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Mar 30, 2024

Infinera Q1 2024 Earnings Report

Preliminary financial results for the first quarter ended March 30, 2024, were released.

Key Takeaways

Infinera reported preliminary Q1 2024 financial results, with revenue at $306.9 million and a GAAP net loss of $(61.4) million, or $(0.27) per diluted share. The company saw significant customer, RFP, and design-win momentum, but the industry faced challenges as customers held back spending and pushed out projects.

GAAP revenue for the quarter was $306.9 million compared to $392.1 million in the first quarter of 2023.

GAAP net loss for the quarter was $(61.4) million, or $(0.27) per diluted share, compared to net loss of $(8.4) million, or $(0.04) per diluted share, in the first quarter of 2023.

Generated $24.0 million of operating cash flow and free cash flow of $16.0 million for the quarter.

Bookings were up year-over-year, and met the plan, with the multi-year revenue opportunity associated with design wins representing potentially the largest in the company’s history.

Total Revenue
$307M
Previous year: $392M
-21.7%
EPS
-$0.17
Previous year: $0.02
-950.0%
GAAP Gross Margin
36%
GAAP Operating Margin
-14%
Non-GAAP Gross Margin
36.6%
Gross Profit
$110M
Previous year: $147M
-24.8%
Cash and Equivalents
$191M
Previous year: $164M
+16.5%
Free Cash Flow
$16M
Previous year: -$18.6M
-185.9%
Total Assets
$1.57B
Previous year: $1.6B
-2.1%

Infinera

Infinera

Infinera Revenue by Segment

Infinera Revenue by Geographic Location

Forward Guidance

Infinera's outlook for the quarter ending June 29, 2024, includes revenue expected to be $330 million +/- $20 million and GAAP gross margin expected to be 38.5% +/- 150 bps.

Positive Outlook

  • Revenue is expected to be $330 million +/- $20 million.
  • GAAP gross margin is expected to be 38.5% +/- 150 bps.
  • Non-GAAP gross margin is expected to be 39.5% +/- 150 bps.
  • GAAP operating expenses are expected to be $162.5 million +/- $1.5 million.
  • Non-GAAP operating expenses are expected to be $139.5 million +/- $1.5 million.

Challenges Ahead

  • GAAP operating margin is expected to be (11.5)% +/- 300 bps.
  • Non-GAAP operating margin is expected to be (3.5)% +/- 300 bps.
  • GAAP net loss per share is expected to be $(0.21) +/- $0.04.
  • Non-GAAP net loss per share is expected to be $(0.09) +/- $0.04.

Revenue & Expenses

Visualization of income flow from segment revenue to net income