Infinera Corp. (NASDAQ: INFN) says that the revenue momentum the DTN-X created last year continued into the first quarter of 2013 and likely won’t abate anytime soon. Meanwhile, it began delivering prototypes of new technology during the quarter as well.
The company reported GAAP revenues for the quarter ended March 30, 2013 of $124.6 million, at the upper end of its guidance (see "Infinera revenues improve in 4Q12 and fiscal 2012"). As the first calendar quarter is traditionally slow, management saw the fact that this figure was only $3.5 million off from the previous quarter as a good sign – particularly when compared to the $104.7 million in revenue Infinera earned in the first quarter of 2012.
GAAP gross margin for the quarter was 34%, on par with the previous quarter but less than the 39% enjoyed in the first quarter of 2012. The most recent quarter saw a GAAP net loss of $15.3 million ($0.13 per share), versus a net loss of $16.1 million ($0.14 per share) in 4Q12 and $20.6 million ($0.19 per share) in the first quarter of 2012.
The DTN-X packet optical transport system was the quarter’s star, with six additional customers brought onboard – two of which were new to the company. The wins brought the number of DTN-X customers to 27. Infinera’s DTN platform also gained traction, with two new customers signed on in the quarter.
The company expects to ride this wave into the next quarter, thanks to a significant order backlog at the end of the March 30 quarter and the keen interest carriers have in 100-Gbps technology, according to what Infinera CEO, President, and Director Tom Fallon reported during an analyst call yesterday. The company forecasts that revenues in the current quarter will range somewhere between $130 million and $140 million. CFO Ita Brennan expressed strong confidence on the call that the company will see near 20% revenue growth for 2013.
Meanwhile, the company appears to have new technology in the pipeline that it will begin to roll out to prospective customers this quarter. Brennan noted that she expects to see operating expenses of approximately $53 million to $54 million when this quarter concludes, “reflecting increased R&D costs related to some prototypes to be delivered in the quarter and some increases in sales compensation expenses.” Infinera sources today declined to comment on the nature of these prototypes.
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