Infinera announces Q3 revenue of $192m, restructuring

Infinera reported Q3 2017 revenue of $192.6 million, compared to $176.8 million in the second quarter of 2017 and $185.5 million in the third quarter of 2016. GAAP gross margin for the quarter was 35.2% compared to 36.7% in the second quarter of 2017 and 45.6% in the third quarter of 2016. GAAP operating margin for the quarter was (17.8)% compared to (22.9)% in the second quarter of 2017 and (5.9)% in the third quarter of 2016. There was a GAAP net loss for the quarter was $(37.2) million, or $(0.25) per share, compared to a net loss of $(42.8) million, or $(0.29) per share, in the second quarter of 2017, and net loss of $(11.2) million, or $(0.08) per share, in the third quarter of 2016.

In addition, Infinera announced a restructuring plan to reduce its expenses, including reduced headcount, rationalization of certain products and programs, and the closure of a remote R&D facility.
Infinera anticipates annual savings from the restructuring to be approximately $40.0 million.

“In the third quarter we continued to bring new products to market and delivered financial results that exceeded our guidance,” said Tom Fallon, Infinera’s Chief Executive Officer. “Our ICE4 products are delivering the technology differentiation we expected and are gaining traction across multiple customer verticals. Despite a softening near-term market outlook, over time I am confident we will return to outgrowing the market and delivering strong financial results.”