(WEB HOST INDUSTRY REVIEW) — Digital optical communications systems provider Infinera Corporation (www.infinera.com) has released the financial results of the third quarter, which ended September 26, 2009. Revenues for the quarter were $83.4 million (based on generally accepted accounting principles), a 21 percent improvement from the $68.9 million reported in the second quarter of 2009, and were also slightly better than its 2008 Q3 earnings of $80.9 million.
“In the third quarter, we continued our positive revenue growth trajectory and our new customer win momentum with the addition of four customers to our roster while diversifying our customer base and reducing our reliance on any single account,” Infinera president and chief executive officer Jagdeep Singh said in a statement. “Our ability to grow our revenue and expand our customer base in the current environment validates that customers are investing in the optical network again and that Infinera is winning its fair share of this spending.
While revenue increased for the fourth quarter in a row, net loss for the quarter was $16.5 million. Excluding restructuring and other related costs and non-cash stock-based compensation expense, net loss was $3.1 million.
Gross margins for the quarter were 33 percent, however, excluding restructuring and other related costs and non-cash stock-based compensation expense, gross margins were 38 percent, compared to 31 percent in the second quarter, and 42 percent on an adjusted GAAP basis in the third quarter of 2008.
Numbers aside, Infinera had many Q3 highlights to report, including the addition of four new customers, brings the company’s total customer count to 66. With the addition of incumbent service providers Telefonica and Teliasonera, Infinera’s Tier-1 carrier customer count is now six of which three — NTT Communications, Deutsche Telecom and Telefonica — are among the top five players in the world.
Also, with the introduction of its ATN metro edge product, the company now addresses all major categories within the $8 billion dollar DWDM space including submarine, ultra-long haul, long-haul, regional, metro core and metro access. To date the company has six wins for its new ATN platform, including the recently announced ATN deployment at Deltacomm.
“We have expanded our total addressable market with the addition of submarine and metro edge products, and believe that our differentiated, PIC-based disruptive technology continues to resonate with customers and prospects alike as the industry’s best, most cost-effective solution to solve their business challenges,” said Singh.
The company also significantly strengthened its technology resources with the addition of an experienced engineering team in its new Ottawa development center, which provides deep expertise in signal processing and complex modulation schemes, important building blocks for the next generation of optical transport products.
