Infinera Reaffirms Q2 Guidance and Provides Initial Q3 and Updated FY08 Revenue Outlooks
June 16 2008 - 4:05PM
Marketwired
SUNNYVALE, CA today reaffirmed its guidance for the second
fiscal quarter ending June 28, 2008; provided initial revenue
guidance for its third quarter ending September 27, 2008; and
provided an updated revenue outlook for fiscal year 2008 ending
December 27, 2008 that is lower than its previous annual
outlook.
The Company provided the financial update today in conjunction
with its separate announcement that Deutsche Telekom (DT), one of
the world's largest telecom carriers, has selected a new DWDM
system from Infinera for its pan-European network. This represents
a major win for Infinera at a Tier One carrier. As a result of the
initial deployment of the Infinera DTN system with DT, Infinera
expects to incur one-time charges totaling approximately $4 million
during its second and third quarters.
For its second quarter, the Company reaffirmed its expectation
to achieve results within its original guidance set on April 22 of
adjusted GAAP revenues between $88 million and $90 million and EPS
between $0.01 per share and $0.02 per share. The Company also
indicated that it expects to have added at least two new customers
in the June quarter, not including DT. The Company will announce
its final results for the second quarter on Tuesday, July 22 after
the market closes.
For its third quarter, the Company is providing initial
preliminary guidance of adjusted GAAP revenue in the range of $75
million to $80 million. As a result, the Company now expects
adjusted GAAP revenue for fiscal 2008 to grow approximately 10
percent from its fiscal 2007 invoiced shipments of $309.3 million.
Previously, the Company had anticipated year over year adjusted
GAAP revenue growth of approximately 25 percent.
The Company attributed the anticipated quarter over quarter
revenue decline in the third quarter to current indications that
the existing North American customer base will purchase less
product in Q3 than previously anticipated. The Company believes
this is related to the timing of new network builds at existing
customers and the sales cycle with potential new customer wins,
along with a product transition associated with its recently
announced new system.
Jagdeep Singh, President and Chief Executive Officer of
Infinera, said: "Our expected Q2 results and the recently announced
DT win demonstrate that Infinera continues to win in the DWDM
marketplace. We believe this is because we offer the world's best
optical solutions and because we provide the only viable path with
which customers can scale their networks to meet bandwidth growth
needs into the next decade.
"While the preliminary outlook for our fiscal third quarter is
lower than anticipated, we do not believe we have lost any existing
customers, we do not believe that we have yielded any market share,
and we are confident we will continue to add new customers during
the rest of the year. Today's win with Deutsche Telekom and ongoing
engagements with other leading carriers worldwide give us continued
confidence in the strength of the long term strategy and growth
outlook for Infinera."
Footnote: Adjusted GAAP results exclude the impact of the roll
off of certain GAAP ratable revenues which were previously included
as invoiced shipments and the exclusion of non-GAAP noncash
stock-based compensation from our costs and expenses. Prior to the
achievement of VSOE for our services, we presented our results on
an invoiced shipment basis. Since we achieved VSOE, we now report
our non-GAAP results on an Adjusted GAAP basis. There is no
substantive difference between Adjusted GAAP and Invoiced Shipment
results for the periods addressed in this release.
CONFERENCE CALL TODAY
An investment community conference call to discuss today's
announcements will be held today, Monday, June 16th at 2PM PDT/5PM
EDT and will be accessible live and on an archived basis as
follows:
Audio Webcast: www.infinera.com, click on investors.
Live Dial-in: 1-800-593-7215 (toll-free)
1-210-234-0004 (international)
Passcode: Pic
Telephone Replay: 1-800-937-6972 (toll-free)
1-402-220-3138 (international)
No passcode.
About Infinera
Infinera provides Digital Optical Networking systems to
telecommunications carriers worldwide. Infinera's systems are
unique in their use of a breakthrough semiconductor technology: the
photonic integrated circuit (PIC). Infinera's systems and PIC
technology are designed to provide optical networks with simpler
and more flexible engineering and operations, faster
time-to-service, and the ability to rapidly deliver differentiated
services without reengineering their optical infrastructure. For
more information, please visit www.infinera.com.
Forward-Looking Statements
This press release contains certain forward-looking statements
based on current expectations, forecasts and assumptions that
involve risks and uncertainties. These statements are based on
information available to Infinera as of the date hereof; and actual
results could differ materially from those stated or implied, due
to risks and uncertainties. Forward-looking statements include
statements regarding Infinera's expectations, beliefs, intentions
or strategies regarding the future such as the expectations, plans,
prospects, or financial results for Infinera, which include but are
not limited to the outlook stated above, the benefits and
capabilities of Infinera's Digital Optical Networks architecture,
including its quality and reliability, Infinera's belief that the
announcement with DT represents a major win with a Tier One
carrier; Infinera's ability to add at least two new customers;
Infinera's belief that we have not yielded any market share, and
confidence in our ability to continue to add new customers during
the rest of the year; Infinera's belief regarding the reasons for
the moderation in growth anticipated for the third quarter;
Infinera's belief that we continue to win in the marketplace and
the reasons we continue to win, and other statements that can be
identified by forward-looking words such as "anticipated,"
"believed," "could," "estimate," "expect," "intend," "may,"
"should," "will," and "would" or similar words. The risks and
uncertainties that could cause our results to differ materially
from those expressed or implied by such forward-looking statements
include our ability to successfully install our DWDM system in
Deutsche Telekom's network, aggressive business tactics by our
competitors, our dependence on a single product, our ability to
protect our intellectual property, claims by others that we
infringe their intellectual property, our manufacturing process is
very complex, product performance problems we may encounter, our
dependence on sole or limited source suppliers, our ability to
respond to rapid technological changes, our ability to maintain
effective internal controls, the ability of our contract
manufacturers to perform as we expect, general political, economic
and market conditions and events, including war, conflict or acts
of terrorism; and other risks and uncertainties described more
fully in our annual report filed on Form 10K filed with the SEC on
February 19, 2008 and our public announcements, reports to
stockholders and other documents filed with or furnished to the
Securities and Exchange Commission. These statements are based on
information available to us as of the date hereof and we assume no
obligation to update the forward-looking statements included in
this press release, whether as a result of new information, future
events or otherwise.
For further information: Media: Jeff Ferry Infinera Tel (408)
572-5213 jferry@infinera.com Investors: Bob Blair Infinera Tel.
(408) 716-4879 bblair@infinera.com
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