Sunday, June 15, 2008

Infinera Updates Financial Guidance, Sees Lower North American

Infinera 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 anticipated quarter over quarter revenue decline in the third quarter was attributed to indications that the company's 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.

The updated guidance was issued in conjunction with its separate announcement that Deutsche Telekom (DT) has selected the Infinera DWDM platform for its pan-European network. 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.

For its third quarter, Infinera 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.

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