Infinera Corporation Reports Second Quarter Financial Results

Tag : international adapter

Management Commentary
"Our second quarter results reflect strong shipments of both ourchassis and tributary adapter modules," said Jagdeep Singh,president and chief executive officer of Infinera. "We grewrevenues from international customers to 22 percent and added twonew customers in the quarter to bring our total roster to 44. Wegenerated operating profits and cash from operations whilemaintaining our investments to expand our technology lead as theworld's leading optical network based on photonic integration.
"We are committed to growing our business within markets where wehave established a beach-head and to continue expanding ourcustomer base in both existing and new markets. We have identifiedour highest growth opportunities -- international markets, globaltier 1 carriers, new adjacent markets including metro access andultra long haul, and under-penetrated North American markets. Weare implementing strategic initiatives to expand share in each ofthese market segments."
Singh noted several second quarter performance highlights:
Conference Call Information:
Infinera will host a conference call for analysts and investors todiscuss its second quarter results today at 5:00 p.m. Eastern Time(2:00 p.m. Pacific Time). A live webcast of the conference callwill also be accessible from the "Investor Relations" section ofthe company's website at www.infinera.com . Following the webcast, an archived version will be available onthe website for 30 days. To hear the replay, parties in the UnitedStates and Canada should call 1-866-503-3213. International partiescan access the replay at +1-203-369-1862.
About Infinera
Infinera provides Digital Optical Networking systems totelecommunications carriers worldwide. Infinera's systems areunique in their use of a breakthrough semiconductor technology: thePhotonic Integrated Circuit (PIC). Infinera's systems and PICtechnology are designed to provide optical networks with simplerand more flexible engineering and operations, fastertime-to-service, and the ability to rapidly deliver differentiatedservices without reengineering their optical infrastructure. Formore information, please visit www.infinera.com .
Forward-Looking Statements -
This press release contains forward-looking statements, includingstatements relating to Infinera's ability to change the economicsof optical communications networks and design products that areflexible and economical for our customers, our belief that we willbe able to expand our technology lead as the world's leadingoptical network based on photonic integration, our belief we willbe able to grow our business within existing markets and tocontinue expanding our customer base in both existing and newmarkets, future benefits and scalability of our products, includingthe future scalability of 8 Terabits/second of total capacity forour ILS2 system, and our belief that our recent demonstration showsprogress towards making 100 GbE products and services a commercialreality in the future. These forward-looking statements involverisks and uncertainties, as well as assumptions that if they do notfully materialize or prove incorrect, could cause our results todiffer materially from those expressed or implied by suchforward-looking statements. The risks and uncertainties that couldcause our results to differ materially from those expressed orimplied by such forward-looking statements include our ability toreact to trends and challenges in our business and the markets inwhich we operate; our ability to anticipate market needs anddevelop new or enhanced products to meet those needs; the adoptionrate of our products; our ability to establish and maintainsuccessful relationships with our customers; our ability to reducecustomer concentration; our ability to compete in our industry;fluctuations in demand, sales cycles and prices for our productsand services; shortages or price fluctuations in our supply chain;our ability to protect our intellectual property rights; generalpolitical, economic and market conditions and events; and otherrisks and uncertainties described more fully in our documents filedwith or furnished to the Securities and Exchange Commission (SEC).More information about these and other risks that may impactInfinera's business are set forth in our annual report on Form10-K, which was filed with the SEC on February 19, 2008, as well assubsequent reports filed with the SEC. All forward-lookingstatements in this press release are based on information availableto us as of the date hereof, and we assume no obligation to updatethese forward-looking statements.
Non-GAAP and other Financial Measures
In addition to disclosing financial measures prepared in accordancewith United States Generally Accepted Accounting Principles (GAAP),this press release and the accompanying tables contain certainnon-GAAP and other financial measures that reflect invoicedshipments, adjusted GAAP revenue and exclude non-GAAP non-cashstock-based compensation and warrant valuation expenses. For adescription of these non-GAAP financial measures, including thereasons why management uses each measure, and reconciliations ofthese non-GAAP financial measures to the most directly comparableGAAP financial measures, please see the section of the accompanyingtables titled "GAAP to Non-GAAP Invoiced Shipment and Adjusted GAAPReconciliation" as well as the accompanying notes on the use ofcertain non-GAAP measures. We anticipate disclosing forward-lookingnon-GAAP and other financial information in our conference call todiscuss our second quarter of 2008 results, including an estimateof adjusted GAAP earnings for the third quarter of 2008 thatexcludes revenues and costs previously recognized on an invoicedshipments basis and non-GAAP non-cash stock-based compensationexpenses related to our equity awards and the right to purchasecommon stock under our Employee Stock Purchase Plan in the period.
A copy of this press release can be found on the investor relationspage of Infinera's website at www.infinera.com .
Infinera Corporation and the Infinera logo are trademarks orregistered trademarks of Infinera Corporation. All other trademarksused or mentioned herein belong to their respective owners.
Use of Non-GAAP Invoiced Shipments / Adjusted GAAP Information:
Prior to the second quarter of 2008, in order to supplement ourcondensed consolidated financial statements presented on a GAAPbasis, Infinera used invoiced shipment measures of operatingresults and net income. Invoiced shipment measures reflected GAAPresults adjusted for changes in our deferred revenue and deferredcost of inventory balances from the prior period. We furtherpresented non-GAAP measures of operating results, net income andnet income per share, which included invoiced shipments andexcluded non-GAAP stock-based compensation expense and warrantvaluation expense. These adjustments to our GAAP results were madeto provide both management and investors with an understanding ofInfinera's underlying operating results and trends as they wouldhave been reflected had we established vendor specific objectiveevidence ("VSOE") of fair value for our service offerings and notbeen required to recognize revenue ratably.
Effective April 2008, we had established VSOE of fair value formost of our service offerings. Therefore beginning in the secondquarter of 2008, we have used adjusted GAAP measures of operatingresults and net income. Adjusted GAAP results reflect our GAAPresults reduced for amounts released from deferred revenue anddeferred cost of inventory balances recorded prior to the secondquarter of 2008 and previously reported in our invoiced shipmentresults. Deferred services and deferred ratable and product revenueand cost amounts recorded after March 29, 2008 have not beenadjusted and are recognized on a GAAP basis in arriving at theadjusted GAAP results. We have continued to present non-GAAPmeasures of operating results, net income and net income per share,which include adjusted GAAP results and exclude non-GAAPstock-based compensation expense.
We believe these adjustments are appropriate to enhance an overallunderstanding of our underlying financial performance and also ourprospects for the future and are considered by management for thepurpose of making operational decisions. In addition, these resultsare the primary indicators management uses as a basis for ourplanning and forecasting of future periods. The presentation ofthis additional information is not meant to be considered inisolation or as a substitute for net income or basic and dilutednet income per share prepared in accordance with GAAP. Non-GAAPfinancial measures are not based on a comprehensive set ofaccounting rules or principles and are subject to limitations.