1,495 1,530 1,598 1,978
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(1) Non-GAAP adjustments include non-cash stock-based compensation expense,
certain purchase accounting adjustments and amortization of acquired
intangible assets. For a description of this non-GAAP financial measure,
please see the section titled, "GAAP to Non-GAAP Reconciliations" of
this press release for a reconciliation to the most directly comparable
GAAP financial measures.
(2) Infinera calculates non-GAAP inventory turns as annualized non-GAAP cost
of revenue before adjustments for non-cash stock-based compensation
expense and certain purchase accounting adjustments, divided by the
average inventory for the quarter.
Contacts:
Media:
Anna Vue
Tel. +1 (916) 595-8157
avue@infinera.com
Investors:
Jeff Hustis
Tel. +1 (408) 213-7150
jhustis@infinera.com
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