Infinera Corporation reports second quarter 2021 financial results

SAN JOSE, Calif. -- Infinera Corporation (NASDAQ: INFN) today released financial results for its second quarter ended June 26, 2021.

GAAP revenue for the quarter was $338.2 million compared to $330.9 million in the first quarter of 2021 and $331.6 million in the second quarter of 2020.

GAAP gross margin for the quarter was 35.6% compared to 35.4% in the first quarter of 2021 and 29.4% in the second quarter of 2020. GAAP operating margin for the quarter was (6.9)% compared to (7.0)% in the first quarter of 2021 and (13.5)% in the second quarter of 2020.

GAAP net loss for the quarter was $(35.6) million, or $(0.17) per share, compared to $(48.3) million, or $(0.24) per share, in the first quarter of 2021, and $(61.6) million, or $(0.33) per share, in the second quarter of 2020.

Non-GAAP revenue for the quarter was $339.2 million compared to $331.9 million in the first quarter of 2021 and $332.6 million in the second quarter of 2020.

Non-GAAP gross margin for the quarter was 37.7% compared to 37.6% in the first quarter of 2021 and 33.8% in the second quarter of 2020. Non-GAAP operating margin for the quarter was 0.8% compared to 0.4% in the first quarter of 2021 and (1.8)% in the second quarter of 2020.

Non-GAAP net loss for the quarter was $(6.0) million, or $(0.03) per share, compared to net loss of $(5.5) million, or $(0.03) per share, in the first quarter of 2021, and a net loss of $(15.6) million, or $(0.08) per share, in the second quarter of 2020.

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, “Q2 was another quarter of strong demand, with double digit year-over-year growth in product bookings, a book-to-bill ratio above one and record backlog at quarter end. Revenue was within our outlook range, despite significant industry-wide supply chain challenges, while gross margin and operating margin exceeded the high end of our outlook ranges. For the first half of FY’21, we delivered double digit year-over-year bookings growth and expanded each of gross margin and operating margin by over 600 basis points.

Our innovative new products continued to gain momentum in Q2 with additional customer wins and expanded network footprint. Backed by a highly focused strategy to gain share and grow our business, these results reinforce our confidence in and commitment to achieving the target business model we outlined during our recent Investor Day.”

Financial Outlook

Infinera’s outlook for the third quarter ending September 25, 2021 is as follows:

• GAAP revenue is expected to be $354 million +/- $15 million. Non-GAAP revenue is expected to be $355 million +/- $15 million.
• GAAP gross margin is expected to be 33.0% +/- 150 bps. Non-GAAP gross margin is expected to be 35.5% +/- 150 bps.
• GAAP operating expenses are expected to be $148 million +/- $2.5 million. Non-GAAP operating expenses are expected to be $128 million +/- $2 million.
• GAAP operating margin is expected to be (9.5)% +/- 200 bps. Non-GAAP operating margin is expected to be (1.0%) +/- 200 bps.