(WEB HOST INDUSTRY REVIEW) — Optical communications systems provider Infinera Corporation (www.infinera.com) finished the fourth quarter with $99.3 million in revenue, compared to $120.5 million in the previous quarter (an 18 percent decline), but this quarter’s results were 30 percent higher than the fourth quarter of 2007, when it earned $76.1.
According to Infinera’s announcement Thursday, the final quarter in 2008, which ended December 27, 2008, was a rough one for investors. The company reported a net loss of seven cents per share in Q4 compared to a net income of $14.9 million, or a $0.15 per share gain in Q3.
“In the fourth quarter we saw continued customer win momentum, with seven new customers added in the quarter, including OTE,” Infinera president and chief executive officer Jagdeep Singh said in a statement. “This resulted in strong top-line performance; however the common equipment associated with these deployments and additional expected new customer shipments in Q1 put downward pressure on our gross margins in the quarter.”
While the short-term earnings may look disappointing, Infinera’s big picture is more optimistic, with 2008 revenues totaling $519.2 million, more than double its 2007 revenue of $245.9 million. Also, Infinera announced Thursday it has been selected by the international division of Greek incumbent national carrier OTE (www.ote.gr) as its DWDM supplier for its Pan-European Network. This customer win represents Infinera’s fourth Tier 1 incumbent carriers, including Deutsche Telecom.
“We believe our ongoing success at winning new customers reflects our increasingly strong position as a strategic supplier of optical transport equipment to a diverse set of customers,” Singh said. “While calendar year 2009 is shaping up as a challenging one for the optical industry, we believe it will also be a year of significant long-term business opportunities for Infinera as carriers grapple with the strategic challenge of scaling their optical networks. With a strong balance sheet and established technology lead, we intend to continue our R&D investments to advance our DWDM leadership position for years to come.”
The company also noted that it has gained a more diversified customer base, with the top 10 customers only accounting for 72 percent of total revenue, the lowest concentration in the history of the company. Among its 56 customers, the largest for the fourth quarter was an Internet content provider.
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