Wednesday, January 28, 2009

Infinera Reports Q4 Financials, New Contract with Greece's OCE

Infinera reported Q4 2008 revenue (GAA) of $99.3 million compared to $120.5 million in the third quarter of 2008 and $76.1 million in the fourth quarter of 2007. GAAP gross margins were 38% in the fourth quarter of 2008 compared to 45% in the third quarter of 2008 and 36% in the fourth quarter of 2007. Infinera noted that its top 10 customers accounted for 72% of total revenue, the lowest concentration in the history of the company. The largest customer for the fourth quarter was an internet content provider at 23%. With the seven new customer additions, total customer count for the company is now at 56.

"In the fourth quarter we saw continued customer win momentum, with seven new customers added in the quarter, including OTE," said Jagdeep Singh, president and chief executive officer of Infinera. "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.

In a separate release, the company announced that OTEGLOBE, the international division of Greek incumbent national carrier OTE, has selected Infinera as its DWDM supplier for its Pan-European Network. Specifically, OTEGLOBE launched its 7,000-km Transbalkan Network (TBN) last year to connect Greece and the Balkans with central Europe and western Europe. The win at OTE represents Infinera's fourth win with Tier 1 incumbent carriers, joining Deutsche Telecom and two other incumbents.