San Jose, Calif. – May 13, 2024, 4:03 p.m. ET – Infinera Corporation (NASDAQ:INFN, news, filings) has issued a press release with a summary of key financial results for the fourth quarter and fiscal year ended December 30, 2023. The press release is also published on Infinera’s Investor Relations website.
GAAP revenue for the quarter was $453.5 million compared to $392.4 million in the third quarter of 2023 and $485.9 million in the fourth quarter of 2022.
GAAP gross margin for the quarter was 38.6% compared to 40.3% in the third quarter of 2023 and 37.1% in the fourth quarter of 2022. GAAP operating margin for the quarter was 2.5% compared to 2.0% in the third quarter of 2023 and 5.2% in the fourth quarter of 2022.
GAAP net income for the quarter was $12.9 million, or $0.06 per diluted share, compared to net loss of $(9.4) million, or $(0.04) per diluted share, in the third quarter of 2023, and net income of $33.5 million, or $0.14 per diluted share, in the fourth quarter of 2022.
Non-GAAP gross margin for the quarter was 39.6% compared to 41.9% in the third quarter of 2023 and 38.7% in the fourth quarter of 2022. Non-GAAP operating margin for the quarter was 7.2% compared to 7.7% in the third quarter of 2023 and 10.5% in the fourth quarter of 2022.
Non-GAAP net income for the quarter was $28.6 million, or $0.12 per diluted share, compared to $19.9 million, or $0.08 per diluted share, in the third quarter of 2023, and $40.3 million, or $0.16 per diluted share, in the fourth quarter of 2022.
GAAP revenue for the year was $1,614.1 million compared to $1,573.2 million in 2022. GAAP gross margin for the year was 38.6% compared to 34.1% in 2022. GAAP operating margin for the year was (0.3)% compared to (3.8)% in 2022. GAAP net loss for the year was $(25.2) million, or $(0.11) per diluted share, compared to $(76.0) million, or $(0.35) per diluted share, in 2022.
Non-GAAP gross margin for the year was 39.9% compared to 37.3% in 2022. Non-GAAP operating margin for the year was 5.4% compared to 4.4% in 2022. Non-GAAP net income for the year was $53.4 million, or $0.23 per diluted share, compared to $26.1 million, or $0.12 per diluted share, in 2022.
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.
On May 6, 2024, the Company announced that it expected to file its fiscal year 2023 Annual Report on Form 10-K (“Form 10-K”) on or before May 13, 2024. Due to process delays in the finalization of the audit of its fiscal year 2023 financial statements, the Company currently expects to file its Form 10-K on or before May 17, 2024.
As a result, the Company currently expects to file its Quarterly Report on Form 10-Q for its fiscal quarter ended March 30, 2024 on or before May 21, 2024.
Fourth Quarter 2023 Investor Slides to be Made Available Online After the Filing of Form 10-K
Investor slides reviewing Infinera’s fourth quarter of 2023 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 after filing its Form 10-K.
The full press release, including the Condensed Consolidated Statements of Operations, GAAP to Non-GAAP Reconciliations, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows, and Supplemental Financial Information is also available.
Contacts:
Media:
Anna Vue
Tel. +1 (916) 595-8157
avue@infinera.com
Investors:
Amitabh Passi
Head of Investor Relations
Tel. +1 (669) 295-1489
apassi@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 Company’s expectations related to the timing of filing of its Form 10-K for the fiscal year ended December 30, 2023, its expectations related to the filing of its Form 10-Q for the fiscal quarter ended March 30, 2024 and its expectations related to the furnishing of the investor slides reviewing the Company’s fourth quarter of 2023 financial results. Infinera’s auditors have not completed their audit of its financial results for the fiscal 2023 period, their review of its financial results for the fourth quarter of fiscal 2023 or their review of its financial results for the first quarter of fiscal 2024.
Infinera’s financial results for the fourth quarter of and full fiscal year 2023 are subject to all aspects of the final quarterly and annual review process and may change as a result of new information that arises, or new determinations that are made, in this process.
These forward-looking statements are based on estimates and information available to Infinera as of the date hereof and are not guarantees of 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 but are not limited to, Infinera’s expectations regarding revenue, gross margin, operating expenses, cash flows and other financial items and the drivers related to these; 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, including delays, shortages, components that have been discontinued and increased costs, 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 period reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 27, 2023, and amended February 29, 2024, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, filed with the SEC on February 29, 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 summary of key financial results and the accompanying tables contain certain non-GAAP financial measures that exclude in certain cases stock-based compensation expenses, amortization of acquired intangible assets, restructuring and other related costs, inventory related charges, global distribution center transition costs, warehouse fire loss (recovery), litigation charges, gain on extinguishment of debt, 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 summary of key financial results 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.
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