With the rollout of its flagship DTN-X platform now a year old, Infinera (NASDAQ:INFN, news, filings) appears ready to cross the line back into profitability next quarter. Revenues and earnings per share beat estimates, and the third quarter guidance came in above expectations:
| $ in millions | Q2/12 | Q3/12 | Q4/12 | Q1/13 | Q2/13 | Guidance |
|---|---|---|---|---|---|---|
| Revenue | 93.5 | 112.2 | 128.1 | 124.6 | 138.4 | Q3: 135-145, 2013: ~20% growth |
| Non-GAAP Gross Margin % | 37% | 39% | 36% | 36% | 39% | Q3: 43-45%, 2013: 38-40% |
| Operating Expenses | 58.7 | 59.7 | 61.8 | 57.6 | 60.3 | Q3: 55, 2013: 210-215 |
| Non-GAAP EPS | (0.16) | (0.07) | (0.05) | (0.06) | (0.01) | Q3: 0.01-0.07 |
Non-GAAP gross margins rose back to 39% and look to move solidly back above 40% as cost reductions kick in and purchases start shifting from lower margin common components for the initial installation to line module for those superchannels. They added 7 new customers for the DTN-X during the quarter for a total of 34 now.
The only cautionary note was around visibility into revenues at the end of Q3 and into Q4, which is about as far as visibility ever seems to extend for equipment vendors anyway.
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