Infinera Corporation (NASDAQ: INFN) today released financial
results for its third quarter ended September 28, 2024.
GAAP revenue for the quarter was $354.4 million compared to
$342.7 million in the second quarter of 2024 and $392.4
million in the third quarter of 2023.
GAAP gross margin for the quarter was 39.8% compared to 39.6% in
the second quarter of 2024 and 40.3% in the third quarter of 2023.
GAAP operating margin for the quarter was (3.1)% compared to (8.7)%
in the second quarter of 2024 and 2.0% in the third quarter of
2023.
GAAP net loss for the quarter was $(14.3) million, or $(0.06)
per diluted share, compared to net loss of $(48.3) million, or
$(0.21) per diluted share, in the second quarter of 2024, and net
loss of $(9.4) million, or $(0.04) per diluted share, in the third
quarter of 2023.
Non-GAAP gross margin for the quarter was 40.4% compared to
40.3% in the second quarter of 2024 and 41.9% in the third quarter
of 2023. Non-GAAP operating margin for the quarter was 3.5%
compared to (1.3)% in the second quarter of 2024 and 7.7% in the
third quarter of 2023.
Non-GAAP net income for the quarter was $0.3 million, or $0.00
per diluted share, compared to non-GAAP net loss of $(14.0)
million, or $(0.06) per diluted share, in the second quarter of
2024, and non-GAAP net income of $19.9 million, or $0.08 per
diluted share, in the third quarter of 2023.
During the three-months ended September 28, 2024, the
Company generated positive cash flow from operations of $44.5
million and ended the quarter with cash, cash equivalents and
restricted cash of $115.6 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 “Our team delivered another
quarter with continued sequential improvements in our financial
metrics and critical service provider and webscaler design wins
across our ICE-X coherent pluggables, next-generation line systems,
software, and ICE7 solutions. In addition, in October we signed a
non-binding preliminary memorandum of terms with the U.S.
Department of Commerce for an award under the CHIPS and Science Act
that, together with other federal and state incentives, could
result in more than $200 million in funds for Infinera.”
“Looking ahead, our customers remain excited about our pending
acquisition by Nokia as they look forward to the combined company
accelerating the pace of innovation in the industry. We are making
good progress on the steps required to close the transaction,
including receiving stockholder approval and attaining U.S.
antitrust and CFIUS approval. There are still other regulatory
approvals pending, but we believe we remain on track to close the
deal in the first half of 2025,” continued Mr. Heard.
Pending Merger with Nokia
On June 27, 2024, Infinera, Nokia Corporation, a company
incorporated under the laws of the Republic of Finland (“Nokia”)
(NYSE: NOK) 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.
Third Quarter
2024 Investor Slides to be Made Available
Online
Investor slides reviewing Infinera's third 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 the amount Infinera could
receive in government funding; 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; failure to secure the funding
contemplated by grants Infinera may receive from governments,
agencies or research organizations, or failure to comply with the
terms of those grants; 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, and
its Quarterly Report on Form 10-Q for the quarter ended June 29,
2024, as filed with the SEC on August 2, 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 |
|
Nine months ended |
|
September 28, 2024 |
|
September 30, 2023 |
|
September 28, 2024 |
|
September 30, 2023 |
Revenue: |
|
|
|
|
|
|
|
Product |
$ |
276,214 |
|
|
$ |
316,613 |
|
|
$ |
778,008 |
|
|
$ |
931,057 |
|
Services |
|
78,184 |
|
|
|
75,756 |
|
|
|
226,051 |
|
|
|
229,615 |
|
Total revenue |
|
354,398 |
|
|
|
392,369 |
|
|
|
1,004,059 |
|
|
|
1,160,672 |
|
Cost of
revenue: |
|
|
|
|
|
|
|
Cost of product |
|
170,693 |
|
|
|
190,312 |
|
|
|
494,248 |
|
|
|
577,152 |
|
Cost of services |
|
42,515 |
|
|
|
40,209 |
|
|
|
121,910 |
|
|
|
124,889 |
|
Amortization of intangible assets |
|
— |
|
|
|
3,528 |
|
|
|
— |
|
|
|
10,621 |
|
Restructuring and other related costs |
|
(24 |
) |
|
|
— |
|
|
|
652 |
|
|
|
— |
|
Total cost of revenue |
|
213,184 |
|
|
|
234,049 |
|
|
|
616,810 |
|
|
|
712,662 |
|
Gross
profit |
|
141,214 |
|
|
|
158,320 |
|
|
|
387,249 |
|
|
|
448,010 |
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
73,283 |
|
|
|
76,846 |
|
|
|
225,223 |
|
|
|
237,234 |
|
Sales and marketing |
|
35,715 |
|
|
|
41,075 |
|
|
|
118,357 |
|
|
|
124,406 |
|
General and administrative |
|
34,160 |
|
|
|
29,368 |
|
|
|
101,114 |
|
|
|
89,762 |
|
Amortization of intangible assets |
|
2,257 |
|
|
|
2,976 |
|
|
|
6,769 |
|
|
|
10,088 |
|
Merger-related charges |
|
6,954 |
|
|
|
— |
|
|
|
15,471 |
|
|
|
— |
|
Restructuring and other related costs |
|
(157 |
) |
|
|
400 |
|
|
|
4,105 |
|
|
|
2,621 |
|
Total operating expenses |
|
152,212 |
|
|
|
150,665 |
|
|
|
471,039 |
|
|
|
464,111 |
|
Income
(loss) from operations |
|
(10,998 |
) |
|
|
7,655 |
|
|
|
(83,790 |
) |
|
|
(16,101 |
) |
Other
income (expense), net: |
|
|
|
|
|
|
|
Interest income |
|
874 |
|
|
|
546 |
|
|
|
2,789 |
|
|
|
1,734 |
|
Interest expense |
|
(8,764 |
) |
|
|
(7,608 |
) |
|
|
(25,556 |
) |
|
|
(21,795 |
) |
Other gain (loss), net |
|
8,485 |
|
|
|
(7,540 |
) |
|
|
(8,910 |
) |
|
|
10,586 |
|
Total other income (expense), net |
|
595 |
|
|
|
(14,602 |
) |
|
|
(31,677 |
) |
|
|
(9,475 |
) |
Loss
before income taxes |
|
(10,403 |
) |
|
|
(6,947 |
) |
|
|
(115,467 |
) |
|
|
(25,576 |
) |
Provision for income taxes |
|
3,910 |
|
|
|
2,466 |
|
|
|
8,528 |
|
|
|
12,510 |
|
Net
loss |
$ |
(14,313 |
) |
|
$ |
(9,413 |
) |
|
$ |
(123,995 |
) |
|
$ |
(38,086 |
) |
Net loss
per common share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.06 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.53 |
) |
|
$ |
(0.17 |
) |
Diluted |
$ |
(0.06 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.53 |
) |
|
$ |
(0.17 |
) |
Weighted average shares used in computing net loss per common
share: |
|
|
|
|
|
|
|
Basic |
|
235,832 |
|
|
|
228,077 |
|
|
|
233,905 |
|
|
|
225,465 |
|
Diluted |
|
235,832 |
|
|
|
228,077 |
|
|
|
233,905 |
|
|
|
225,465 |
|
|
Infinera CorporationGAAP to Non-GAAP
Reconciliations(In thousands, except
percentages)(Unaudited)
|
Three months ended |
|
Nine months ended |
|
September 28, 2024 |
|
June 29, 2024 |
|
September 30, 2023 |
|
September 28, 2024 |
|
September 30, 2023 |
Reconciliation of
Gross Profit and Gross Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
$ |
141,214 |
|
|
39.8 |
% |
|
$ |
135,594 |
|
|
39.6 |
% |
|
$ |
158,320 |
|
40.3 |
% |
|
$ |
387,249 |
|
|
38.6 |
% |
|
$ |
448,010 |
|
|
38.6 |
% |
Stock-based compensation
expense(1) |
|
2,084 |
|
|
0.6 |
% |
|
|
1,777 |
|
|
0.5 |
% |
|
|
2,515 |
|
0.7 |
% |
|
|
5,754 |
|
|
0.5 |
% |
|
|
7,672 |
|
|
0.7 |
% |
Amortization of acquired
intangible assets(2) |
|
— |
|
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
3,528 |
|
0.9 |
% |
|
|
— |
|
|
— |
% |
|
|
10,621 |
|
|
0.9 |
% |
Restructuring and other
related costs(3) |
|
(24 |
) |
|
(0.0) |
% |
|
|
703 |
|
|
0.2 |
% |
|
|
— |
|
|
|
|
652 |
|
|
0.1 |
% |
|
|
— |
|
|
— |
% |
Warehouse fire
recovery(4) |
|
— |
|
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
(1,985 |
) |
|
(0.2) |
% |
Non-GAAP as adjusted |
$ |
143,274 |
|
|
40.4 |
% |
|
$ |
138,074 |
|
|
40.3 |
% |
|
$ |
164,363 |
|
41.9 |
% |
|
$ |
393,655 |
|
|
39.2 |
% |
|
$ |
464,318 |
|
|
40.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
$ |
152,212 |
|
|
|
|
$ |
165,403 |
|
|
|
|
$ |
150,665 |
|
|
|
$ |
471,039 |
|
|
|
|
$ |
464,111 |
|
|
|
Stock-based compensation
expense(1) |
|
12,305 |
|
|
|
|
|
8,024 |
|
|
|
|
|
13,230 |
|
|
|
|
32,967 |
|
|
|
|
|
41,721 |
|
|
|
Amortization of acquired
intangible assets(2) |
|
2,257 |
|
|
|
|
|
2,256 |
|
|
|
|
|
2,976 |
|
|
|
|
6,769 |
|
|
|
|
|
10,088 |
|
|
|
Restructuring and other
related costs(3) |
|
(157 |
) |
|
|
|
|
3,948 |
|
|
|
|
|
400 |
|
|
|
|
4,105 |
|
|
|
|
|
2,621 |
|
|
|
Merger-related charges(5) |
|
6,954 |
|
|
|
|
|
8,517 |
|
|
|
|
|
— |
|
|
|
|
15,471 |
|
|
|
|
|
— |
|
|
|
Non-GAAP as adjusted |
$ |
130,853 |
|
|
|
|
$ |
142,658 |
|
|
|
|
$ |
134,059 |
|
|
|
$ |
411,727 |
|
|
|
|
$ |
409,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income (Loss) from Operations and Operating Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
$ |
(10,998 |
) |
|
(3.1) |
% |
|
$ |
(29,809 |
) |
|
(8.7) |
% |
|
$ |
7,655 |
|
2.0 |
% |
|
$ |
(83,790 |
) |
|
(8.3) |
% |
|
$ |
(16,101 |
) |
|
(1.4) |
% |
Stock-based compensation
expense(1) |
|
14,389 |
|
|
4.1 |
% |
|
|
9,801 |
|
|
2.8 |
% |
|
|
15,745 |
|
3.9 |
% |
|
|
38,721 |
|
|
3.8 |
% |
|
|
49,393 |
|
|
4.3 |
% |
Amortization of acquired
intangible assets(2) |
|
2,257 |
|
|
0.6 |
% |
|
|
2,256 |
|
|
0.7 |
% |
|
|
6,504 |
|
1.7 |
% |
|
|
6,769 |
|
|
0.7 |
% |
|
|
20,709 |
|
|
1.8 |
% |
Restructuring and other
related costs(3) |
|
(181 |
) |
|
(0.1) |
% |
|
|
4,651 |
|
|
1.4 |
% |
|
|
400 |
|
0.1 |
% |
|
|
4,757 |
|
|
0.5 |
% |
|
|
2,621 |
|
|
0.2 |
% |
Warehouse fire
recovery(4) |
|
— |
|
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
% |
|
|
(1,985 |
) |
|
(0.2) |
% |
Merger-related charges(5) |
|
6,954 |
|
|
2.0 |
% |
|
|
8,517 |
|
|
2.5 |
% |
|
|
— |
|
— |
% |
|
|
15,471 |
|
|
1.5 |
% |
|
|
— |
|
|
— |
% |
Non-GAAP as adjusted |
$ |
12,421 |
|
|
3.5 |
% |
|
$ |
(4,584 |
) |
|
(1.3) |
% |
|
$ |
30,304 |
|
7.7 |
% |
|
$ |
(18,072 |
) |
|
(1.8) |
% |
|
$ |
54,637 |
|
|
4.7 |
% |
|
|
|
Three months ended |
|
Nine months ended |
|
|
September 28, 2024 |
|
|
|
June 29, 2024 |
|
|
|
September 30, 2023 |
|
|
|
September 28, 2024 |
|
|
|
September 30, 2023 |
Reconciliation of Net
Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
(14,313 |
) |
|
|
|
$ |
(48,287 |
) |
|
|
|
$ |
(9,413 |
) |
|
|
|
$ |
(123,995 |
) |
|
|
|
$ |
(38,086 |
) |
Stock-based compensation
expense(1) |
|
|
14,389 |
|
|
|
|
|
9,801 |
|
|
|
|
|
15,745 |
|
|
|
|
|
38,721 |
|
|
|
|
|
49,393 |
|
Amortization of acquired
intangible assets(2) |
|
|
2,257 |
|
|
|
|
|
2,256 |
|
|
|
|
|
6,504 |
|
|
|
|
|
6,769 |
|
|
|
|
|
20,709 |
|
Restructuring and other
related costs(3) |
|
|
(181 |
) |
|
|
|
|
4,651 |
|
|
|
|
|
400 |
|
|
|
|
|
4,757 |
|
|
|
|
|
2,621 |
|
Warehouse fire
recovery(4) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(1,985 |
) |
Merger-related charges(5) |
|
|
6,954 |
|
|
|
|
|
8,517 |
|
|
|
|
|
— |
|
|
|
|
|
15,471 |
|
|
|
|
|
— |
|
Foreign exchange (gains)
losses, net(6) |
|
|
(8,039 |
) |
|
|
|
|
11,690 |
|
|
|
|
|
7,527 |
|
|
|
|
|
10,099 |
|
|
|
|
|
(9,903 |
) |
Income tax effects(7) |
|
|
(788 |
) |
|
|
|
|
(2,604 |
) |
|
|
|
|
(894 |
) |
|
|
|
|
(3,775 |
) |
|
|
|
|
2,072 |
|
Non-GAAP as adjusted |
|
$ |
279 |
|
|
|
|
$ |
(13,976 |
) |
|
|
|
$ |
19,869 |
|
|
|
|
$ |
(51,953 |
) |
|
|
|
$ |
24,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Used in Computing GAAP Net Income
(Loss) per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
235,832 |
|
|
|
|
|
234,349 |
|
|
|
|
|
228,077 |
|
|
|
|
|
233,905 |
|
|
|
|
|
225,465 |
|
Diluted(8) |
|
|
235,832 |
|
|
|
|
|
234,349 |
|
|
|
|
|
228,077 |
|
|
|
|
|
233,905 |
|
|
|
|
|
225,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Used in Computing Non-GAAP Net Income (Loss) per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
235,832 |
|
|
|
|
|
234,349 |
|
|
|
|
|
228,077 |
|
|
|
|
|
233,905 |
|
|
|
|
|
225,465 |
|
Diluted(9) |
|
|
240,502 |
|
|
|
|
|
234,349 |
|
|
|
|
|
257,219 |
|
|
|
|
|
233,905 |
|
|
|
|
|
228,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA
(10): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
(loss) |
|
$ |
279 |
|
|
|
|
$ |
(13,976 |
) |
|
|
|
$ |
19,869 |
|
|
|
|
$ |
(51,953 |
) |
|
|
|
$ |
24,821 |
|
Add: Interest expense,
net |
|
|
7,890 |
|
|
|
|
|
7,370 |
|
|
|
|
|
7,062 |
|
|
|
|
|
22,767 |
|
|
|
|
|
20,061 |
|
Less: Other gain (loss),
net |
|
|
446 |
|
|
|
|
|
507 |
|
|
|
|
|
(13 |
) |
|
|
|
|
1,189 |
|
|
|
|
|
683 |
|
Add: Income tax effects |
|
|
4,698 |
|
|
|
|
|
2,529 |
|
|
|
|
|
3,360 |
|
|
|
|
|
12,303 |
|
|
|
|
|
10,438 |
|
Add: Depreciation |
|
|
13,501 |
|
|
|
|
|
13,285 |
|
|
|
|
|
13,498 |
|
|
|
|
|
39,975 |
|
|
|
|
|
38,694 |
|
Non-GAAP as
adjusted |
|
$ |
25,922 |
|
|
|
|
$ |
8,701 |
|
|
|
|
$ |
43,802 |
|
|
|
|
$ |
21,903 |
|
|
|
|
$ |
93,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per
Common Share: GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.06 |
) |
|
|
|
$ |
(0.21 |
) |
|
|
|
$ |
(0.04 |
) |
|
|
|
$ |
(0.53 |
) |
|
|
|
$ |
(0.17 |
) |
Diluted(8) |
|
$ |
(0.06 |
) |
|
|
|
$ |
(0.21 |
) |
|
|
|
$ |
(0.04 |
) |
|
|
|
$ |
(0.53 |
) |
|
|
|
$ |
(0.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per
Common Share: Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.00 |
|
|
|
|
$ |
(0.06 |
) |
|
|
|
$ |
0.09 |
|
|
|
|
$ |
(0.22 |
) |
|
|
|
$ |
0.11 |
|
Diluted(9) |
|
$ |
0.00 |
|
|
|
|
$ |
(0.06 |
) |
|
|
|
$ |
0.08 |
|
|
|
|
$ |
(0.22 |
) |
|
|
|
$ |
0.11 |
|
|
(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 |
|
Nine months ended |
|
|
|
September 28, 2024 |
|
June 29, 2024 |
|
September 30, 2023 |
|
September 28, 2024 |
|
September 30, 2023 |
Cost of revenue |
|
$ |
2,084 |
|
$ |
1,777 |
|
$ |
2,515 |
|
$ |
5,754 |
|
$ |
7,672 |
|
Research and
development |
|
|
4,623 |
|
|
4,497 |
|
|
5,734 |
|
|
14,232 |
|
|
17,557 |
|
Sales and
marketing |
|
|
3,241 |
|
|
2,611 |
|
|
3,706 |
|
|
9,139 |
|
|
11,371 |
|
General and
administration |
|
|
4,441 |
|
|
916 |
|
|
3,790 |
|
|
9,596 |
|
|
12,793 |
|
Total operating expenses |
|
|
12,305 |
|
|
8,024 |
|
|
13,230 |
|
|
32,967 |
|
|
41,721 |
|
|
Total stock-based compensation expense |
|
$ |
14,389 |
|
$ |
9,801 |
|
$ |
15,745 |
|
$ |
38,721 |
|
$ |
49,393 |
|
|
(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 |
|
Nine months ended |
|
|
September 28, 2024 |
|
June 29, 2024 |
|
September 30, 2023 |
|
September 28, 2024 |
|
September 30, 2023 |
GAAP net loss for
basic earnings per share |
|
$ |
(14,313 |
) |
|
$ |
(48,287 |
) |
|
$ |
(9,413 |
) |
|
$ |
(123,995 |
) |
|
$ |
(38,086 |
) |
Interest expense related to the convertible senior notes, net of
tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
GAAP net loss for
diluted earnings per share |
|
$ |
(14,313 |
) |
|
$ |
(48,287 |
) |
|
$ |
(9,413 |
) |
|
$ |
(123,995 |
) |
|
$ |
(38,086 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic common shares outstanding |
|
|
235,832 |
|
|
|
234,349 |
|
|
|
228,077 |
|
|
|
233,905 |
|
|
|
225,465 |
|
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 |
|
|
235,832 |
|
|
|
234,349 |
|
|
|
228,077 |
|
|
|
233,905 |
|
|
|
225,465 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per
common share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.06 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.53 |
) |
|
$ |
(0.17 |
) |
Diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.53 |
) |
|
$ |
(0.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
For the three-months ended September 28, 2024, June 29,
2024, and September 30, 2023, there were 1.4 million, 1.9
million and 1.9 million shares, respectively, excluded from the
calculation of diluted net loss per share, due to their
anti-dilutive effect. For the nine-months ended September 28,
2024, and September 30, 2023, there were 1.7 million, and 7.1
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 September 28, 2024,
June 29, 2024, and September 30, 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
nine-months ended September 28, 2024, and September 30,
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 September 28, 2024,
June 29, 2024, and September 30, 2023, there were no
shares excluded from the calculation of diluted net loss per share.
For the nine-months ended September 28, 2024, there were no
shares excluded from the calculation of diluted net loss per share.
For the nine-months ended September 30, 2023, there were 1.2
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. |
|
|
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 |
|
Nine months ended |
|
|
|
|
September 28, 2024 |
|
June 29, 2024 |
|
September 30, 2023 |
|
September 28, 2024 |
|
September 30, 2023 |
Non-GAAP net
income (loss) for basic earnings per share |
|
$ |
279 |
|
$ |
(13,976 |
) |
|
$ |
19,869 |
|
$ |
(51,953 |
) |
|
$ |
24,821 |
|
Interest expense related to the convertible senior notes, net of
tax |
|
|
— |
|
|
— |
|
|
|
1,359 |
|
|
— |
|
|
|
— |
|
Non-GAAP net
income (loss) for diluted earnings per share |
|
$ |
279 |
|
$ |
(13,976 |
) |
|
$ |
21,228 |
|
$ |
(51,953 |
) |
|
$ |
24,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic common shares outstanding |
|
|
235,832 |
|
|
234,349 |
|
|
|
228,077 |
|
|
233,905 |
|
|
|
225,465 |
|
Dilutive effect of restricted and performance share units |
|
|
4,670 |
|
|
— |
|
|
|
1,123 |
|
|
— |
|
|
|
2,005 |
|
Dilutive effect of employee stock purchase plan |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
70 |
|
Dilutive effect of 2024 convertible senior notes(a) |
|
|
— |
|
|
— |
|
|
|
1,899 |
|
|
— |
|
|
|
— |
|
Dilutive effect of 2027 convertible senior notes(b) |
|
|
— |
|
|
— |
|
|
|
26,120 |
|
|
— |
|
|
|
— |
|
Dilutive effect of 2028 convertible senior notes(c) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
1,195 |
|
Weighted average
dilutive common shares outstanding |
|
|
240,502 |
|
|
234,349 |
|
|
|
257,219 |
|
|
233,905 |
|
|
|
228,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.00 |
|
$ |
(0.06 |
) |
|
$ |
0.09 |
|
$ |
(0.22 |
) |
|
$ |
0.11 |
|
Diluted |
|
$ |
0.00 |
|
$ |
(0.06 |
) |
|
$ |
0.08 |
|
$ |
(0.22 |
) |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
For the three-months
ended September 28, 2024, and June 29, 2024, there were
1.4 million, and 1.9 million shares, respectively, excluded from
the calculation of diluted net income (loss) per share, due to
their anti-dilutive effect. For the three-months ended
September 30, 2023, there were no shares excluded from the
calculation of diluted net income per share. For the nine-months
ended September 28, 2024, and September 30, 2023, there
were 1.7 million, and 7.1 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 September 28, 2024, and June 29, 2024,
there were 26.1 million shares excluded from the calculation of
diluted net income (loss) per share, due to their anti-dilutive
effect. For the three-months ended September 30, 2023, there
were no shares excluded from the calculation of diluted net income
per share. For each of the nine-months ended September 28,
2024, and September 30, 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 September 28, 2024, June 29, 2024, and
September 30, 2023, there were no shares excluded from the
calculation of diluted net income (loss) per share. For each of the
nine-months ended September 28, 2024, and September 30,
2023, there were no shares excluded from the calculation of diluted
net income (loss) per share. |
(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. |
|
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 |
|
Nine months ended |
|
|
September 28, 2024 |
|
June 29, 2024 |
|
September 30, 2023 |
|
September 28, 2024 |
|
September 30, 2023 |
Net cash provided by (used in) operating activities |
|
$ |
44,563 |
|
|
$ |
(59,954 |
) |
|
$ |
(29,793 |
) |
|
$ |
8,635 |
|
|
$ |
(30,142 |
) |
Purchase of property and
equipment |
|
|
(24,090 |
) |
|
|
(14,582 |
) |
|
|
(13,318 |
) |
|
|
(46,748 |
) |
|
|
(40,900 |
) |
Free cash flow |
|
$ |
20,473 |
|
|
$ |
(74,536 |
) |
|
$ |
(43,111 |
) |
|
$ |
(38,113 |
) |
|
$ |
(71,042 |
) |
|
Infinera CorporationCondensed
Consolidated Balance Sheets(In thousands, except
par values)(Unaudited)
|
September 28,2024 |
|
December 30,2023 |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
115,089 |
|
|
$ |
172,505 |
|
Short-term restricted cash |
|
42 |
|
|
|
517 |
|
Accounts receivable, net |
|
288,265 |
|
|
|
381,981 |
|
Inventory |
|
356,119 |
|
|
|
431,163 |
|
Prepaid expenses and other current assets |
|
162,560 |
|
|
|
129,218 |
|
Total current assets |
|
922,075 |
|
|
|
1,115,384 |
|
Property, plant and equipment, net |
|
231,190 |
|
|
|
206,997 |
|
Operating lease right-of-use assets |
|
39,359 |
|
|
|
39,973 |
|
Intangible assets, net |
|
18,050 |
|
|
|
24,819 |
|
Goodwill |
|
237,509 |
|
|
|
240,566 |
|
Long-term restricted cash |
|
446 |
|
|
|
837 |
|
Other
long-term assets |
|
57,128 |
|
|
|
50,662 |
|
Total assets |
$ |
1,505,757 |
|
|
$ |
1,679,238 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
259,225 |
|
|
$ |
299,005 |
|
Accrued expenses and other current liabilities |
|
137,078 |
|
|
|
110,758 |
|
Accrued compensation and related benefits |
|
48,683 |
|
|
|
85,203 |
|
Short-term debt, net |
|
10,473 |
|
|
|
25,512 |
|
Accrued warranty |
|
12,635 |
|
|
|
17,266 |
|
Deferred revenue |
|
116,332 |
|
|
|
136,248 |
|
Total current liabilities |
|
584,426 |
|
|
|
673,992 |
|
Long-term debt, net |
|
667,205 |
|
|
|
658,756 |
|
Long-term accrued warranty |
|
12,554 |
|
|
|
15,934 |
|
Long-term deferred revenue |
|
21,626 |
|
|
|
21,332 |
|
Long-term deferred tax liability |
|
1,770 |
|
|
|
1,805 |
|
Long-term operating lease liabilities |
|
44,563 |
|
|
|
47,464 |
|
Other
long-term liabilities |
|
39,767 |
|
|
|
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
September 28, 2024 and December 30,
2023 Issued and outstanding shares - 236,296 as
of September 28, 2024 and 230,994 as of December 30,
2023 |
|
236 |
|
|
|
231 |
|
Additional paid-in capital |
|
2,012,820 |
|
|
|
1,976,014 |
|
Accumulated other comprehensive loss |
|
(30,409 |
) |
|
|
(34,848 |
) |
Accumulated deficit |
|
(1,848,801 |
) |
|
|
(1,724,806 |
) |
Total stockholders' equity |
|
133,846 |
|
|
|
216,591 |
|
Total liabilities and stockholders’ equity |
$ |
1,505,757 |
|
|
$ |
1,679,238 |
|
|
Infinera CorporationCondensed
Consolidated Statements of Cash Flows(In
thousands) (Unaudited)
|
Nine months ended |
|
September 28, 2024 |
|
September 30, 2023 |
Cash
Flows from Operating Activities: |
|
|
|
Net loss |
$ |
(123,995 |
) |
|
$ |
(38,086 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
Depreciation and amortization |
|
46,744 |
|
|
|
59,403 |
|
Non-cash restructuring charges and other related costs |
|
32 |
|
|
|
1,183 |
|
Amortization of debt issuance costs and discount |
|
2,750 |
|
|
|
2,970 |
|
Operating lease expense |
|
6,905 |
|
|
|
6,402 |
|
Stock-based compensation expense |
|
38,721 |
|
|
|
49,393 |
|
Other, net |
|
139 |
|
|
|
(683 |
) |
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
|
92,364 |
|
|
|
89,248 |
|
Inventory |
|
74,527 |
|
|
|
(82,983 |
) |
Prepaid expenses and other current assets |
|
(48,141 |
) |
|
|
16,811 |
|
Accounts payable |
|
(57,127 |
) |
|
|
(27,798 |
) |
Accrued expenses and other current liabilities |
|
(5,386 |
) |
|
|
(46,163 |
) |
Deferred revenue |
|
(18,898 |
) |
|
|
(59,839 |
) |
Net cash provided by (used in) operating activities |
|
8,635 |
|
|
|
(30,142 |
) |
Cash
Flows from Investing Activities: |
|
|
|
Purchase of property and equipment |
|
(46,748 |
) |
|
|
(40,900 |
) |
Net cash used in investing activities |
|
(46,748 |
) |
|
|
(40,900 |
) |
Cash
Flows from Financing Activities: |
|
|
|
Proceeds from issuance of 2028 Notes, net of discount |
|
— |
|
|
|
98,751 |
|
Repayment of 2024 Notes |
|
(18,747 |
) |
|
|
(83,446 |
) |
Payment of debt issuance cost |
|
— |
|
|
|
(2,108 |
) |
Proceeds from asset-based revolving credit facility |
|
50,000 |
|
|
|
— |
|
Repayment of asset-based revolving credit facility |
|
(40,000 |
) |
|
|
— |
|
Repayment of mortgage payable |
|
(354 |
) |
|
|
(381 |
) |
Principal payments on finance lease obligations |
|
(469 |
) |
|
|
(784 |
) |
Payment of term license obligation |
|
(7,882 |
) |
|
|
(7,720 |
) |
Proceeds from issuance of common stock |
|
5 |
|
|
|
14,931 |
|
Tax withholding paid on behalf of employees for net share
settlement |
|
(1,860 |
) |
|
|
(2,217 |
) |
Net cash (used in) provided by financing activities |
|
(19,307 |
) |
|
|
17,026 |
|
Effect
of exchange rate changes on cash |
|
(862 |
) |
|
|
(8,551 |
) |
Net
change in cash, cash equivalents and restricted cash |
|
(58,282 |
) |
|
|
(62,567 |
) |
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) |
$ |
115,577 |
|
|
$ |
126,636 |
|
|
Infinera CorporationCondensed
Consolidated Statements of Cash Flows(In
thousands) (Unaudited)
|
Nine months ended |
|
September 28, 2024 |
|
September 30, 2023 |
Supplemental disclosures of cash flow
information: |
|
|
|
Cash paid for income taxes, net |
$ |
18,205 |
|
$ |
9,955 |
|
Cash paid for interest |
$ |
25,967 |
|
$ |
21,579 |
|
Supplemental schedule of non-cash investing and financing
activities: |
|
|
|
Property and equipment included in accounts payable and accrued
liabilities |
$ |
26,779 |
|
$ |
18,529 |
|
Transfer of inventory to fixed assets |
$ |
— |
|
$ |
1,207 |
|
Unpaid term licenses (included in accounts payable, accrued
liabilities and other long-term liabilities) |
$ |
16,380 |
|
$ |
16,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reconciliation of cash, cash equivalents and restricted
cash to the condensed consolidated balance sheets (in
thousands):
|
September 28, 2024 |
|
September 30, 2023 |
Cash and cash equivalents |
$ |
115,089 |
|
$ |
123,927 |
|
Short-term restricted cash |
|
42 |
|
|
1,725 |
|
Long-term restricted cash |
|
446 |
|
|
984 |
|
Total cash, cash equivalents and restricted cash |
$ |
115,577 |
|
$ |
126,636 |
|
|
Infinera CorporationSupplemental
Financial Information(Unaudited)
|
|
|
Q4'22 |
|
Q1'23 |
|
Q2'23 |
|
Q3'23 |
|
Q4'23 |
|
Q1'24 |
|
Q2'24 |
|
Q3'24 |
GAAP
Revenue $(Mil) |
|
$ |
485.9 |
|
|
$ |
392.1 |
|
|
$ |
376.2 |
|
|
$ |
392.4 |
|
|
$ |
453.5 |
|
|
$ |
306.9 |
|
|
$ |
342.7 |
|
|
$ |
354.4 |
|
GAAP Gross Margin
% |
|
|
37.1 |
% |
|
|
37.5 |
% |
|
|
38.0 |
% |
|
|
40.3 |
% |
|
|
38.6 |
% |
|
|
36.0 |
% |
|
|
39.6 |
% |
|
|
39.8 |
% |
|
Non-GAAP Gross Margin %(1) |
|
|
38.7 |
% |
|
|
38.8 |
% |
|
|
39.3 |
% |
|
|
41.9 |
% |
|
|
39.6 |
% |
|
|
36.6 |
% |
|
|
40.3 |
% |
|
|
40.4 |
% |
GAAP
Revenue Composition: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic % |
|
|
61 |
% |
|
|
60 |
% |
|
|
58 |
% |
|
|
59 |
% |
|
|
68 |
% |
|
|
54 |
% |
|
|
58 |
% |
|
|
60 |
% |
International
% |
|
|
39 |
% |
|
|
40 |
% |
|
|
42 |
% |
|
|
41 |
% |
|
|
32 |
% |
|
|
46 |
% |
|
|
42 |
% |
|
|
40 |
% |
Customers >10%
of Revenue |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Cash
Related Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from
Operations $(Mil) |
|
$ |
(0.6 |
) |
|
$ |
(1.8 |
) |
|
$ |
1.4 |
|
|
$ |
(29.7 |
) |
|
$ |
79.6 |
|
|
$ |
24.0 |
|
|
$ |
(59.9 |
) |
|
$ |
44.5 |
|
Capital
Expenditures $(Mil) |
|
$ |
8.3 |
|
|
$ |
16.8 |
|
|
$ |
10.8 |
|
|
$ |
13.3 |
|
|
$ |
21.4 |
|
|
$ |
8.1 |
|
|
$ |
14.6 |
|
|
$ |
24.0 |
|
Depreciation & Amortization $(Mil) |
|
$ |
19.8 |
|
|
$ |
19.6 |
|
|
$ |
19.8 |
|
|
$ |
20.0 |
|
|
$ |
19.4 |
|
|
$ |
15.4 |
|
|
$ |
15.6 |
|
|
$ |
15.7 |
|
DSOs(2) |
|
|
79 |
|
|
|
78 |
|
|
|
79 |
|
|
|
76 |
|
|
|
77 |
|
|
|
79 |
|
|
|
76 |
|
|
|
74 |
|
Inventory
Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw Materials
$(Mil) |
|
$ |
48.7 |
|
|
$ |
67.6 |
|
|
$ |
85.4 |
|
|
$ |
110.4 |
|
|
$ |
133.6 |
|
|
$ |
132.5 |
|
|
$ |
119.4 |
|
|
$ |
105.2 |
|
Work in Process
$(Mil) |
|
$ |
66.6 |
|
|
$ |
71.8 |
|
|
$ |
71.9 |
|
|
$ |
69.9 |
|
|
$ |
68.4 |
|
|
$ |
68.6 |
|
|
$ |
68.7 |
|
|
$ |
67.6 |
|
Finished Goods
$(Mil) |
|
$ |
259.6 |
|
|
$ |
273.6 |
|
|
$ |
270.1 |
|
|
$ |
276.6 |
|
|
$ |
229.2 |
|
|
$ |
219.6 |
|
|
$ |
196.1 |
|
|
$ |
183.3 |
|
Total
Inventory $(Mil) |
|
$ |
374.9 |
|
|
$ |
413.0 |
|
|
$ |
427.4 |
|
|
$ |
456.9 |
|
|
$ |
431.2 |
|
|
$ |
420.7 |
|
|
$ |
384.2 |
|
|
$ |
356.1 |
|
Inventory
Turns(3) |
|
|
3.4 |
|
|
|
2.4 |
|
|
|
2.2 |
|
|
|
2.1 |
|
|
|
2.5 |
|
|
|
1.8 |
|
|
|
2.0 |
|
|
|
2.3 |
|
Worldwide
Headcount |
|
|
3,267 |
|
|
|
3,351 |
|
|
|
3,365 |
|
|
|
3,369 |
|
|
|
3,389 |
|
|
|
3,323 |
|
|
|
3,334 |
|
|
|
3,340 |
|
Weighted
Average Shares Outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
219,921 |
|
|
|
222,393 |
|
|
|
225,922 |
|
|
|
228,077 |
|
|
|
230,509 |
|
|
|
231,533 |
|
|
|
234,349 |
|
|
|
235,832 |
|
Diluted |
|
|
258,030 |
|
|
|
265,921 |
|
|
|
262,712 |
|
|
|
257,219 |
|
|
|
259,210 |
|
|
|
260,980 |
|
|
|
265,591 |
|
|
|
267,999 |
|
|
|
(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. |
|
|
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