Infinera released preliminary financial results for its fourth quarter ended December 30, 2023:
- Preliminary revenue is expected to be $435 million to $452 million, compared to the Company’s prior outlook of $421 million to $451 million.
- The resulting preliminary GAAP gross margin is expected to be 38.0% to 40.0%, compared to the Company’s prior outlook of 37.3% to 40.4%.
- The resulting preliminary GAAP operating margin is expected to be 0.0% to 3.0%, compared to the Company’s prior outlook of 0.7% to 5.0%.
- The resulting preliminary GAAP net income (loss) per diluted share is expected to be ($0.02) to $0.04, compared to the Company’s prior outlook of ($0.04) to $0.04.
- Preliminary non-GAAP gross margin is expected to be 39.0% to 41.0%, compared to the Company’s prior outlook of 38.0% to 41.0%, and the preliminary non-GAAP operating margin is expected to be 5.7% to 8.3%, compared to the Company’s prior outlook of 5.5% to 9.5%.
- Preliminary non-GAAP net income per diluted share is expected to be $0.07 to $0.13, compared to the Company’s prior outlook of $0.05 to $0.13 per diluted share.
- Preliminary cash and cash equivalents, including restricted cash, was approximately $174 million.
Infinera CEO David Heard said, “We ended 2023 on a high note with a strong fourth quarter during which the midpoints of our preliminary revenue, gross margin, and earnings per share ranges are all expected to come in above those of our prior outlook ranges. For the full year of 2023, we expect to deliver our sixth consecutive year of revenue growth, expand gross margin to a level approaching 40%, and grow earnings per share on a year-over-year basis.”
“As we look ahead, like the rest of the industry, we are expecting a slow first half of the year. Regardless, both the pace and scale of our design wins are accelerating. Already, in the first 60 days of 2024, we have achieved major hyperscale-influenced strategic wins, one of which is among the most significant in the company’s history, based on our Systems and Subsystems solutions. These strategic wins, combined with our design win funnel, position us well to deliver a stronger second half and place us on a path to achieve our seventh consecutive year of revenue growth with continued margin and earnings per share expansion,” continued Mr. Heard.
Infinera’s outlook for the quarter ending March 30, 2024, is as follows:
- Revenue is expected to be $320 million to $350 million.
- GAAP gross margin is expected to be 35.3% to 37.4%. Non-GAAP gross margin is expected to be 36.0% to 38.0%.
- GAAP operating expenses are expected to be $157 million to $161 million. Non-GAAP operating expenses are expected to be $143 million to $147 million.
- GAAP operating margin is expected to be (13.5%) to (8.2%). Non-GAAP operating margin is expected to be (8.5%) to (3.5%).
- GAAP net loss per diluted share is expected to be ($0.25) to ($0.17). Non-GAAP net loss per diluted share is expected to be ($0.18) to ($0.10).
