SUNNYVALE, CA--(Marketwire - June 16, 2008) - Infinera Corporation (
NASDAQ:
INFN) 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.
Contact Information: 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