Core Points - Infinera has signed a non-binding preliminary memorandum with the U.S. Department of Commerce to potentially receive up to $93 million in funding under the CHIPS and Science Act, which could lead to over $200 million in total federal incentives when combined with investment tax credits [1][2][3] - The funding aims to expand and modernize Infinera's semiconductor capabilities in Silicon Valley and its advanced test and packaging capabilities in Pennsylvania, increasing domestic manufacturing capacity by an estimated factor of ten [2][3] - The proposed funding could create up to 1,700 manufacturing and construction jobs, thereby strengthening the supply chain and enhancing economic and national security [2][3] Company Insights - Infinera's CEO, David Heard, emphasized the importance of the bipartisan support for the CHIPS and Science Act in enhancing semiconductor fabrication and packaging in the U.S., which is crucial for national and economic security [3] - The funding will help Infinera secure its supply chain and improve competitiveness against foreign adversaries, particularly in meeting the growing demand for bandwidth driven by AI workloads [3] - Infinera is recognized as a global supplier of innovative optical networking solutions and advanced optical semiconductors, catering to various sectors including carriers, cloud operators, and enterprises [4]

Core Insights - Infinera has been selected by Converge ICT Solutions Inc. as the submarine line terminal equipment vendor for the Bifrost Cable System, utilizing Infinera's GX Series Compact Modular Platform and 1.2T ICE7 optical engine [1][5][6] - Converge will also modernize its nationwide terrestrial fiber network using Infinera's solutions [2] - The Bifrost Cable System, developed by Keppel, Meta, and Telin, spans over 15,000 km and connects North America with the Philippines, Indonesia, and Singapore [3] Company Overview - Converge is the fastest-growing fiber broadband and ICT solutions provider in the Philippines, with over 70,000 kilometers of fiber assets and the largest fiber-to-the-home network, reaching 16 million homes [4][8] - Infinera is a global supplier of optical networking solutions and advanced optical semiconductors, focusing on long-haul, submarine, data center interconnect, and metro transport applications [9] Technological Advancements - Converge will benefit from advanced high-speed optics and 5-nm technology, enabling single wavelengths of up to 1.2T and improved capacity-reach [6] - Infinera's solution includes advanced spectrum sharing capabilities, supporting both ICE7 transponders and next-generation optical line system capabilities [6] Strategic Importance - The partnership allows Converge to effectively scale to meet growing bandwidth demands in the Philippines and the Asia-Pacific region [7] - Infinera's technology is expected to provide Converge with cost-effective, high-performance, and high-capacity services [7]

SAN JOSE, Calif., Oct. 07, 2024 (GLOBE NEWSWIRE) -- Infinera (NASDAQ: INFN) announced today that Poka Lambro Telecommunications (Poka Lambro) has deployed Infinera's XTM Series to upgrade its regional fiber broadband and middle-mile network across rural western Texas with ReConnect Program funding. With Infinera's solution, Poka Lambro can cost-efficiently deliver 400G services across the region to provide reliable middle-mile connectivity to support its own fiber broadband transport needs and those of othe ...

Core Insights - Infinera's greenhouse gas (GHG) emission reduction targets have been validated by the Science Based Targets initiative (SBTi), emphasizing the company's commitment to sustainability in the telecommunications industry [1][2] Group 1: Emission Reduction Targets - Infinera aims to reduce absolute Scope 1 and Scope 2 GHG emissions by 85% by 2030 from a 2020 base year [2] - The company also targets a 25% reduction in absolute Scope 3 GHG emissions within the same timeframe [2] - SBTi has classified Infinera's targets as aligned with keeping global warming to 1.5°C, marking them as the most ambitious designation available through SBTi's evaluation process [2] Group 2: Progress and Achievements - Infinera has already reduced its Scope 1 and 2 GHG emissions by 75% since 2020 [3] - The company utilizes renewable energy in over 80% of its Tier 1 and Tier 2 sites, showcasing significant progress in minimizing its carbon footprint [3] Group 3: Commitment to Sustainability - The validation from SBTi is seen as a milestone in Infinera's sustainability journey, reflecting its dedication to developing energy-efficient optical networking solutions [4] - The CEO of Infinera highlighted the importance of setting effective targets that prioritize long-term sustainability while enabling a connected future [4]

Core Viewpoint - Infinera Corporation is reminding stockholders of the upcoming deadline to elect the form of merger consideration in the pending acquisition by Nokia Corporation, with a deadline set for September 30, 2024 [1][2]. Group 1: Election Process - Stockholders must deliver a properly completed election form to the Exchange Agent by the Election Deadline to make a valid election [2]. - Stockholders holding shares through a bank, broker, or other nominee will receive the election form through those entities and may face an earlier election deadline [3]. - Failure to deliver a completed election form by the Election Deadline will result in shares being converted into the right to receive $6.65 per share in cash [4]. Group 2: Voting and Special Meeting - Stockholders who do not make a valid election can still vote their shares at the special meeting scheduled for October 1, 2024, provided they owned the shares as of August 14, 2024 [5]. Group 3: Revocation of Election - Stockholders can sell or transfer shares after making an election, but must revoke their election prior to the sale or transfer [7]. - Revocation of an election must occur at least five business days before the closing of the Transaction to be effective [7]. Group 4: Contact Information - Stockholders wishing to request an Election Form and accompanying materials can contact Sodali & Co at the provided phone numbers or email [8].

Group 1: Earnings Performance - Infinera reported a quarterly loss of $0.06 per share, better than the Zacks Consensus Estimate of a loss of $0.09, compared to break-even earnings per share a year ago, resulting in an earnings surprise of 33.33% [1] - The company posted revenues of $342.74 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 3.68%, but down from $376.23 million in the same quarter last year [2] - Over the last four quarters, Infinera has exceeded consensus EPS estimates only once [2] Group 2: Stock Performance and Outlook - Infinera shares have increased approximately 26.3% since the beginning of the year, outperforming the S&P 500's gain of 14.2% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $402.92 million, and for the current fiscal year, it is $0.02 on revenues of $1.52 billion [7] Group 3: Industry Context - The Computer - Networking industry, to which Infinera belongs, is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - GAAP revenue for Q2 2024 was $342.7 million, up from $306.9 million in Q1 2024 but down from $376.2 million in Q2 2023[1] - Infinera's total revenue for the first half of 2024 was $649.7 million, down from $768.3 million in the first half of 2023[8] - Infinera's total revenue for the six months ended June 29, 2024, was $246,035,000, compared to $289,690,000 for the same period last year[9] - The company reported a net loss of $(109,682) thousand for the six months ended June 29, 2024, compared to a net loss of $(28,673) thousand for the same period last year[20] - The company experienced a net loss of $(48.3) million in Q2 2024, compared to a net loss of $(61.4) million in Q1 2024[1] Margins and Expenses - GAAP gross margin improved to 39.6% in Q2 2024 from 36.0% in Q1 2024, while GAAP operating margin was (8.7)% compared to (14.0)% in Q1 2024[1] - Infinera Corporation reported a GAAP gross profit of $135,594,000 for the three months ended June 29, 2024, representing a gross margin of 39.6%[9] - Non-GAAP gross profit for the same period was $138,074,000, with a gross margin of 40.3%[9] - Research and development expenses for Q2 2024 were $79.3 million, compared to $151.9 million for the same period in 2023[8] - The company incurred GAAP operating expenses of $165,403,000 for the three months ended June 29, 2024, while non-GAAP operating expenses were adjusted to $142,658,000[9] Cash Flow and Assets - The company ended Q2 2024 with cash, cash equivalents, and restricted cash totaling $115.7 million[1] - Free cash flow for the three months ended June 29, 2024, was $(74,536) thousand, a significant decrease from $15,950 thousand in the previous quarter[18] - Cash and cash equivalents at the end of the period were $115,652 thousand, down from $166,759 thousand a year ago, indicating a decrease of approximately 30.6%[22] - Total current assets decreased to $950,787 thousand as of June 29, 2024, from $1,115,384 thousand as of December 30, 2023, representing a decline of approximately 14.7%[19] - The company’s total assets decreased to $1,518,835 thousand as of June 29, 2024, from $1,679,238 thousand as of December 30, 2023, reflecting a decline of about 9.6%[19] Stock and Shares - The weighted average shares used in computing diluted GAAP net income (loss) per common share was 234,349,000 for the three months ended June 29, 2024[12] - For the three months ended June 29, 2024, the GAAP net loss per share was $(0.21), compared to $(0.27) for the three months ended March 30, 2024[14] - Total stock-based compensation expense for the six months ended June 29, 2024, was $24,332,000, down from $33,648,000 for the same period last year, representing a decrease of approximately 27.7%[1] Merger and Future Outlook - The pending merger with Nokia is expected to close in the first half of 2025, and Infinera will not provide financial guidance during the acquisition period[2] - The merger aims to accelerate innovation and enhance the combined business's portfolio, scale, and geographic reach[2] Non-GAAP Measures - Non-GAAP net loss for Q2 2024 was $(14.0) million, or $(0.06) per diluted share, an improvement from a non-GAAP net loss of $(38.3) million, or $(0.17) per diluted share, in Q1 2024[1] - The company excluded the impact of restructuring and merger-related charges from its non-GAAP results, as these are considered non-recurring in nature[3] - The company believes that adjusted EBITDA is an important financial measure for evaluating its financial performance, as it reflects the ability to generate cash from operations[15]

Financial Performance - Infinera Corporation reported GAAP revenue of $342.7 million for Q2 2024, an increase from $306.9 million in Q1 2024 but a decrease from $376.2 million in Q2 2023 [1] - GAAP gross margin improved to 39.6% in Q2 2024 from 36.0% in Q1 2024, while it was 38.0% in Q2 2023 [2] - The company recorded a GAAP net loss of $(48.3) million, or $(0.21) per diluted share, which is an improvement from a net loss of $(61.4) million, or $(0.27) per diluted share in Q1 2024, but worse than the net loss of $(20.3) million, or $(0.09) per diluted share in Q2 2023 [3] Non-GAAP Financial Metrics - Non-GAAP gross margin for Q2 2024 was 40.3%, up from 36.6% in Q1 2024 and 39.3% in Q2 2023 [4] - Non-GAAP net loss was $(14.0) million, or $(0.06) per diluted share, compared to a non-GAAP net loss of $(38.3) million, or $(0.17) per diluted share in Q1 2024, and $(0.7) million, or $(0.00) per diluted share in Q2 2023 [5] Operational Highlights - The company ended Q2 2024 with cash, cash equivalents, and restricted cash totaling $115.7 million [5] - CEO David Heard expressed satisfaction with the results, noting that revenue, gross margin, and operating margin were all above the midpoint of the outlook range [7] - Infinera achieved a book-to-bill ratio above 1, indicating positive design-win momentum across its optical networking product portfolio [7] Merger with Nokia - Infinera has entered into a merger agreement with Nokia, expected to close in the first half of 2025, which aims to enhance innovation and operational scale [8] - The company will not provide financial guidance during the pendency of the acquisition [9]

Core Insights - Infinera's GX Series ICE6 800G coherent solution has been selected by GARR to double the capacity of its new optical infrastructure, GARR-T, which will now extend to Sardinia [1][2] Group 1: Project Overview - The deployment of Infinera's solution will enhance GARR's optical backbone, facilitating high-speed collaboration among research institutions and universities both nationally and internationally [2][3] - The expansion is funded by the EU Recovery Fund project TeRABIT, aimed at creating a high-performance integrated computing and network infrastructure for Italy's scientific community [2] Group 2: Technical Benefits - The new connectivity to Sardinia will provide additional access for institutions involved in high-performance computing, big data, and quantum computing [3] - Infinera's technology allows for the management of a range of spectrum, enabling seamless integration between GARR-T's terrestrial network and the optical infrastructure on Sardinia [4] Group 3: Future Plans - The expansion of GARR-T is expected to be completed by 2025, providing connectivity of up to 400 Gbps across Italy [4]

Core Insights - Infinera is partnering with SECOM to modernize its middle-mile and business Ethernet access network in southern Colorado, enhancing broadband services for underserved communities [1][3][6] - SECOM, a subsidiary of Southeast Colorado Power Association, operates a significant fiber network of approximately 2,000 miles in southeastern Colorado [2] - The modernization project aims to deliver multi-gigabit Ethernet services and improve network flexibility, reliability, and reach, addressing the digital divide in remote areas [3][4] Company Overview - Infinera is recognized as a global supplier of innovative optical networking solutions and advanced optical semiconductors, catering to various sectors including carriers and cloud operators [7] - The XTM Series optical transport solution is designed to support a combination of residential, business, and Carrier Ethernet traffic, suitable for demanding operational environments [4][5] Project Details - The XTM Series will enable SECOM to aggregate larger amounts of traffic from diverse and remote locations, enhancing broadband and Ethernet capabilities [5] - The collaboration with World Wide Technology (WWT) facilitated the network design and deployment for SECOM [5] - The project is expected to contribute to the economic and social development of the region by improving connectivity for homes, schools, and businesses [3][6]