Infinera Corporation Reports Second Quarter 2024 Financial Results

SAN JOSE, Calif. -- Infinera Corporation (NASDAQ: INFN) today released financial results for its second quarter ended June 29, 2024.

GAAP revenue for the quarter was $342.7 million compared to $306.9 million in the first quarter of 2024 and $376.2 million in the second quarter of 2023.

GAAP gross margin for the quarter was 39.6% compared to 36.0% in the first quarter of 2024 and 38.0% in the second quarter of 2023. GAAP operating margin for the quarter was (8.7)% compared to (14.0)% in the first quarter of 2024 and (3.8)% in the second quarter of 2023.

GAAP net loss for the quarter was $(48.3) million, or $(0.21) per diluted share, compared to net loss of $(61.4) million, or $(0.27) per diluted share, in the first quarter of 2024, and net loss of $(20.3) million, or $(0.09) per diluted share, in the second quarter of 2023.

Non-GAAP gross margin for the quarter was 40.3% compared to 36.6% in the first quarter of 2024 and 39.3% in the second quarter of 2023. Non-GAAP operating margin for the quarter was (1.3)% compared to (8.4)% in the first quarter of 2024 and 2.8% in the second quarter of 2023.

Non-GAAP net loss for the quarter was $(14.0) million, or $(0.06) per diluted share, compared to non-GAAP net loss of $(38.3) million, or $(0.17) per diluted share, in the first quarter of 2024, and non-GAAP net loss of $(0.7) million, or $(0.00) per diluted share, in the second quarter of 2023.

We ended the quarter with cash, cash equivalents and restricted cash at $115.7 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 “I am pleased with our second quarter results with revenue, gross margin and operating margin all above the midpoint of our outlook range. While the timing and pace of customer demand recovery remain uncertain, we continued our design-win momentum across our optical networking product portfolio in the quarter, with bookings up both sequentially and on a year-over-year basis. We ended Q2 with a book-to-bill ratio above 1.”

“We remain excited about our pending combination with Nokia. Customers see value in accelerating the pace of innovation to lower both the cost per bit and power per bit required to stay ahead of the capacity demands fueled by high-bandwidth usage applications including AI. Together, the combined business would have a broadened portfolio, greater scale and geographic reach, while leveraging vertically integrated optical semiconductor technologies developed here in the U.S.”

Pending Merger with Nokia

On June 27, 2024, Infinera, Nokia Corporation, a company incorporated under the laws of the Republic of Finland (“Nokia”) 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.