Infinera Corporation (NASDAQ: INFN) today released financial
results for its third quarter ended September 25, 2021.
GAAP revenue for the quarter was $355.8 million compared to
$338.2 million in the second quarter of 2021 and $340.2 million in
the third quarter of 2020.
GAAP gross margin for the quarter was 33.2% compared to 35.6% in
the second quarter of 2021 and 31.8% in the third quarter of 2020.
GAAP operating margin for the quarter was (8.7)% compared to (6.9)%
in the second quarter of 2021 and (7.9)% in the third quarter of
2020.
GAAP net loss for the quarter was $(53.8) million, or $(0.26)
per share, compared to $(35.6) million, or $(0.17) per share, in
the second quarter of 2021, and $(35.9) million, or $(0.19) per
share, in the third quarter of 2020.
Non-GAAP revenue for the quarter was $356.8 million compared to
$339.2 million in the second quarter of 2021 and $341.2 million in
the third quarter of 2020.
Non-GAAP gross margin for the quarter was 38.0% compared to
37.7% in the second quarter of 2021 and 35.2% in the third quarter
of 2020. Non-GAAP operating margin for the quarter was 2.4%
compared to 0.8% in the second quarter of 2021 and 2.2% in the
third quarter of 2020.
Non-GAAP net loss for the quarter was $(3.0) million, or $(0.01)
per share, compared to net loss of $(6.0) million, or $(0.03) per
share, in the second quarter of 2021, and a net loss of $(0.8)
million, or $(0.01) per share, in the third quarter of 2020.
A further explanation of the use of non-GAAP financial
information and a reconciliation of each of the non-GAAP financial
measures to the most directly comparable GAAP financial measure can
be found at the end of this press release.
Infinera CEO David Heard said, “Q3 was a strong quarter for us,
with revenue coming in ahead of the mid-point of our outlook range
and both non-GAAP gross margin and operating margin exceeding the
high-end of our outlook range. We delivered these results against a
challenging supply chain environment and ended the quarter with
record backlog.”
“The demand drivers fueling our business are robust and we
remain focused on executing our strategy with an enhanced
leadership team. Having refreshed our portfolio, we are ramping our
ICE6 products and achieving greater market traction. Based on this
foundation, I remain confident in our ability to deliver on our
financial goals for 2021 and our longer-term target business
model."
Financial Outlook
Infinera's outlook for the fourth quarter ending
December 25, 2021 is as follows:
- GAAP revenue is expected to be $384
million +/- $15 million. Non-GAAP revenue is expected to be $385
million +/- $15 million.
- GAAP gross margin is expected to be
35.0% +/- 150 bps. Non-GAAP gross margin is expected to be 37.0%
+/- 150 bps.
- GAAP operating expenses are expected to
be $154 million +/- $2 million. Non-GAAP operating
expenses are expected to be $131 million +/- $2
million.
- GAAP operating margin is expected to be
(5.1)% +/- 200 bps. Non-GAAP operating margin is expected to be
3.0% +/- 200 bps.
Third Quarter 2021 Investor Slides Available
Online
Investor slides reviewing Infinera's third quarter of 2021
financial results will be furnished to the Securities and Exchange
Commission (SEC) on a Current Report on Form 8-K and published on
Infinera's Investor Relations website at investors.infinera.com
prior to the third quarter of 2021 earnings conference call.
Analysts and investors are encouraged to review these slides prior
to participating in the conference call webcast. A copy of this
press release can be found at investors.infinera.com.
Conference Call Information
Infinera will host a conference call for analysts and investors
to discuss its results for the third quarter of 2021 and its
outlook for the fourth quarter of 2021 today at 5:00 p.m. Eastern
Time (2:00 p.m. Pacific Time). Interested parties may register for
the conference call at
https://conferencingportals.com/event/PUIteabr. A live webcast of
the conference call will also be accessible from the Events section
of Infinera’s website at investors.infinera.com/. Replay of the
audio webcast will be available at investors.infinera.com/
approximately two hours after the end of the live call.
Contacts:
Media:Anna VueTel. +1 (916) 595-8157avue@infinera.com
Investors:Amitabh Passi, Head of Investor RelationsTel. +1 (669)
295-1489apassi@infinera.com
About Infinera
Infinera is a global supplier of innovative networking solutions
that enable carriers, cloud operators, governments, and enterprises
to scale network bandwidth, accelerate service innovation, and
automate network operations. The Infinera end-to-end packet-optical
portfolio delivers industry-leading economics and performance in
long-haul, submarine, data center interconnect, and metro transport
applications. To learn more about Infinera, visit www.infinera.com,
follow us on Twitter @Infinera, and read Infinera's latest blog
posts at www.infinera.com/blog. Infinera and the Infinera logo are
trademarks or registered trademarks of Infinera Corporation.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements generally relate to future events or Infinera's future
financial or operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "should," "will," and "would" or the negative of these words
or similar terms or expressions that concern Infinera's
expectations, strategy, priorities, plans or intentions. Such
forward-looking statements in this press release include, without
limitation, the demand drivers fueling Infinera's business,
Infinera's ICE6 product ramp and market traction, Infinera's
ability to deliver on its financial goals for 2021 and its
longer-term target business model, and Infinera's financial outlook
for the fourth quarter of 2021. These forward-looking statements
are based on estimates and information available to Infinera as of
the date hereof and are not guarantees of future performance;
actual results could differ materially from those stated or implied
due to risks and uncertainties. The risks and uncertainties that
could cause Infinera’s results to differ materially from those
expressed or implied by such forward-looking statements include
supply chain issues, including delays, shortages and increased
costs, and Infinera's dependency on sole source, limited source or
high-cost suppliers; delays in the development, introduction or
acceptance of new products or updates to existing products;
fluctuations in demand, sales cycles and prices for products and
services, including discounts given in response to competitive
pricing pressures, as well as the timing of purchases by Infinera's
key customers; aggressive business tactics by Infinera’s
competitors; the effect of the COVID-19 pandemic on Infinera’s
business, results of operations, financial condition, stock price
and personnel; the effects of customer and supplier consolidation;
Infinera's ability to identify, attract and retain qualified
personnel; the effectiveness of actions that Infinera is taking to
restructure its business; Infinera’s ability to respond to rapid
technological changes; Infinera’s future capital needs and its
ability to generate the cash flow or otherwise secure the capital
necessary to meet such capital needs; the effect of global and
regional economic conditions on Infinera’s business, including
effects on purchasing decisions by customers; risks and compliance
obligations relating to Infinera's international operations as well
as actions by the U.S. or foreign governments; the impacts of
foreign currency fluctuations; Infinera's ability to service its
debt obligations and pursue its strategic plan; Infinera’s ability
to protect its intellectual property; claims by others that
Infinera infringes on their intellectual property rights; events
that are outside of Infinera's control, such as natural disasters,
terrorist attacks or other catastrophic events that could harm
Infinera's operations; and other risks and uncertainties detailed
in Infinera’s SEC filings from time to time. More information on
potential factors that may impact Infinera’s business are set forth
in Infinera's periodic reports filed with the SEC, including its
Annual Report on Form 10-K for the year ended on December 26, 2020
as filed with the SEC on March 3, 2021, and its Quarterly Report on
Form 10-Q for the quarter ended June 26, 2021 as filed with
the SEC on August 3, 2021, as well as subsequent reports filed
with or furnished to the SEC from time to time. These reports are
available on Infinera’s website at www.infinera.com and the SEC’s
website at www.sec.gov. Infinera assumes no obligation to, and does
not currently intend to, update any such forward-looking
statements.
Use of Non-GAAP Financial Information
In addition to disclosing financial measures prepared in
accordance with U.S. Generally Accepted Accounting Principles
(GAAP), this press release and the accompanying tables contain
certain non-GAAP financial measures that exclude
acquisition-related deferred revenue adjustment, stock-based
compensation expenses, amortization of acquired intangible assets,
acquisition and integration costs, restructuring and other related
costs, inventory related charges, COVID-19 related costs,
amortization of debt discount on Infinera’s convertible senior
notes, litigation charges, foreign exchange (gains) losses, net,
and income tax effects. For a description of these non-GAAP
financial measures and a reconciliation to the most directly
comparable GAAP financial measures, please see the table titled
“GAAP to Non-GAAP Reconciliations” and related footnotes.
Infinera has included forward-looking non-GAAP information in
this press release, including an estimate of certain non-GAAP
financial measures for the fourth quarter of 2021 that exclude
acquisition-related deferred revenue adjustment, stock-based
compensation expense, amortization of acquired intangible assets,
and restructuring and other related costs. Please see the section
titled “GAAP to Non-GAAP Reconciliation of Financial Outlook” below
for specific adjustments.
Infinera believes these adjustments are appropriate to enhance
an overall understanding of its underlying financial performance
and also its prospects for the future and are considered by
management for the purpose of making operational decisions. In
addition, these results are the primary indicators management uses
as a basis for its planning and forecasting of future periods. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for revenue, gross
margin, operating expenses, operating margin, and net income (loss)
prepared in accordance with GAAP. Non-GAAP financial measures are
not based on a comprehensive set of accounting rules or principles
and are subject to limitations.
Infinera CorporationCondensed
Consolidated Statements of Operations(In
thousands, except per share
data)(Unaudited)
|
Three Months Ended |
|
Nine Months Ended |
|
September 25,2021 |
|
September 26,2020 |
|
September 25,2021 |
|
September 26,2020 |
Revenue: |
|
|
|
|
|
|
|
Product |
$ |
270,818 |
|
|
|
$ |
261,906 |
|
|
|
$ |
782,420 |
|
|
|
$ |
778,325 |
|
|
Services |
84,996 |
|
|
|
78,305 |
|
|
|
242,528 |
|
|
|
223,746 |
|
|
Total revenue |
355,814 |
|
|
|
340,211 |
|
|
|
1,024,948 |
|
|
|
1,002,071 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
Cost of product |
187,956 |
|
|
|
185,001 |
|
|
|
525,494 |
|
|
|
573,312 |
|
|
Cost of services |
43,722 |
|
|
|
38,100 |
|
|
|
128,428 |
|
|
|
115,394 |
|
|
Amortization of intangible assets |
4,609 |
|
|
|
7,287 |
|
|
|
13,839 |
|
|
|
24,636 |
|
|
Acquisition and integration costs |
— |
|
|
|
43 |
|
|
|
— |
|
|
|
1,828 |
|
|
Restructuring and other related costs |
1,434 |
|
|
|
1,504 |
|
|
|
1,679 |
|
|
|
4,252 |
|
|
Total cost of revenue |
237,721 |
|
|
|
231,935 |
|
|
|
669,440 |
|
|
|
719,422 |
|
|
Gross profit |
118,093 |
|
|
|
108,276 |
|
|
|
355,508 |
|
|
|
282,649 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
76,648 |
|
|
|
65,636 |
|
|
|
224,111 |
|
|
|
200,906 |
|
|
Sales and marketing |
33,223 |
|
|
|
28,954 |
|
|
|
99,777 |
|
|
|
97,459 |
|
|
General and administrative |
28,301 |
|
|
|
28,183 |
|
|
|
87,004 |
|
|
|
87,904 |
|
|
Amortization of intangible assets |
4,351 |
|
|
|
4,696 |
|
|
|
13,148 |
|
|
|
13,836 |
|
|
Acquisition and integration costs |
— |
|
|
|
1,045 |
|
|
|
614 |
|
|
|
13,611 |
|
|
Restructuring and other related costs |
6,546 |
|
|
|
6,679 |
|
|
|
8,191 |
|
|
|
17,356 |
|
|
Total operating expenses |
149,069 |
|
|
|
135,193 |
|
|
|
432,845 |
|
|
|
431,072 |
|
|
Loss from operations |
(30,976 |
) |
|
|
(26,917 |
) |
|
|
(77,337 |
) |
|
|
(148,423 |
) |
|
Other income (expense), net: |
|
|
|
|
|
|
|
Interest income |
22 |
|
|
|
7 |
|
|
|
89 |
|
|
|
85 |
|
|
Interest expense |
(12,622 |
) |
|
|
(12,645 |
) |
|
|
(36,482 |
) |
|
|
(33,875 |
) |
|
Other gain (loss), net |
(4,763 |
) |
|
|
5,018 |
|
|
|
(14,439 |
) |
|
|
(9,656 |
) |
|
Total other income (expense), net |
(17,363 |
) |
|
|
(7,620 |
) |
|
|
(50,832 |
) |
|
|
(43,446 |
) |
|
Loss before income taxes |
(48,339 |
) |
|
|
(34,537 |
) |
|
|
(128,169 |
) |
|
|
(191,869 |
) |
|
Provision for income taxes |
5,455 |
|
|
|
1,359 |
|
|
|
9,541 |
|
|
|
4,930 |
|
|
Net loss |
$ |
(53,794 |
) |
|
|
$ |
(35,896 |
) |
|
|
$ |
(137,710 |
) |
|
|
$ |
(196,799 |
) |
|
Net loss per common share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.26 |
) |
|
|
$ |
(0.19 |
) |
|
|
$ |
(0.67 |
) |
|
|
$ |
(1.06 |
) |
|
Diluted |
$ |
(0.26 |
) |
|
|
$ |
(0.19 |
) |
|
|
$ |
(0.67 |
) |
|
|
$ |
(1.06 |
) |
|
Weighted average shares used in
computing net loss per common share: |
|
|
|
|
|
|
|
Basic |
209,183 |
|
|
|
189,589 |
|
|
|
206,201 |
|
|
|
185,737 |
|
|
Diluted |
209,183 |
|
|
|
189,589 |
|
|
|
206,201 |
|
|
|
185,737 |
|
|
Infinera CorporationGAAP to Non-GAAP
Reconciliations(In thousands, except
percentages)(Unaudited)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 25, 2021 |
|
|
|
June 26, 2021 |
|
|
|
September 26, 2020 |
|
|
|
September 25, 2021 |
|
|
|
September 26, 2020 |
|
|
Reconciliation of
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
355,814 |
|
|
|
|
|
$ |
338,227 |
|
|
|
|
|
$ |
340,211 |
|
|
|
|
|
$ |
1,024,948 |
|
|
|
|
|
$ |
1,002,071 |
|
|
|
|
Acquisition-related deferred
revenue adjustment(1) |
|
978 |
|
|
|
|
|
978 |
|
|
|
|
|
1,037 |
|
|
|
|
|
2,934 |
|
|
|
|
|
3,197 |
|
|
|
|
Non-GAAP as adjusted |
|
$ |
356,792 |
|
|
|
|
|
$ |
339,205 |
|
|
|
|
|
$ |
341,248 |
|
|
|
|
|
$ |
1,027,882 |
|
|
|
|
|
$ |
1,005,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Gross Profit and Gross Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
118,093 |
|
|
|
33.2 |
|
% |
|
$ |
120,383 |
|
|
|
35.6 |
|
% |
|
$ |
108,276 |
|
|
|
31.8 |
|
% |
|
$ |
355,508 |
|
|
|
34.7 |
|
% |
|
$ |
282,649 |
|
|
|
28.2 |
|
% |
Acquisition-related deferred
revenue adjustment(1) |
|
978 |
|
|
|
|
|
978 |
|
|
|
|
|
1,037 |
|
|
|
|
|
2,934 |
|
|
|
|
|
3,197 |
|
|
|
|
Stock-based compensation
expense(2) |
|
1,968 |
|
|
|
|
|
2,130 |
|
|
|
|
|
1,878 |
|
|
|
|
|
5,894 |
|
|
|
|
|
6,043 |
|
|
|
|
Amortization of acquired
intangible assets(3) |
|
4,609 |
|
|
|
|
|
4,614 |
|
|
|
|
|
7,287 |
|
|
|
|
|
13,839 |
|
|
|
|
|
24,636 |
|
|
|
|
Acquisition and integration
costs(4) |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
43 |
|
|
|
|
|
— |
|
|
|
|
|
1,828 |
|
|
|
|
Restructuring and other
related costs(5) |
|
1,434 |
|
|
|
|
|
(269 |
) |
|
|
|
|
1,504 |
|
|
|
|
|
1,679 |
|
|
|
|
|
4,252 |
|
|
|
|
Inventory related
charges(6) |
|
8,623 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
8,623 |
|
|
|
|
|
— |
|
|
|
|
COVID-19 related costs(7) |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
3,641 |
|
|
|
|
Non-GAAP as adjusted |
|
$ |
135,705 |
|
|
|
38.0 |
|
% |
|
$ |
127,836 |
|
|
|
37.7 |
|
% |
|
$ |
120,025 |
|
|
|
35.2 |
|
% |
|
$ |
388,477 |
|
|
|
37.8 |
|
% |
|
$ |
326,246 |
|
|
|
32.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
149,069 |
|
|
|
|
|
$ |
143,631 |
|
|
|
|
|
$ |
135,193 |
|
|
|
|
|
$ |
432,845 |
|
|
|
|
|
$ |
431,072 |
|
|
|
|
Stock-based compensation
expense(2) |
|
11,664 |
|
|
|
|
|
11,809 |
|
|
|
|
|
10,185 |
|
|
|
|
|
32,651 |
|
|
|
|
|
30,499 |
|
|
|
|
Amortization of acquired
intangible assets(3) |
|
4,351 |
|
|
|
|
|
4,392 |
|
|
|
|
|
4,696 |
|
|
|
|
|
13,148 |
|
|
|
|
|
13,836 |
|
|
|
|
Acquisition and integration
costs(4) |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1,045 |
|
|
|
|
|
614 |
|
|
|
|
|
13,611 |
|
|
|
|
Restructuring and other
related costs(5) |
|
6,546 |
|
|
|
|
|
(674 |
) |
|
|
|
|
6,679 |
|
|
|
|
|
8,191 |
|
|
|
|
|
17,356 |
|
|
|
|
Litigation charges (9) |
|
(594 |
) |
|
|
|
|
2,885 |
|
|
|
|
|
— |
|
|
|
|
|
2,291 |
|
|
|
|
|
— |
|
|
|
|
Non-GAAP as adjusted |
|
$ |
127,102 |
|
|
|
|
|
$ |
125,219 |
|
|
|
|
|
$ |
112,588 |
|
|
|
|
|
$ |
375,950 |
|
|
|
|
|
$ |
355,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income/(Loss) from Operations and Operating Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
(30,976 |
) |
|
|
(8.7 |
) |
% |
|
$ |
(23,248 |
) |
|
|
(6.9 |
) |
% |
|
$ |
(26,917 |
) |
|
|
(7.9 |
) |
% |
|
$ |
(77,337 |
) |
|
|
(7.5 |
) |
% |
|
$ |
(148,423 |
) |
|
|
(14.8 |
) |
% |
Acquisition-related deferred
revenue adjustment(1) |
|
978 |
|
|
|
|
|
978 |
|
|
|
|
|
1,037 |
|
|
|
|
|
2,934 |
|
|
|
|
|
3,197 |
|
|
|
|
Stock-based compensation
expense(2) |
|
13,632 |
|
|
|
|
|
13,939 |
|
|
|
|
|
12,063 |
|
|
|
|
|
38,545 |
|
|
|
|
|
36,542 |
|
|
|
|
Amortization of acquired
intangible assets(3) |
|
8,960 |
|
|
|
|
|
9,006 |
|
|
|
|
|
11,983 |
|
|
|
|
|
26,987 |
|
|
|
|
|
38,472 |
|
|
|
|
Acquisition and integration
costs(4) |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1,088 |
|
|
|
|
|
614 |
|
|
|
|
|
15,439 |
|
|
|
|
Restructuring and other
related costs(5) |
|
7,980 |
|
|
|
|
|
(943 |
) |
|
|
|
|
8,183 |
|
|
|
|
|
9,870 |
|
|
|
|
|
21,608 |
|
|
|
|
Inventory related
charges(6) |
|
8,623 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
8,623 |
|
|
|
|
|
— |
|
|
|
|
COVID-19 related costs(7) |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
3,641 |
|
|
|
|
Litigation charges (9) |
|
(594 |
) |
|
|
|
|
2,885 |
|
|
|
|
|
— |
|
|
|
|
|
2,291 |
|
|
|
|
|
— |
|
|
|
|
Non-GAAP as adjusted |
|
$ |
8,603 |
|
|
|
2.4 |
|
% |
|
$ |
2,617 |
|
|
|
0.8 |
|
% |
|
$ |
7,437 |
|
|
|
2.2 |
|
% |
|
$ |
12,527 |
|
|
|
1.2 |
|
% |
|
$ |
(29,524 |
) |
|
|
(2.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infinera CorporationGAAP to Non-GAAP
Reconciliations(In thousands, except per share
data)(Unaudited)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 25, 2021 |
|
|
|
June 26, 2021 |
|
|
|
September 26, 2020 |
|
|
|
September 25, 2021 |
|
|
|
September 26, 2020 |
|
|
Reconciliation of Net
Income/(Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
(53,794 |
) |
|
|
|
|
$ |
(35,594 |
) |
|
|
|
|
$ |
(35,896 |
) |
|
|
|
|
$ |
(137,710 |
) |
|
|
|
|
$ |
(196,799 |
) |
|
|
|
Acquisition-related deferred
revenue adjustment(1) |
|
978 |
|
|
|
|
|
978 |
|
|
|
|
|
1,037 |
|
|
|
|
|
2,934 |
|
|
|
|
|
3,197 |
|
|
|
|
Stock-based compensation
expense(2) |
|
13,632 |
|
|
|
|
|
13,939 |
|
|
|
|
|
12,063 |
|
|
|
|
|
38,545 |
|
|
|
|
|
36,542 |
|
|
|
|
Amortization of acquired
intangible assets(3) |
|
8,960 |
|
|
|
|
|
9,006 |
|
|
|
|
|
11,983 |
|
|
|
|
|
26,987 |
|
|
|
|
|
38,472 |
|
|
|
|
Acquisition and integration
costs(4) |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
1,088 |
|
|
|
|
|
614 |
|
|
|
|
|
15,439 |
|
|
|
|
Restructuring and other
related costs(5) |
|
7,980 |
|
|
|
|
|
(943 |
) |
|
|
|
|
8,183 |
|
|
|
|
|
9,870 |
|
|
|
|
|
21,608 |
|
|
|
|
Inventory related
charges(6) |
|
8,623 |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
8,623 |
|
|
|
|
|
— |
|
|
|
|
COVID-19 related costs(7) |
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
3,641 |
|
|
|
|
Amortization of debt discount
on Infinera's convertible senior notes(8) |
|
7,442 |
|
|
|
|
|
7,259 |
|
|
|
|
|
6,741 |
|
|
|
|
|
21,784 |
|
|
|
|
|
18,439 |
|
|
|
|
Litigation charges (9) |
|
(594 |
) |
|
|
|
|
2,885 |
|
|
|
|
|
— |
|
|
|
|
|
2,291 |
|
|
|
|
|
— |
|
|
|
|
Foreign exchange (gains)
losses, net(10) |
|
4,213 |
|
|
|
|
|
(3,382 |
) |
|
|
|
|
(5,023 |
) |
|
|
|
|
12,537 |
|
|
|
|
|
9,486 |
|
|
|
|
Income tax effects(11) |
|
(404 |
) |
|
|
|
|
(152 |
) |
|
|
|
|
(991 |
) |
|
|
|
|
(909 |
) |
|
|
|
|
(2,997 |
) |
|
|
|
Non-GAAP as adjusted |
|
$ |
(2,964 |
) |
|
|
|
|
$ |
(6,004 |
) |
|
|
|
|
$ |
(815 |
) |
|
|
|
|
$ |
(14,434 |
) |
|
|
|
|
$ |
(52,972 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss) per
Common Share - Basic and Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
(0.26 |
) |
|
|
|
|
$ |
(0.17 |
) |
|
|
|
|
$ |
(0.19 |
) |
|
|
|
|
$ |
(0.67 |
) |
|
|
|
|
$ |
(1.06 |
) |
|
|
|
Non-GAAP as adjusted |
|
$ |
(0.01 |
) |
|
|
|
|
$ |
(0.03 |
) |
|
|
|
|
$ |
(0.01 |
) |
|
|
|
|
$ |
(0.07 |
) |
|
|
|
|
$ |
(0.29 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Used in Computing Net Income/(Loss) per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
209,183 |
|
|
|
|
|
206,780 |
|
|
|
|
|
189,589 |
|
|
|
|
|
206,201 |
|
|
|
|
|
185,737 |
|
|
|
|
Diluted(12) |
|
209,183 |
|
|
|
|
|
206,780 |
|
|
|
|
|
189,589 |
|
|
|
|
|
206,201 |
|
|
|
|
|
185,737 |
|
|
|
|
(1) |
|
Business combination accounting principles require Infinera to
write down to fair value its maintenance support contracts assumed
in Infinera's acquisition of Coriant, which closed during the
fourth quarter of 2018. The revenue for these support contracts is
deferred and typically recognized over a period of time after the
Coriant acquisition, so Infinera's GAAP revenue for a period of
time after the acquisition will not reflect the full amount of
revenue that would have been reported if the acquired deferred
revenue was not written down to fair value. The non-GAAP adjustment
eliminates the effect of the deferred revenue write-down.
Management believes these adjustments to revenue from support
contracts assumed in the Coriant acquisition are useful to
investors as an additional means to reflect revenue trends in
Infinera's business. |
|
|
|
(2) |
|
Stock-based compensation expense is calculated in accordance
with the fair value recognition provisions of Financial Accounting
Standards Board Accounting Standards Codification Topic 718,
Compensation – Stock Compensation effective January 1, 2006.
The following table summarizes the effects of stock-based
compensation related to employees and non-employees (in
thousands): |
Infinera CorporationGAAP to Non-GAAP
Reconciliations(In
thousands)(Unaudited)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 25, 2021 |
|
June 26, 2021 |
|
September 26, 2020 |
|
September 25, 2021 |
|
September 26, 2020 |
Cost of revenue |
|
$ |
1,968 |
|
|
$ |
2,130 |
|
|
$ |
1,878 |
|
|
$ |
5,894 |
|
|
$ |
6,043 |
|
Total cost of revenue |
|
1,968 |
|
|
2,130 |
|
|
1,878 |
|
|
5,894 |
|
|
6,043 |
|
Research and development |
|
4,714 |
|
|
5,071 |
|
|
4,209 |
|
|
14,082 |
|
|
12,362 |
|
Sales and marketing |
|
3,059 |
|
|
2,811 |
|
|
2,706 |
|
|
9,069 |
|
|
8,136 |
|
General and administration |
|
3,891 |
|
|
3,927 |
|
|
3,270 |
|
|
9,500 |
|
|
10,001 |
|
Total operating expenses |
|
11,664 |
|
|
11,809 |
|
|
10,185 |
|
|
32,651 |
|
|
30,499 |
|
Total stock-based compensation expense |
|
$ |
13,632 |
|
|
$ |
13,939 |
|
|
$ |
12,063 |
|
|
$ |
38,545 |
|
|
$ |
36,542 |
|
(3) |
|
Amortization of acquired intangible assets consists of
developed technology, trade names, customer relationships and
backlog acquired in connection with the Coriant acquisition.
Amortization of acquired intangible assets also consists of
amortization of developed technology, trade names and customer
relationships acquired in connection with Infinera’s acquisition of
Transmode AB, which closed in 2015. GAAP accounting requires that
acquired intangible assets are recorded at fair value and amortized
over their useful lives. As this amortization is non-cash, Infinera
has excluded it from its non-GAAP gross profit, operating expenses
and net income measures. Management believes the amortization of
acquired intangible assets is not indicative of ongoing operating
performance and its exclusion provides a better indication of
Infinera's underlying business performance. |
|
|
|
(4) |
|
Acquisition and integration costs consist of legal, financial,
IT, manufacturing-related costs, employee-related costs and
professional fees incurred in connection with the Coriant
acquisition. These amounts have been adjusted in arriving at
Infinera's non-GAAP results because management believes that these
expenses are non-recurring, not indicative of ongoing operating
performance and their exclusion provides a better indication of
Infinera's underlying business performance. |
|
|
|
(5) |
|
Restructuring and other related costs are primarily associated
with Infinera's plan to restructure certain international research
and development operations, the reduction of operating costs, the
closure of Infinera's Berlin, Germany site, the reduction of
headcount at Infinera's Munich, Germany site and other
international sites, and Coriant's historical restructuring plan
associated with its early retirement plan. In addition, this
includes certain contractual liabilities and accelerated
amortization on operating lease right-of-use assets due to the
cessation of use of certain facilities. Management has excluded the
impact of these charges in arriving at Infinera's non-GAAP results
as they are non-recurring in nature and its exclusion provides a
better indication of Infinera's underlying business
performance. |
|
|
|
(6) |
|
Inventory related charges were incurred as a result of the exit
from certain product lines in connection with restructuring
initiatives. Management has excluded the impact of these charges in
arriving at Infinera's non-GAAP results as they are non-recurring
in nature and its exclusion provides a better indication of
Infinera's underlying business performance. |
|
|
|
(7) |
|
COVID-19 related costs consist of higher replacement costs
associated with certain warranty parts customers were unable to
return for repair due to logistics issues and mobility issues
related to COVID-19 public health mandates and restrictions. In
addition, Infinera needed to source certain key components from an
alternate supplier at substantially higher cost in order to fulfill
delivery commitments in the normal course of business. Management
has excluded these expenses from non-GAAP financial measures
because they were caused by atypical circumstances during the
COVID-19 pandemic, as their exclusion provides a better indication
of Infinera's underlying business performance. |
|
|
|
(8) |
|
Under GAAP, certain convertible debt instruments that may be
settled in cash on conversion are required to be separately
accounted for as liability (debt) and equity (conversion option)
components of the instrument in a manner that reflects the issuer's
non-convertible debt borrowing rate. Accordingly, for GAAP
purposes, Infinera is required to amortize as debt discount an
amount equal to the fair value of the conversion option that was
recorded in equity as interest expense on the $402.5 million in
aggregate principal amount of its 2.125% convertible debt issuance
in September 2018 due September 2024 and $200 million in aggregate
principal amount of 2.50% convertible debt issued in March 9, 2020
due March 2027. Interest expense has been excluded from Infinera's
non-GAAP results because management believes that this non-cash
expense is not indicative of ongoing operating performance and its
exclusion provides a better indication of Infinera's underlying
business performance. |
|
|
|
(9) |
|
Litigation charges are associated with the settlement of
litigation matters. Management has excluded the impact of these
charges in arriving at Infinera's non-GAAP results because they are
non-recurring, and management believes that this expense is not
indicative of ongoing operating performance. |
|
|
|
(10) |
|
Foreign exchange (gains) and losses have been excluded from
Infinera's non-GAAP results because management believes that this
expense is not indicative of ongoing operating performance and its
exclusion provides a better indication of Infinera's underlying
business performance. Exclusion of foreign exchange (gains) and
losses from non-GAAP results commenced in the first quarter of 2021
and prior periods have been adjusted for comparability. |
|
|
|
(11) |
|
The difference between the GAAP and non-GAAP tax provision is
due to the net tax effects of the purchase accounting adjustments,
acquisition-related costs and amortization of acquired intangible
assets. Management believes the exclusion of these tax effects
provides a better indication of Infinera's underlying business
performance. |
|
|
|
(12) |
|
The non-GAAP diluted shares include the potentially dilutive
securities from Infinera's stock-based benefit plans and
convertible senior notes excluded from the computation of dilutive
net loss per share attributable to common stockholders on a GAAP
basis because the effect would have been anti-dilutive. These
potentially dilutive securities are added for the computation of
diluted net income per share on a non-GAAP basis in periods when
Infinera has net income on a non-GAAP basis as its inclusion
provides a better indication of Infinera's underlying business
performance. |
Infinera CorporationGAAP to Non-GAAP
Reconciliations(In
thousands)(Unaudited)
Free Cash Flow
We define free cash flow as net cash provided by (used in)
operating activities in the period minus the purchase of property
and equipment, net made in the period.
Free cash flow is considered a non-GAAP financial measure under
the SEC’s rules. Management believes that free cash flow is an
important financial measure for use in evaluating the Company’s
financial performance, as it measures our ability to generate
additional cash from our business operations. Free cash flow should
be considered in addition to, rather than as a substitute for, net
loss as a measure of our performance or net cash provided by (used
in) operating activities as a measure of our liquidity.
Additionally, our definition of free cash flow is limited and does
not represent residual cash flows available for discretionary
expenditures due to the fact that the measure does not deduct the
payments required for debt service and other obligations.
Therefore, we believe it is important to view free cash flow as
supplemental to our entire statement of cash flows.
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 25, 2021 |
|
June 26, 2021 |
|
September 26, 2020 |
|
September 25, 2021 |
|
September 26, 2020 |
Net cash provided by (used in) operating activities |
|
$ |
(13,175 |
) |
|
|
$ |
21,304 |
|
|
|
$ |
(36,472 |
) |
|
|
$ |
26,759 |
|
|
|
$ |
(164,516 |
) |
|
Purchase of property and
equipment, net |
|
(6,525 |
) |
|
|
(14,068 |
) |
|
|
(8,146 |
) |
|
|
(32,314 |
) |
|
|
(27,148 |
) |
|
Free cash flow |
|
$ |
(19,700 |
) |
|
|
$ |
7,236 |
|
|
|
$ |
(44,618 |
) |
|
|
$ |
(5,555 |
) |
|
|
$ |
(191,664 |
) |
|
Infinera CorporationCondensed
Consolidated Balance Sheets(In thousands, except
par values)(Unaudited)
|
September 25,2021 |
|
December 26,2020 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash |
$ |
203,484 |
|
|
|
$ |
298,014 |
|
|
Short-term restricted cash |
2,840 |
|
|
|
3,293 |
|
|
Accounts receivable, net of allowance for doubtful accounts of
$1,624 in 2021 and $2,912 in 2020 |
273,371 |
|
|
|
319,428 |
|
|
Inventory |
289,613 |
|
|
|
269,307 |
|
|
Prepaid expenses and other current assets |
140,202 |
|
|
|
171,831 |
|
|
Total current assets |
909,510 |
|
|
|
1,061,873 |
|
|
Property, plant and equipment,
net |
155,520 |
|
|
|
153,133 |
|
|
Operating lease right-of-use
assets |
58,669 |
|
|
|
68,851 |
|
|
Intangible assets |
97,206 |
|
|
|
124,882 |
|
|
Goodwill |
264,758 |
|
|
|
273,426 |
|
|
Long-term restricted cash |
10,076 |
|
|
|
14,076 |
|
|
Other long-term assets |
37,720 |
|
|
|
36,256 |
|
|
Total assets |
$ |
1,533,459 |
|
|
|
$ |
1,732,497 |
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
173,303 |
|
|
|
$ |
175,762 |
|
|
Accrued expenses and other current liabilities |
145,394 |
|
|
|
150,550 |
|
|
Accrued compensation and related benefits |
69,536 |
|
|
|
52,976 |
|
|
Short-term debt, net |
483 |
|
|
|
101,983 |
|
|
Accrued warranty |
23,649 |
|
|
|
19,369 |
|
|
Deferred revenue |
107,825 |
|
|
|
133,246 |
|
|
Total current liabilities |
520,190 |
|
|
|
633,886 |
|
|
Long-term debt, net |
468,838 |
|
|
|
445,996 |
|
|
Long-term accrued warranty |
20,935 |
|
|
|
21,339 |
|
|
Long-term deferred revenue |
30,048 |
|
|
|
29,810 |
|
|
Long-term deferred tax
liability |
3,126 |
|
|
|
4,164 |
|
|
Long-term operating lease
liabilities |
65,289 |
|
|
|
76,126 |
|
|
Other long-term liabilities |
84,762 |
|
|
|
94,892 |
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.001 par valueAuthorized shares – 25,000 and no
shares issued and outstanding |
— |
|
|
|
— |
|
|
Common stock, $0.001 par value Authorized shares – 500,000 as
of September 25, 2021 and December 26, 2020
Issued and outstanding shares – 210,177 as of September 25,
2021 and 201,397 as of December 26, 2020 |
210 |
|
|
|
201 |
|
|
Additional paid-in capital |
2,015,442 |
|
|
|
1,965,245 |
|
|
Accumulated other comprehensive loss |
(10,407 |
) |
|
|
(11,898 |
) |
|
Accumulated deficit |
(1,664,974 |
) |
|
|
(1,527,264 |
) |
|
Total stockholders' equity |
340,271 |
|
|
|
426,284 |
|
|
Total liabilities and stockholders’ equity |
$ |
1,533,459 |
|
|
|
$ |
1,732,497 |
|
|
Infinera CorporationCondensed
Consolidated Statements of Cash Flows(In
thousands) (Unaudited)
|
Nine Months Ended |
|
September 25,2021 |
|
September 26, 2020 |
Cash Flows from Operating
Activities: |
|
|
|
Net loss |
$ |
(137,710 |
) |
|
|
$ |
(196,799 |
) |
|
Adjustments to reconcile net loss
to net cash provided by (used in) operating activities: |
|
|
|
Depreciation and amortization |
60,233 |
|
|
|
74,263 |
|
|
Non-cash restructuring charges and related costs |
917 |
|
|
|
2,893 |
|
|
Amortization of debt discount and issuance costs |
24,039 |
|
|
|
20,475 |
|
|
Operating lease expense |
11,792 |
|
|
|
14,123 |
|
|
Stock-based compensation expense |
38,545 |
|
|
|
36,542 |
|
|
Other, net |
3,466 |
|
|
|
3,891 |
|
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
42,498 |
|
|
|
55,252 |
|
|
Inventory |
(24,893 |
) |
|
|
63,201 |
|
|
Prepaid expenses and other assets |
14,973 |
|
|
|
(25,479 |
) |
|
Accounts payable |
(2,076 |
) |
|
|
(117,824 |
) |
|
Accrued liabilities and other expenses |
19,127 |
|
|
|
(73,509 |
) |
|
Deferred revenue |
(24,152 |
) |
|
|
(21,545 |
) |
|
Net cash provided by (used in) operating activities |
26,759 |
|
|
|
(164,516 |
) |
|
Cash Flows from Investing
Activities: |
|
|
|
Purchase of property and equipment, net |
(32,314 |
) |
|
|
(27,148 |
) |
|
Net cash used in investing activities |
(32,314 |
) |
|
|
(27,148 |
) |
|
Cash Flows from Financing
Activities: |
|
|
|
Proceeds from issuance of common stock from at-the-market equity
offering, net of issuance costs of $954 |
— |
|
|
|
31,022 |
|
|
Proceeds from issuance of 2027 Notes |
— |
|
|
|
194,500 |
|
|
Proceeds from revolving Credit Facility |
— |
|
|
|
55,000 |
|
|
Repayment of revolving Credit Facility |
(77,000 |
) |
|
|
(8,000 |
) |
|
Repayment of third party manufacturing funding |
(24,610 |
) |
|
|
(5,346 |
) |
|
Payment of debt issuance cost |
— |
|
|
|
(2,437 |
) |
|
Repayment of mortgage payable |
(233 |
) |
|
|
(233 |
) |
|
Payment of term license obligation |
(5,474 |
) |
|
|
— |
|
|
Principal payments on financing lease obligations |
(1,185 |
) |
|
|
(1,050 |
) |
|
Proceeds from issuance of common stock |
16,497 |
|
|
|
15,352 |
|
|
Tax withholding paid on behalf of employees for net share
settlement |
(4,724 |
) |
|
|
(1,959 |
) |
|
Net cash (used in) provided by financing activities |
(96,729 |
) |
|
|
276,849 |
|
|
Effect of exchange rate changes
on cash and restricted cash |
3,301 |
|
|
|
(2,198 |
) |
|
Net change in cash and restricted
cash |
(98,983 |
) |
|
|
82,987 |
|
|
Cash and restricted cash at
beginning of period |
315,383 |
|
|
|
132,797 |
|
|
Cash and restricted cash at end
of period(1) |
$ |
216,400 |
|
|
|
$ |
215,784 |
|
|
Infinera CorporationCondensed
Consolidated Statements of Cash Flows(In
thousands) (Unaudited)
|
Nine Months Ended |
|
September 25, 2021 |
|
September 26, 2020 |
Supplemental disclosures
of cash flow information: |
|
|
|
Cash paid for income taxes |
$ |
15,901 |
|
|
$ |
3,486 |
|
Cash paid for interest |
$ |
17,171 |
|
|
$ |
14,415 |
|
Supplemental schedule of
non-cash investing and financing activities: |
|
|
|
Unpaid debt issuance cost |
$ |
— |
|
|
$ |
31 |
|
Transfer of inventory to fixed assets |
$ |
4,133 |
|
|
$ |
453 |
|
Unpaid term licenses (included in accounts payable, accrued
liabilities and other long-term liabilities) |
$ |
9,858 |
|
|
$ |
— |
|
(1)
Reconciliation of
cash and restricted cash to the condensed consolidated balance
sheets:
|
September 25, 2021 |
|
September 26, 2020 |
|
|
|
|
Cash |
$ |
203,484 |
|
|
$ |
196,546 |
|
Short-term restricted cash |
2,840 |
|
|
4,503 |
|
Long-term restricted cash |
10,076 |
|
|
14,735 |
|
Total cash and restricted cash |
$ |
216,400 |
|
|
$ |
215,784 |
|
Infinera CorporationSupplemental
Financial Information(Unaudited)
|
|
Q4'19 |
|
Q1'20 |
|
Q2'20 |
|
Q3'20 |
|
Q4'20 |
|
Q1'21 |
|
Q2'21 |
|
Q3'21 |
GAAP Revenue ($ Mil) |
|
$ |
384.6 |
|
|
$ |
330.3 |
|
|
$ |
331.6 |
|
|
$ |
340.2 |
|
|
$ |
353.5 |
|
|
$ |
330.9 |
|
|
$ |
338.2 |
|
|
$ |
355.8 |
|
GAAP Gross Margin % |
|
|
29.0 |
% |
|
|
23.3 |
% |
|
|
29.4 |
% |
|
|
31.8 |
% |
|
|
35.7 |
% |
|
|
35.4 |
% |
|
|
35.6 |
% |
|
|
33.2 |
% |
Non-GAAP Gross Margin
%(1) |
|
|
35.2 |
% |
|
|
28.3 |
% |
|
|
33.8 |
% |
|
|
35.2 |
% |
|
|
37.6 |
% |
|
|
37.6 |
% |
|
|
37.7 |
% |
|
|
38.0 |
% |
GAAP Revenue
Composition: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic % |
|
|
52 |
% |
|
|
52 |
% |
|
|
50 |
% |
|
|
49 |
% |
|
|
36 |
% |
|
|
48 |
% |
|
|
52 |
% |
|
|
46 |
% |
International % |
|
|
48 |
% |
|
|
48 |
% |
|
|
50 |
% |
|
|
51 |
% |
|
|
64 |
% |
|
|
52 |
% |
|
|
48 |
% |
|
|
54 |
% |
Customers >10% of
Revenue |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
Cash Related
Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from Operations ($
Mil) |
|
($ |
10.2 |
) |
|
($ |
91.5 |
) |
|
($ |
36.6 |
) |
|
($ |
36.4 |
) |
|
$ |
52.2 |
|
|
$ |
18.6 |
|
|
$ |
21.3 |
|
|
($ |
13.2 |
) |
Capital Expenditures ($
Mil) |
|
$ |
2.7 |
|
|
$ |
8.5 |
|
|
$ |
10.5 |
|
|
$ |
8.1 |
|
|
$ |
11.9 |
|
|
$ |
11.7 |
|
|
$ |
14.1 |
|
|
$ |
6.5 |
|
Depreciation &
Amortization ($ Mil) |
|
$ |
28.6 |
|
|
$ |
25.4 |
|
|
$ |
25.9 |
|
|
$ |
22.9 |
|
|
$ |
25.9 |
|
|
$ |
20.5 |
|
|
$ |
18.8 |
|
|
$ |
20.9 |
|
DSOs |
|
|
83 |
|
|
|
75 |
|
|
|
79 |
|
|
|
78 |
|
|
|
82 |
|
|
|
76 |
|
|
|
76 |
|
|
|
70 |
|
Inventory
Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw Materials ($ Mil) |
|
$ |
47.4 |
|
|
$ |
50.0 |
|
|
$ |
43.4 |
|
|
$ |
39.3 |
|
|
$ |
34.7 |
|
|
$ |
31.8 |
|
|
$ |
33.3 |
|
|
$ |
37.4 |
|
Work in Process ($ Mil) |
|
$ |
48.8 |
|
|
$ |
52.0 |
|
|
$ |
50.9 |
|
|
$ |
51.6 |
|
|
$ |
55.8 |
|
|
$ |
55.5 |
|
|
$ |
55.1 |
|
|
$ |
54.4 |
|
Finished Goods ($ Mil) |
|
$ |
244.1 |
|
|
$ |
217.7 |
|
|
$ |
193.9 |
|
|
$ |
185.0 |
|
|
$ |
178.8 |
|
|
$ |
175.5 |
|
|
$ |
185.6 |
|
|
$ |
197.8 |
|
Total Inventory ($
Mil) |
|
$ |
340.3 |
|
|
$ |
319.7 |
|
|
$ |
288.2 |
|
|
$ |
275.9 |
|
|
$ |
269.3 |
|
|
$ |
262.8 |
|
|
$ |
274.0 |
|
|
$ |
289.6 |
|
Inventory Turns(2) |
|
|
2.9 |
|
|
|
3.0 |
|
|
|
3.1 |
|
|
|
3.2 |
|
|
|
3.3 |
|
|
|
3.1 |
|
|
|
3.1 |
|
|
|
3.1 |
|
Worldwide
Headcount |
|
|
3,261 |
|
|
|
3,302 |
|
|
|
3,209 |
|
|
|
3,074 |
|
|
|
3,050 |
|
|
|
3,041 |
|
|
|
3,108 |
|
|
|
3,205 |
|
Weighted Average
Shares Outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
180,864 |
|
|
|
182,024 |
|
|
|
185,596 |
|
|
|
189,589 |
|
|
|
195,655 |
|
|
|
202,638 |
|
|
|
206,780 |
|
|
|
209,183 |
|
Diluted |
|
|
186,349 |
|
|
|
189,246 |
|
|
|
190,127 |
|
|
|
195,868 |
|
|
|
203,259 |
|
|
|
217,970 |
|
|
|
219,459 |
|
|
|
219,262 |
|
(1) |
|
Non-GAAP adjustments include acquisition-related deferred
revenue and inventory adjustments, stock-based compensation
expenses, amortization of acquired intangible assets, acquisition
and integration costs, restructuring and other related costs,
inventory related charges, and COVID-19 related costs. For a
description of this non-GAAP financial measure, please see the
section titled, “GAAP to Non-GAAP Reconciliations” of this press
release for a reconciliation to the most directly comparable GAAP
financial measures. |
|
|
|
(2) |
|
Infinera calculates non-GAAP inventory turns as annualized
non-GAAP cost of revenue before adjustments for restructuring and
other related costs, inventory related charges, COVID-19 related
costs, non-cash stock-based compensation expense, and certain
purchase accounting adjustments, divided by the average inventory
for the quarter. |
Infinera CorporationGAAP to Non-GAAP
Reconciliation of Financial Outlook(In millions,
except percentages)(Unaudited)
The following amounts represent the midpoint of the expected
range:
|
|
Q4'21 |
|
|
Outlook |
Reconciliation of
Revenue: |
|
|
GAAP |
|
$ |
384.0 |
|
|
Acquisition-related deferred
revenue adjustment |
|
1.0 |
|
|
Non-GAAP |
|
$ |
385.0 |
|
|
|
|
|
Reconciliation of Gross
Margin: |
|
|
GAAP |
|
35.0 |
|
% |
Acquisition-related deferred
revenue adjustment |
|
0.3 |
|
% |
Stock-based compensation
expense |
|
0.4 |
|
% |
Amortization of acquired
intangible assets |
|
1.2 |
|
% |
Restructuring and other related
costs |
|
0.1 |
|
% |
Non-GAAP |
|
37.0 |
|
% |
|
|
|
Reconciliation of
Operating Expenses: |
|
|
GAAP |
|
$ |
154.0 |
|
Stock-based compensation
expense |
|
(11.5 |
) |
|
Amortization of acquired
intangible assets |
|
(4.4 |
) |
|
Restructuring and other related
costs |
|
(7.1 |
) |
|
Non-GAAP |
|
$ |
131.0 |
|
|
|
|
Reconciliation of
Operating Margin: |
|
|
GAAP |
|
(5.1) |
|
% |
Acquisition-related deferred
revenue adjustment |
|
0.3 |
|
% |
Stock-based compensation
expense |
|
3.5 |
|
% |
Amortization of acquired
intangible assets |
|
2.3 |
|
% |
Restructuring and other related
costs |
|
2.0 |
|
% |
Non-GAAP |
|
3.0 |
|
% |
|
|
|
Infinera (NASDAQ:INFN)
Historical Stock Chart
From Apr 2024 to May 2024
Infinera (NASDAQ:INFN)
Historical Stock Chart
From May 2023 to May 2024