Infinera Corporation (NASDAQ: INFN) today released financial
results for its second quarter ended June 29, 2024.
GAAP revenue for the quarter was $342.7 million compared to
$306.9 million in the first quarter of 2024 and $376.2 million
in the second quarter of 2023.
GAAP gross margin for the quarter was 39.6% compared to 36.0% in
the first quarter of 2024 and 38.0% in the second quarter of 2023.
GAAP operating margin for the quarter was (8.7)% compared to
(14.0)% in the first quarter of 2024 and (3.8)% in the second
quarter of 2023.
GAAP net loss for the quarter was $(48.3) million, or $(0.21)
per diluted share, compared to net loss of $(61.4) million, or
$(0.27) per diluted share, in the first quarter of 2024, and net
loss of $(20.3) million, or $(0.09) per diluted share, in the
second quarter of 2023.
Non-GAAP gross margin for the quarter was 40.3% compared to
36.6% in the first quarter of 2024 and 39.3% in the second quarter
of 2023. Non-GAAP operating margin for the quarter was (1.3)%
compared to (8.4)% in the first quarter of 2024 and 2.8% in the
second quarter of 2023.
Non-GAAP net loss for the quarter was $(14.0) million, or
$(0.06) per diluted share, compared to non-GAAP net loss of $(38.3)
million, or $(0.17) per diluted share, in the first quarter of
2024, and non-GAAP net loss of $(0.7) million, or $(0.00) per
diluted share, in the second quarter of 2023.
We ended the quarter with cash, cash equivalents and restricted
cash at $115.7 million.
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 press release.
Infinera CEO, David Heard said “I am pleased with our second
quarter results with revenue, gross margin and operating margin all
above the midpoint of our outlook range. While the timing and pace
of customer demand recovery remain uncertain, we continued our
design-win momentum across our optical networking product portfolio
in the quarter, with bookings up both sequentially and on a
year-over-year basis. We ended Q2 with a book-to-bill ratio above
1.”
“We remain excited about our pending combination with Nokia.
Customers see value in accelerating the pace of innovation to lower
both the cost per bit and power per bit required to stay ahead of
the capacity demands fueled by high-bandwidth usage applications
including AI. Together, the combined business would have a
broadened portfolio, greater scale and geographic reach, while
leveraging vertically integrated optical semiconductor technologies
developed here in the U.S.”
Pending Merger with Nokia
On June 27, 2024, Infinera, Nokia Corporation, a company
incorporated under the laws of the Republic of Finland (“Nokia”)
and Neptune of America Corporation, a Delaware corporation and
wholly owned subsidiary of Nokia (“Merger Sub”) entered into an
Agreement and Plan of Merger (as it may be amended, modified or
waived from time to time, the “Merger Agreement”) that provides for
Merger Sub to merge with and into Infinera (the “Merger”), with
Infinera surviving the Merger as a wholly owned subsidiary of
Nokia. The transaction is expected to close in the first half of
2025.
In light of the proposed transaction with Nokia, and as is
customary during the pendency of an acquisition, Infinera will not
be providing financial guidance during the pendency of the
acquisition.
Second Quarter
2024 Investor Slides to be Made Available
Online
Investor slides reviewing Infinera's second quarter of 2024
financial results will be furnished to the U.S. Securities and
Exchange Commission (SEC) on a Current Report on Form 8-K and
published on Infinera's Investor Relations website at
investors.infinera.com.
Contacts:
Media:Anna VueTel. +1 (916) 595-8157avue@infinera.com
Investors:Amitabh Passi, Head of Investor RelationsTel. +1 (669)
295-1489apassi@infinera.com
About Infinera
Infinera is a global supplier of innovative open optical
networking solutions and advanced optical semiconductors that
enable carriers, cloud operators, governments, and enterprises to
scale network bandwidth, accelerate service innovation, and
automate network operations. Infinera solutions deliver
industry-leading economics and performance in long-haul, submarine,
data center interconnect, and metro transport applications. To
learn more about Infinera, visit www.infinera.com, follow us on X
and LinkedIn, and subscribe for updates.
Infinera and the Infinera logo are registered trademarks of
Infinera Corporation.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements generally relate to future events or Infinera's future
financial or operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "should," "will," and "would" or the negative of these words
or similar terms or expressions that concern Infinera's
expectations, strategy, priorities, plans or intentions.
Forward-looking statements in this press release include, but are
not limited to, statements regarding Infinera's future business
plans, strategy and growth opportunities; statements about design
wins; expectations regarding industry demand and key industry
trends; expectations regarding Infinera’s future performance; and
statements related to the Merger, including the timing of
completion of the Merger and the future performance and benefits of
the combined business.
These forward-looking statements are based on estimates and
information available to Infinera as of the date hereof and are not
guarantees of actual or future performance; 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 statements
related to the Merger, including whether the Merger may not be
completed or completion may be delayed, and if the Merger Agreement
is terminated, there may be a required payment of a significant
termination fee by either party; the receipt of necessary approvals
to complete the Merger; the possibility that due to the Merger, and
uncertainty regarding the Merger, Infinera’s customers, suppliers
or strategic partners may delay or defer entering into contracts or
making other decisions concerning Infinera; the significance and
timing of costs related to the Merger; the impact on us of
litigation or other stockholder action related to the Merger; the
effects on us and our stockholders if the Merger is not completed;
demand growth for additional network capacity and the level and
timing of customer capital spending and excess inventory held by
customers beyond normalized levels; delays in the development,
introduction or acceptance of new products or in releasing
enhancements to existing products; aggressive business tactics by
Infinera’s competitors and new entrants and Infinera's ability to
compete in a highly competitive market; supply chain and logistics
issues and their impact on our business, and Infinera's dependency
on sole source, limited source or high-cost suppliers; dependence
on a small number of key customers; product performance problems;
the complexity of Infinera's manufacturing process; Infinera's
ability to identify, attract, upskill and retain qualified
personnel; challenges with our contract manufacturers and other
third-party partners; the effects of customer and supplier
consolidation; dependence on third-party service partners;
Infinera’s ability to respond to rapid technological changes;
failure to accurately forecast Infinera's manufacturing
requirements or customer demand; the effects of public health
emergencies; Infinera’s future capital needs and its ability to
generate the cash flow or otherwise secure the capital necessary to
meet such capital needs; the effect of global and regional economic
conditions on Infinera’s business, including effects on purchasing
decisions by customers; the adverse impact inflation and higher
interest rates may have on Infinera by increasing costs beyond what
it can recover through price increases; restrictions to our
operations resulting from loan or other credit agreements; the
impacts of any restructuring plans or other strategic efforts on
our business; Infinera’s international sales and operations; the
impacts of foreign currency fluctuations; the effective tax rate of
Infinera, which may increase or fluctuate; potential dilution from
the issuance of additional shares of common stock in connection
with the conversion of Infinera's convertible senior notes;
Infinera’s ability to protect its intellectual property; claims by
others that Infinera infringes on their intellectual property
rights; security incidents, such as data breaches or cyber-attacks;
Infinera's ability to comply with various rules and regulations,
including with respect to export control and trade compliance,
environmental, social, governance, privacy and data protection
matters; events that are outside of Infinera's control, such as
natural disasters, acts of war or terrorism, or other catastrophic
events that could harm Infinera's operations; Infinera’s ability to
remediate its recently disclosed material weaknesses in internal
control over financial reporting in a timely and effective manner,
and other risks and uncertainties detailed in Infinera’s SEC
filings from time to time; and statements of assumptions underlying
any of the foregoing. More information on potential factors that
may impact Infinera’s business are set forth in Infinera’s periodic
reports filed with the SEC, including its Annual Report on Form
10-K for the year ended December 30, 2023, filed with the SEC on
May 17, 2024, as well as subsequent reports filed with or furnished
to the SEC from time to time. These SEC filings 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 financial measures that exclude in certain cases
stock-based compensation expense, amortization of acquired
intangible assets, restructuring and other related costs, warehouse
fire recovery, merger-related charges, foreign exchange (gains)
losses, net, and income tax effects. 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, the non-GAAP financial measures
presented in this press release 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
gross margin, operating expenses, operating margin, net income
(loss) and net income (loss) per common share 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 table titled “GAAP to Non-GAAP
Reconciliations” and related footnotes.
Infinera CorporationCondensed
Consolidated Statements of Operations(In
thousands, except per share
data)(Unaudited)
|
Three months ended |
|
Six months ended |
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
Revenue: |
|
|
|
|
|
|
|
Product |
$ |
266,470 |
|
|
$ |
299,624 |
|
|
$ |
501,794 |
|
|
$ |
614,444 |
|
Services |
|
76,269 |
|
|
|
76,604 |
|
|
|
147,867 |
|
|
|
153,859 |
|
Total revenue |
|
342,739 |
|
|
|
376,228 |
|
|
|
649,661 |
|
|
|
768,303 |
|
Cost of revenue: |
|
|
|
|
|
|
|
Cost of product |
|
167,290 |
|
|
|
188,166 |
|
|
|
323,555 |
|
|
|
386,840 |
|
Cost of services |
|
39,152 |
|
|
|
41,733 |
|
|
|
79,395 |
|
|
|
84,680 |
|
Amortization of intangible assets |
|
— |
|
|
|
3,537 |
|
|
|
— |
|
|
|
7,093 |
|
Restructuring and other related costs |
|
703 |
|
|
|
— |
|
|
|
676 |
|
|
|
— |
|
Total cost of revenue |
|
207,145 |
|
|
|
233,436 |
|
|
|
403,626 |
|
|
|
478,613 |
|
Gross profit |
|
135,594 |
|
|
|
142,792 |
|
|
|
246,035 |
|
|
|
289,690 |
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
74,678 |
|
|
|
79,346 |
|
|
|
151,940 |
|
|
|
160,388 |
|
Sales and marketing |
|
41,897 |
|
|
|
41,624 |
|
|
|
82,642 |
|
|
|
83,331 |
|
General and administrative |
|
34,107 |
|
|
|
31,159 |
|
|
|
66,954 |
|
|
|
60,394 |
|
Amortization of intangible assets |
|
2,256 |
|
|
|
3,523 |
|
|
|
4,512 |
|
|
|
7,112 |
|
Merger-related charges |
|
8,517 |
|
|
|
— |
|
|
|
8,517 |
|
|
|
— |
|
Restructuring and other related costs |
|
3,948 |
|
|
|
1,431 |
|
|
|
4,262 |
|
|
|
2,221 |
|
Total operating expenses |
|
165,403 |
|
|
|
157,083 |
|
|
|
318,827 |
|
|
|
313,446 |
|
Loss from operations |
|
(29,809 |
) |
|
|
(14,291 |
) |
|
|
(72,792 |
) |
|
|
(23,756 |
) |
Other income (expense),
net: |
|
|
|
|
|
|
|
Interest income |
|
793 |
|
|
|
717 |
|
|
|
1,915 |
|
|
|
1,188 |
|
Interest expense |
|
(8,163 |
) |
|
|
(7,387 |
) |
|
|
(16,792 |
) |
|
|
(14,187 |
) |
Other gain (loss), net |
|
(11,183 |
) |
|
|
7,170 |
|
|
|
(17,395 |
) |
|
|
18,126 |
|
Total other income (expense), net |
|
(18,553 |
) |
|
|
500 |
|
|
|
(32,272 |
) |
|
|
5,127 |
|
Loss before income taxes |
|
(48,362 |
) |
|
|
(13,791 |
) |
|
|
(105,064 |
) |
|
|
(18,629 |
) |
(Benefit from) provision for
income taxes |
|
(75 |
) |
|
|
6,472 |
|
|
|
4,618 |
|
|
|
10,044 |
|
Net loss |
$ |
(48,287 |
) |
|
$ |
(20,263 |
) |
|
$ |
(109,682 |
) |
|
$ |
(28,673 |
) |
Net loss per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.21 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.13 |
) |
Diluted |
$ |
(0.21 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.13 |
) |
Weighted average shares used
in computing net loss per common share: |
|
|
|
|
|
|
|
Basic |
|
234,349 |
|
|
|
225,922 |
|
|
|
232,941 |
|
|
|
224,159 |
|
Diluted |
|
234,349 |
|
|
|
225,922 |
|
|
|
232,941 |
|
|
|
224,159 |
|
|
Infinera CorporationGAAP to Non-GAAP
Reconciliations(In thousands, except
percentages)(Unaudited)
|
|
Three months ended |
|
Six months ended |
|
|
June 29, 2024 |
|
|
|
March 30, 2024 |
|
|
|
July 1, 2023 |
|
|
|
June 29, 2024 |
|
|
|
July 1, 2023 |
|
|
Reconciliation of
Gross Profit and Gross Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
135,594 |
|
|
39.6 |
% |
|
$ |
110,441 |
|
|
36.0 |
% |
|
$ |
142,792 |
|
|
38.0 |
% |
|
$ |
246,035 |
|
|
37.9 |
% |
|
$ |
289,690 |
|
|
37.7 |
% |
Stock-based compensation
expense(1) |
|
|
1,777 |
|
|
0.5 |
% |
|
|
1,893 |
|
|
0.6 |
% |
|
|
2,881 |
|
|
0.8 |
% |
|
|
3,670 |
|
|
0.5 |
% |
|
|
5,157 |
|
|
0.7 |
% |
Amortization of acquired
intangible assets(2) |
|
|
— |
|
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
3,537 |
|
|
0.9 |
% |
|
|
— |
|
|
— |
% |
|
|
7,093 |
|
|
0.9 |
% |
Restructuring and other
related costs(3) |
|
|
703 |
|
|
0.2 |
% |
|
|
(27 |
) |
|
(0.0 |
)% |
|
|
— |
|
|
— |
% |
|
|
676 |
|
|
0.1 |
% |
|
|
— |
|
|
— |
% |
Warehouse fire
recovery(4) |
|
|
— |
|
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
(1,475 |
) |
|
(0.4 |
)% |
|
|
— |
|
|
— |
% |
|
|
(1,985 |
) |
|
(0.3 |
)% |
Non-GAAP as adjusted |
|
$ |
138,074 |
|
|
40.3 |
% |
|
$ |
112,307 |
|
|
36.6 |
% |
|
$ |
147,735 |
|
|
39.3 |
% |
|
$ |
250,381 |
|
|
38.5 |
% |
|
$ |
299,955 |
|
|
39.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
165,403 |
|
|
|
|
$ |
153,424 |
|
|
|
|
$ |
157,083 |
|
|
|
|
$ |
318,827 |
|
|
|
|
$ |
313,446 |
|
|
|
Stock-based compensation
expense(1) |
|
|
8,024 |
|
|
|
|
|
12,638 |
|
|
|
|
|
15,116 |
|
|
|
|
|
20,662 |
|
|
|
|
|
28,491 |
|
|
|
Amortization of acquired
intangible assets(2) |
|
|
2,256 |
|
|
|
|
|
2,256 |
|
|
|
|
|
3,523 |
|
|
|
|
|
4,512 |
|
|
|
|
|
7,112 |
|
|
|
Restructuring and other
related costs(3) |
|
|
3,948 |
|
|
|
|
|
314 |
|
|
|
|
|
1,431 |
|
|
|
|
|
4,262 |
|
|
|
|
|
2,221 |
|
|
|
Merger-related charges(5) |
|
|
8,517 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
8,517 |
|
|
|
|
|
— |
|
|
|
Non-GAAP as adjusted |
|
$ |
142,658 |
|
|
|
|
$ |
138,216 |
|
|
|
|
$ |
137,013 |
|
|
|
|
$ |
280,874 |
|
|
|
|
$ |
275,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income (Loss) from Operations and Operating Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
(29,809 |
) |
|
(8.7 |
)% |
|
$ |
(42,983 |
) |
|
(14.0 |
)% |
|
$ |
(14,291 |
) |
|
(3.8 |
)% |
|
$ |
(72,792 |
) |
|
(11.2 |
)% |
|
$ |
(23,756 |
) |
|
(3.1 |
)% |
Stock-based compensation
expense(1) |
|
|
9,801 |
|
|
2.8 |
% |
|
|
14,531 |
|
|
4.8 |
% |
|
|
17,997 |
|
|
4.7 |
% |
|
|
24,332 |
|
|
3.7 |
% |
|
|
33,648 |
|
|
4.5 |
% |
Amortization of acquired
intangible assets(2) |
|
|
2,256 |
|
|
0.7 |
% |
|
|
2,256 |
|
|
0.7 |
% |
|
|
7,060 |
|
|
1.9 |
% |
|
|
4,512 |
|
|
0.7 |
% |
|
|
14,205 |
|
|
1.8 |
% |
Restructuring and other
related costs(3) |
|
|
4,651 |
|
|
1.4 |
% |
|
|
287 |
|
|
0.1 |
% |
|
|
1,431 |
|
|
0.4 |
% |
|
|
4,938 |
|
|
0.8 |
% |
|
|
2,221 |
|
|
0.3 |
% |
Warehouse fire
recovery(4) |
|
|
— |
|
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
(1,475 |
) |
|
(0.4 |
)% |
|
|
— |
|
|
— |
% |
|
|
(1,985 |
) |
|
(0.3 |
)% |
Merger-related charges(5) |
|
|
8,517 |
|
|
2.5 |
% |
|
|
— |
|
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
8,517 |
|
|
1.3 |
% |
|
|
— |
|
|
— |
% |
Non-GAAP as adjusted |
|
$ |
(4,584 |
) |
|
(1.3 |
)% |
|
$ |
(25,909 |
) |
|
(8.4 |
)% |
|
$ |
10,722 |
|
|
2.8 |
% |
|
$ |
(30,493 |
) |
|
(4.7 |
)% |
|
$ |
24,333 |
|
|
3.2 |
% |
|
|
Three months ended |
|
Six months ended |
|
|
June 29, 2024 |
|
|
|
March 30, 2024 |
|
|
|
July 1, 2023 |
|
|
|
June 29, 2024 |
|
|
|
July 1, 2023 |
Reconciliation of Net
Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
(48,287 |
) |
|
|
|
$ |
(61,395 |
) |
|
|
|
$ |
(20,263 |
) |
|
|
|
$ |
(109,682 |
) |
|
|
|
$ |
(28,673 |
) |
Stock-based compensation
expense(1) |
|
|
9,801 |
|
|
|
|
|
14,531 |
|
|
|
|
|
17,997 |
|
|
|
|
|
24,332 |
|
|
|
|
|
33,648 |
|
Amortization of acquired
intangible assets(2) |
|
|
2,256 |
|
|
|
|
|
2,256 |
|
|
|
|
|
7,060 |
|
|
|
|
|
4,512 |
|
|
|
|
|
14,205 |
|
Restructuring and other
related costs(3) |
|
|
4,651 |
|
|
|
|
|
287 |
|
|
|
|
|
1,431 |
|
|
|
|
|
4,938 |
|
|
|
|
|
2,221 |
|
Warehouse fire
recovery(4) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(1,475 |
) |
|
|
|
|
— |
|
|
|
|
|
(1,985 |
) |
Merger-related charges(5) |
|
|
8,517 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
8,517 |
|
|
|
|
|
— |
|
Foreign exchange (gains)
losses, net(6) |
|
|
11,690 |
|
|
|
|
|
6,448 |
|
|
|
|
|
(8,047 |
) |
|
|
|
|
18,138 |
|
|
|
|
|
(17,430 |
) |
Income tax effects(7) |
|
|
(2,604 |
) |
|
|
|
|
(383 |
) |
|
|
|
|
2,567 |
|
|
|
|
|
(2,987 |
) |
|
|
|
|
2,966 |
|
Non-GAAP as adjusted |
|
$ |
(13,976 |
) |
|
|
|
$ |
(38,256 |
) |
|
|
|
$ |
(730 |
) |
|
|
|
$ |
(52,232 |
) |
|
|
|
$ |
4,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Used in Computing GAAP Net Income (Loss) per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
234,349 |
|
|
|
|
|
231,533 |
|
|
|
|
|
225,922 |
|
|
|
|
|
232,941 |
|
|
|
|
|
224,159 |
|
Diluted(8) |
|
|
234,349 |
|
|
|
|
|
231,533 |
|
|
|
|
|
225,922 |
|
|
|
|
|
232,941 |
|
|
|
|
|
224,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Used in Computing Non-GAAP Net Income (Loss) per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
234,349 |
|
|
|
|
|
231,533 |
|
|
|
|
|
225,922 |
|
|
|
|
|
232,941 |
|
|
|
|
|
224,159 |
|
Diluted(9) |
|
|
234,349 |
|
|
|
|
|
231,533 |
|
|
|
|
|
225,922 |
|
|
|
|
|
232,941 |
|
|
|
|
|
228,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA
(10): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
(loss) |
|
$ |
(13,976 |
) |
|
|
|
$ |
(38,256 |
) |
|
|
|
$ |
(730 |
) |
|
|
|
$ |
(52,232 |
) |
|
|
|
$ |
4,952 |
|
Add: Interest expense,
net |
|
|
7,370 |
|
|
|
|
|
7,507 |
|
|
|
|
|
6,670 |
|
|
|
|
|
14,877 |
|
|
|
|
|
12,999 |
|
Less: Other gain (loss),
net |
|
|
507 |
|
|
|
|
|
236 |
|
|
|
|
|
(877 |
) |
|
|
|
|
743 |
|
|
|
|
|
696 |
|
Add: Income tax effects |
|
|
2,529 |
|
|
|
|
|
5,076 |
|
|
|
|
|
3,904 |
|
|
|
|
|
7,605 |
|
|
|
|
|
7,078 |
|
Add: Depreciation |
|
|
13,285 |
|
|
|
|
|
13,189 |
|
|
|
|
|
12,739 |
|
|
|
|
|
26,474 |
|
|
|
|
|
25,196 |
|
Non-GAAP as
adjusted |
|
$ |
8,701 |
|
|
|
|
$ |
(12,720 |
) |
|
|
|
$ |
23,460 |
|
|
|
|
$ |
(4,019 |
) |
|
|
|
$ |
49,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per
Common Share: GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.21 |
) |
|
|
|
$ |
(0.27 |
) |
|
|
|
$ |
(0.09 |
) |
|
|
|
$ |
(0.47 |
) |
|
|
|
$ |
(0.13 |
) |
Diluted(8) |
|
$ |
(0.21 |
) |
|
|
|
$ |
(0.27 |
) |
|
|
|
$ |
(0.09 |
) |
|
|
|
$ |
(0.47 |
) |
|
|
|
$ |
(0.13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per
Common Share: Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.06 |
) |
|
|
|
$ |
(0.17 |
) |
|
|
|
$ |
(0.00 |
) |
|
|
|
$ |
(0.22 |
) |
|
|
|
$ |
0.02 |
|
Diluted(9) |
|
$ |
(0.06 |
) |
|
|
|
$ |
(0.17 |
) |
|
|
|
$ |
(0.00 |
) |
|
|
|
$ |
(0.22 |
) |
|
|
|
$ |
0.02 |
|
(1) |
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 |
|
Six months ended |
|
|
June 29, 2024 |
|
March 30, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
Cost of revenue |
|
$ |
1,777 |
|
$ |
1,893 |
|
$ |
2,881 |
|
$ |
3,670 |
|
$ |
5,157 |
Research and development |
|
|
4,497 |
|
|
5,112 |
|
|
6,200 |
|
|
9,609 |
|
|
11,823 |
Sales and marketing |
|
|
2,611 |
|
|
3,287 |
|
|
4,071 |
|
|
5,898 |
|
|
7,665 |
General and
administration |
|
|
916 |
|
|
4,239 |
|
|
4,845 |
|
|
5,155 |
|
|
9,003 |
Total operating expenses |
|
|
8,024 |
|
|
12,638 |
|
|
15,116 |
|
|
20,662 |
|
|
28,491 |
Total stock-based compensation
expense |
|
$ |
9,801 |
|
$ |
14,531 |
|
$ |
17,997 |
|
$ |
24,332 |
|
$ |
33,648 |
(2) |
Amortization of acquired intangible assets consists of
developed technology and customer relationships acquired in
connection with the acquisitions of Coriant and Transmode AB. 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 it from its
non-GAAP gross profit, operating expenses and net income measures.
Management believes the amortization of acquired intangible assets
is not indicative of ongoing operating performance and its
exclusion provides a better indication of Infinera's underlying
business performance. |
|
|
(3) |
Restructuring and other related
costs are primarily associated with the reduction of headcount and
the reduction of operating costs. In addition, this includes
accelerated amortization on operating lease right-of-use assets due
to the cessation of use of certain facilities. Management has
excluded the impact of these charges in arriving at Infinera's
non-GAAP results as they are non-recurring in nature and its
exclusion provides a better indication of Infinera's underlying
business performance. |
|
|
(4) |
Warehouse fire losses were
incurred due to inventory destroyed in a warehouse fire in the
third quarter of fiscal year 2022. Recoveries are recorded when
they are probable of receipt. Management has excluded the impact of
this loss and subsequent recoveries in arriving at Infinera's
non-GAAP results as it is non-recurring in nature and its exclusion
provides a better indication of Infinera's underlying business
performance. |
|
|
(5) |
Merger-related charges represent
costs incurred directly in connection with the pending merger with
Nokia. Management has excluded the impact of these charges in
arriving at Infinera's non-GAAP results as they are non-recurring
in nature and the exclusion of these charges provides a better
indication of Infinera's underlying business performance. |
|
|
(6) |
Foreign exchange (gains) losses,
net, have been excluded from Infinera's non-GAAP results because
management believes that this expense is not indicative of ongoing
operating performance and its exclusion provides a better
indication of Infinera's underlying business performance. |
|
|
(7) |
The difference between the GAAP
and non-GAAP tax provision is due to the net tax effects of above
non-GAAP adjustments. Management believes the exclusion of these
tax effects provides a better indication of Infinera's underlying
business performance. |
|
|
(8) |
The GAAP diluted shares include
potentially dilutive securities from Infinera's stock-based benefit
plans and convertible senior notes. These potentially dilutive
securities are added for the computation of diluted net income per
share on a GAAP basis in periods when Infinera has net income on a
GAAP basis, as its inclusion provides a better indication of
Infinera's underlying business performance. |
|
|
For purposes of calculating GAAP
diluted earnings per share, we used the following net loss and
weighted average common shares outstanding (in thousands, except
per share data):
|
|
Three months ended |
|
Six months ended |
|
|
June 29, 2024 |
|
March 30, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
GAAP net loss for basic earnings per share |
|
$ |
(48,287 |
) |
|
$ |
(61,395 |
) |
|
$ |
(20,263 |
) |
|
$ |
(109,682 |
) |
|
$ |
(28,673 |
) |
Interest expense related to the convertible senior notes, net of
tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
GAAP net loss for diluted
earnings per share |
|
$ |
(48,287 |
) |
|
$ |
(61,395 |
) |
|
$ |
(20,263 |
) |
|
$ |
(109,682 |
) |
|
$ |
(28,673 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic common
shares outstanding |
|
|
234,349 |
|
|
|
231,533 |
|
|
|
225,922 |
|
|
|
232,941 |
|
|
|
224,159 |
|
Dilutive effect of restricted and performance share units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Dilutive effect of 2024 convertible senior notes(a) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Dilutive effect of 2027 convertible senior notes(b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Dilutive effect of 2028 convertible senior notes(c) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Weighted average dilutive
common shares outstanding |
|
|
234,349 |
|
|
|
231,533 |
|
|
|
225,922 |
|
|
|
232,941 |
|
|
|
224,159 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per common
share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.21 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.13 |
) |
Diluted |
|
$ |
(0.21 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.13 |
) |
|
(a) |
For the three- months ended June 29, 2024, March 30,
2024, and July 1, 2023, there were 1.9 million, 1.9 million
and 9.0 million shares, respectively, excluded from the calculation
of diluted net loss per share, due to their anti-dilutive effect.
For the six-months ended June 29, 2024, and July 1, 2023,
there were 1.9 million, and 9.7 million shares, respectively,
excluded from the calculation of diluted net loss per share, due to
their anti-dilutive effect. |
|
|
|
|
(b) |
For each of the three- months
ended June 29, 2024, March 30, 2024, and July 1,
2023, there were 26.1 million shares excluded from the calculation
of diluted net loss per share, due to their anti-dilutive effect.
For each of the six-months ended June 29, 2024, and
July 1, 2023, there were 26.1 million shares excluded from the
calculation of diluted net loss per share, due to their
anti-dilutive effect. |
|
|
|
|
(c) |
For each of the three- months
ended June 29, 2024, March 30, 2024, and July 1,
2023, there were no shares excluded from the calculation of diluted
net loss per share. For the six-months ended June 29, 2024,
there were no shares excluded from the calculation of diluted net
loss per share. For the six-months ended July 1, 2023, there
were 1.8 million shares excluded from the calculation of diluted
net loss per share, due to their anti-dilutive effect. |
|
|
|
(9) |
The non-GAAP diluted
shares include the potentially dilutive securities from Infinera's
stock-based benefit plans and convertible senior notes. These
potentially dilutive securities are added for the computation of
diluted net income per share on a non-GAAP basis in periods when
Infinera has net income on a non-GAAP basis as its inclusion
provides a better indication of Infinera's underlying business
performance. Refer to the diluted earnings per share reconciliation
presented below. |
|
|
(10) |
Adjusted EBITDA is a
non-GAAP supplemental measure of operating performance that does
not represent and should not be considered an alternative to
operating loss or cash flow from operations, as determined by GAAP.
Infinera's adjusted EBITDA is calculated by excluding the above
non-GAAP adjustments, interest expense, net, other gain (loss),
net, income tax effects and depreciation expenses. Management
believes that adjusted EBITDA is an important financial measure for
use in evaluating Infinera's financial performance, as it measures
the ability of our business operations to generate cash. |
|
|
|
For purposes of calculating non-GAAP
diluted earnings per share, we used the following net income (loss)
and weighted average common shares outstanding (in thousands,
except per share data):
|
|
Three months ended |
|
Six months ended |
|
|
June 29, 2024 |
|
March 30, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
Non-GAAP net income (loss) for basic earnings per share |
|
$ |
(13,976 |
) |
|
$ |
(38,256 |
) |
|
$ |
(730 |
) |
|
$ |
(52,232 |
) |
|
$ |
4,952 |
Interest expense related to the convertible senior notes, net of
tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
Non-GAAP net income (loss) for
diluted earnings per share |
|
$ |
(13,976 |
) |
|
$ |
(38,256 |
) |
|
$ |
(730 |
) |
|
$ |
(52,232 |
) |
|
$ |
4,952 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic common
shares outstanding |
|
|
234,349 |
|
|
|
231,533 |
|
|
|
225,922 |
|
|
|
232,941 |
|
|
|
224,159 |
Dilutive effect of restricted and performance share units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,445 |
Dilutive effect of employee stock purchase plan |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
106 |
Dilutive effect of 2024 convertible senior notes(a) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
Dilutive effect of 2027 convertible senior notes(b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
Dilutive effect of 2028 convertible senior notes(c) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,792 |
Weighted average dilutive
common shares outstanding |
|
|
234,349 |
|
|
|
231,533 |
|
|
|
225,922 |
|
|
|
232,941 |
|
|
|
228,502 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) per
common share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.06 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.22 |
) |
|
$ |
0.02 |
Diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.22 |
) |
|
$ |
0.02 |
|
(a) |
For the three- months ended June 29, 2024, March 30,
2024, and July 1, 2023, there were 1.9 million, 1.9 million
and 9.0 million shares, respectively, excluded from the calculation
of diluted net income (loss) per share, due to their anti-dilutive
effect. For the six-months ended June 29, 2024, and
July 1, 2023, there were 1.9 million, and 9.7 million shares,
respectively, excluded from the calculation of diluted net income
(loss) per share, due to their anti-dilutive effect. |
|
|
|
|
(b) |
For each of the three- months
ended June 29, 2024, March 30, 2024, and July 1,
2023, there were 26.1 million shares excluded from the calculation
of diluted net income (loss) per share, due to their anti-dilutive
effect. For each of the six-months ended June 29, 2024, and
July 1, 2023, there were 26.1 million shares excluded from the
calculation of diluted net income (loss) per share, due to their
anti-dilutive effect. |
|
|
|
|
(c) |
For each of the three- months
ended June 29, 2024, March 30, 2024, and July 1,
2023, there were no shares excluded from the calculation of diluted
net income (loss) per share. For each of the six-months ended
June 29, 2024, and July 1, 2023, there were no shares
excluded from the calculation of diluted net income (loss) per
share. |
|
|
|
Infinera CorporationGAAP to Non-GAAP
Reconciliations(In
thousands)(Unaudited)
Free Cash Flow
We define free cash flow as net cash provided by (used in)
operating activities in the period minus the purchase of property
and equipment made in the period.
Free cash flow is considered a non-GAAP financial measure under
the SEC’s rules. Management believes that free cash flow is an
important financial measure for use in evaluating Infinera's
financial performance, as it measures our ability to generate
additional cash from our business operations. Free cash flow should
be considered in addition to, rather than as a substitute for, net
loss as a measure of our performance or net cash provided by (used
in) operating activities as a measure of our liquidity.
Additionally, our definition of free cash flow is limited and does
not represent residual cash flows available for discretionary
expenditures due to the fact that the measure does not deduct the
payments required for debt service and other obligations.
Therefore, we believe it is important to view free cash flow as
supplemental to our entire statement of cash flows.
|
|
Three months ended |
|
Six months ended |
|
|
June 29, 2024 |
|
March 30, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
Net cash (used in) provided by operating activities |
|
$ |
(59,954 |
) |
|
$ |
24,026 |
|
|
$ |
1,420 |
|
|
$ |
(35,928 |
) |
|
$ |
(349 |
) |
Purchase of property and
equipment |
|
|
(14,582 |
) |
|
|
(8,076 |
) |
|
|
(10,773 |
) |
|
|
(22,658 |
) |
|
|
(27,582 |
) |
Free cash flow |
|
$ |
(74,536 |
) |
|
$ |
15,950 |
|
|
$ |
(9,353 |
) |
|
$ |
(58,586 |
) |
|
$ |
(27,931 |
) |
|
Infinera CorporationCondensed
Consolidated Balance Sheets(In thousands, except
par values)(Unaudited)
|
June 29,2024 |
|
December 30,2023 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
114,670 |
|
|
$ |
172,505 |
|
Short-term restricted cash |
|
333 |
|
|
|
517 |
|
Accounts receivable, net |
|
284,382 |
|
|
|
381,981 |
|
Inventory |
|
384,258 |
|
|
|
431,163 |
|
Prepaid expenses and other current assets |
|
167,144 |
|
|
|
129,218 |
|
Total current assets |
|
950,787 |
|
|
|
1,115,384 |
|
Property, plant and equipment,
net |
|
220,163 |
|
|
|
206,997 |
|
Operating lease right-of-use
assets |
|
38,836 |
|
|
|
39,973 |
|
Intangible assets, net |
|
20,306 |
|
|
|
24,819 |
|
Goodwill |
|
230,688 |
|
|
|
240,566 |
|
Long-term restricted cash |
|
649 |
|
|
|
837 |
|
Other long-term assets |
|
57,406 |
|
|
|
50,662 |
|
Total assets |
$ |
1,518,835 |
|
|
$ |
1,679,238 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
237,904 |
|
|
$ |
299,005 |
|
Accrued expenses and other current liabilities |
|
131,572 |
|
|
|
110,758 |
|
Accrued compensation and related benefits |
|
53,837 |
|
|
|
85,203 |
|
Short-term debt, net |
|
25,273 |
|
|
|
25,512 |
|
Accrued warranty |
|
14,937 |
|
|
|
17,266 |
|
Deferred revenue |
|
140,926 |
|
|
|
136,248 |
|
Total current liabilities |
|
604,449 |
|
|
|
673,992 |
|
Long-term debt, net |
|
660,420 |
|
|
|
658,756 |
|
Long-term accrued
warranty |
|
14,521 |
|
|
|
15,934 |
|
Long-term deferred
revenue |
|
21,985 |
|
|
|
21,332 |
|
Long-term deferred tax
liability |
|
1,694 |
|
|
|
1,805 |
|
Long-term operating lease
liabilities |
|
44,795 |
|
|
|
47,464 |
|
Other long-term
liabilities |
|
39,383 |
|
|
|
43,364 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.001 par valueAuthorized shares – 25,000 and no
shares issued and outstanding |
|
— |
|
|
|
— |
|
Common stock, $0.001 par valueAuthorized shares - 500,000 as of
June 29, 2024 and December 30, 2023Issued and outstanding
shares - 235,135 as of June 29, 2024 and 230,994 as of
December 30, 2023 |
|
235 |
|
|
|
231 |
|
Additional paid-in capital |
|
1,998,670 |
|
|
|
1,976,014 |
|
Accumulated other comprehensive loss |
|
(32,829 |
) |
|
|
(34,848 |
) |
Accumulated deficit |
|
(1,834,488 |
) |
|
|
(1,724,806 |
) |
Total stockholders' equity |
|
131,588 |
|
|
|
216,591 |
|
Total liabilities and stockholders’ equity |
$ |
1,518,835 |
|
|
$ |
1,679,238 |
|
|
Infinera CorporationCondensed
Consolidated Statements of Cash Flows(In
thousands) (Unaudited)
|
Six months ended |
|
June 29, 2024 |
|
July 1, 2023 |
Cash Flows from Operating
Activities: |
|
|
|
Net loss |
$ |
(109,682 |
) |
|
$ |
(28,673 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
Depreciation and amortization |
|
30,986 |
|
|
|
39,401 |
|
Non-cash restructuring charges and other related costs |
|
52 |
|
|
|
1,155 |
|
Amortization of debt issuance costs and discount |
|
1,825 |
|
|
|
2,108 |
|
Operating lease expense |
|
4,506 |
|
|
|
4,279 |
|
Stock-based compensation expense |
|
24,332 |
|
|
|
33,649 |
|
Other, net |
|
(174 |
) |
|
|
(682 |
) |
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
|
94,764 |
|
|
|
94,216 |
|
Inventory |
|
46,148 |
|
|
|
(53,162 |
) |
Prepaid expenses and other current assets |
|
(52,618 |
) |
|
|
11,377 |
|
Accounts payable |
|
(78,074 |
) |
|
|
(28,023 |
) |
Accrued expenses and other current liabilities |
|
(4,634 |
) |
|
|
(50,699 |
) |
Deferred revenue |
|
6,641 |
|
|
|
(25,295 |
) |
Net cash used in operating activities |
|
(35,928 |
) |
|
|
(349 |
) |
Cash Flows from Investing
Activities: |
|
|
|
Purchase of property and equipment |
|
(22,658 |
) |
|
|
(27,582 |
) |
Net cash used in investing activities |
|
(22,658 |
) |
|
|
(27,582 |
) |
Cash Flows from Financing
Activities: |
|
|
|
Proceeds from issuance of 2028 Notes, net of discount |
|
— |
|
|
|
98,751 |
|
Repayment of 2024 Notes |
|
— |
|
|
|
(83,446 |
) |
Payment of debt issuance cost |
|
— |
|
|
|
(2,030 |
) |
Proceeds from asset-based revolving credit facility |
|
25,000 |
|
|
|
— |
|
Repayment of asset-based revolving credit facility |
|
(25,000 |
) |
|
|
— |
|
Repayment of mortgage payable |
|
(240 |
) |
|
|
(253 |
) |
Principal payments on finance lease obligations |
|
(372 |
) |
|
|
(471 |
) |
Payment of term license obligation |
|
(5,148 |
) |
|
|
(5,505 |
) |
Proceeds from issuance of common stock |
|
4 |
|
|
|
8,738 |
|
Tax withholding paid on behalf of employees for net share
settlement |
|
(1,599 |
) |
|
|
(1,668 |
) |
Net cash (used in) provided by financing activities |
|
(7,355 |
) |
|
|
14,116 |
|
Effect of exchange rate
changes on cash |
|
7,734 |
|
|
|
(8,629 |
) |
Net change in cash, cash
equivalents and restricted cash |
|
(58,207 |
) |
|
|
(22,444 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
173,859 |
|
|
|
189,203 |
|
Cash, cash equivalents and
restricted cash at end of period(1) |
$ |
115,652 |
|
|
$ |
166,759 |
|
|
Infinera CorporationCondensed
Consolidated Statements of Cash Flows(In
thousands) (Unaudited)
|
Six months ended |
|
June 29, 2024 |
|
July 1, 2023 |
Supplemental
disclosures of cash flow information: |
|
|
|
Cash paid for income taxes, net |
$ |
13,360 |
|
$ |
8,983 |
Cash paid for interest |
$ |
13,237 |
|
$ |
11,076 |
Supplemental schedule
of non-cash investing and financing activities: |
|
|
|
Unpaid debt issuance cost |
$ |
— |
|
$ |
375 |
Property and equipment included in accounts payable and accrued
liabilities |
$ |
26,888 |
|
$ |
16,068 |
Unpaid term licenses (included in accounts payable, accrued
liabilities and other long-term liabilities) |
$ |
18,832 |
|
$ |
10,276 |
(1) |
Reconciliation of cash, cash equivalents and restricted cash to the
condensed consolidated balance sheets (in thousands): |
|
June 29, 2024 |
|
July 1, 2023 |
|
|
|
|
Cash and cash equivalents |
$ |
114,670 |
|
$ |
163,007 |
Short-term restricted
cash |
|
333 |
|
|
2,449 |
Long-term restricted cash |
|
649 |
|
|
1,303 |
Total cash, cash equivalents and restricted cash |
$ |
115,652 |
|
$ |
166,759 |
|
Infinera CorporationSupplemental
Financial Information(Unaudited)
|
|
Q3'22 |
|
Q4'22 |
|
Q1'23 |
|
Q2'23 |
|
Q3'23 |
|
Q4'23 |
|
Q1'24 |
|
Q2'24 |
GAAP Revenue $(Mil) |
|
$ |
390.4 |
|
|
$ |
485.9 |
|
|
$ |
392.1 |
|
|
$ |
376.2 |
|
|
$ |
392.4 |
|
|
$ |
453.5 |
|
|
$ |
306.9 |
|
|
$ |
342.7 |
|
GAAP Gross Margin % |
|
|
34.4 |
% |
|
|
37.1 |
% |
|
|
37.5 |
% |
|
|
38.0 |
% |
|
|
40.3 |
% |
|
|
38.6 |
% |
|
|
36.0 |
% |
|
|
39.6 |
% |
Non-GAAP Gross Margin
%(1) |
|
|
37.8 |
% |
|
|
38.7 |
% |
|
|
38.8 |
% |
|
|
39.3 |
% |
|
|
41.9 |
% |
|
|
39.6 |
% |
|
|
36.6 |
% |
|
|
40.3 |
% |
GAAP Revenue
Composition: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic % |
|
|
57 |
% |
|
|
61 |
% |
|
|
60 |
% |
|
|
58 |
% |
|
|
59 |
% |
|
|
68 |
% |
|
|
54 |
% |
|
|
58 |
% |
International % |
|
|
43 |
% |
|
|
39 |
% |
|
|
40 |
% |
|
|
42 |
% |
|
|
41 |
% |
|
|
32 |
% |
|
|
46 |
% |
|
|
42 |
% |
Customers >10% of
Revenue |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
Cash Related
Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from Operations
$(Mil) |
|
$ |
19.6 |
|
|
$ |
(0.6 |
) |
|
$ |
(1.8 |
) |
|
$ |
1.4 |
|
|
$ |
(29.7 |
) |
|
$ |
79.6 |
|
|
$ |
24.0 |
|
|
$ |
(59.9 |
) |
Capital Expenditures
$(Mil) |
|
$ |
11.0 |
|
|
$ |
8.3 |
|
|
$ |
16.8 |
|
|
$ |
10.8 |
|
|
$ |
13.3 |
|
|
$ |
21.4 |
|
|
$ |
8.1 |
|
|
$ |
14.6 |
|
Depreciation &
Amortization $(Mil) |
|
$ |
21.3 |
|
|
$ |
19.8 |
|
|
$ |
19.6 |
|
|
$ |
19.8 |
|
|
$ |
20.0 |
|
|
$ |
19.4 |
|
|
$ |
15.4 |
|
|
$ |
15.6 |
|
DSOs(2) |
|
|
66 |
|
|
|
79 |
|
|
|
78 |
|
|
|
79 |
|
|
|
76 |
|
|
|
77 |
|
|
|
79 |
|
|
|
76 |
|
Inventory
Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw Materials $(Mil) |
|
$ |
43.5 |
|
|
$ |
48.7 |
|
|
$ |
67.6 |
|
|
$ |
85.4 |
|
|
$ |
110.4 |
|
|
$ |
133.6 |
|
|
$ |
132.5 |
|
|
$ |
119.4 |
|
Work in Process $(Mil) |
|
$ |
62.6 |
|
|
$ |
66.6 |
|
|
$ |
71.8 |
|
|
$ |
71.9 |
|
|
$ |
69.9 |
|
|
$ |
68.4 |
|
|
$ |
68.6 |
|
|
$ |
68.7 |
|
Finished Goods $(Mil) |
|
$ |
224.9 |
|
|
$ |
259.6 |
|
|
$ |
273.6 |
|
|
$ |
270.1 |
|
|
$ |
276.6 |
|
|
$ |
229.2 |
|
|
$ |
219.6 |
|
|
$ |
196.1 |
|
Total Inventory
$(Mil) |
|
$ |
331.0 |
|
|
$ |
374.9 |
|
|
$ |
413.0 |
|
|
$ |
427.4 |
|
|
$ |
456.9 |
|
|
$ |
431.2 |
|
|
$ |
420.7 |
|
|
$ |
384.2 |
|
Inventory Turns(3) |
|
|
3.0 |
|
|
|
3.4 |
|
|
|
2.4 |
|
|
|
2.2 |
|
|
|
2.1 |
|
|
|
2.5 |
|
|
|
1.8 |
|
|
|
2.0 |
|
Worldwide
Headcount |
|
|
3,199 |
|
|
|
3,267 |
|
|
|
3,351 |
|
|
|
3,365 |
|
|
|
3,369 |
|
|
|
3,389 |
|
|
|
3,323 |
|
|
|
3,334 |
|
Weighted Average
Shares Outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
217,620 |
|
|
|
219,921 |
|
|
|
222,393 |
|
|
|
225,922 |
|
|
|
228,077 |
|
|
|
230,509 |
|
|
|
231,533 |
|
|
|
234,349 |
|
Diluted |
|
|
268,927 |
|
|
|
258,030 |
|
|
|
229,404 |
|
|
|
262,712 |
|
|
|
257,219 |
|
|
|
259,210 |
|
|
|
260,980 |
|
|
|
265,591 |
|
(1) |
Non-GAAP adjustments include stock-based compensation expense,
amortization of acquired intangible assets, restructuring and other
related costs and warehouse fire recovery. 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. For reconciliations of prior periods that are not
otherwise provided herein, see the prior period earnings releases
available on our Investor Relations webpage. |
|
|
(2) |
Infinera calculates DSO based on
91 days. Fiscal year 2022 was 53 weeks and the fourth quarter of
fiscal year 2022 was 98 days. When calculation is based on 98 days,
DSO was 85 days for the fourth quarter of fiscal year 2022. |
|
|
(3) |
Infinera calculates non-GAAP
inventory turns as annualized non-GAAP cost of revenue, which is
calculated as GAAP cost of revenue less stock-based compensation
expense, amortization of acquired intangible assets, restructuring
and other related costs and warehouse fire recovery, as illustrated
in the reconciliation of gross profit above, divided by the average
inventory for the quarter. |
|
|
Infinera (NASDAQ:INFN)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Infinera (NASDAQ:INFN)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024