Financial Performance - Q1 2023 revenue reached $3921 million, a 16% increase year-over-year[54, 57] - Gross margin was 388%, a 260bps increase year-over-year[54] - Operating expenses (OPEX) were $139 million, a 10% increase year-over-year[54] - Operating margin was 35%, a 450bps increase year-over-year[54] - Diluted earnings per share (EPS) was $002, a $009 increase year-over-year[54] Strategic Investments and Outlook - The company is investing in margin-accretive technologies, with OPEX at $142 million, up 11% year-over-year[3] - Q2 2023 revenue outlook is $375 million, a 5% increase year-over-year[22] - Q2 2023 gross margin outlook is 375% +/- 15%[9] - The company aims to enhance shareholder value through growth and profitability, with earnings per share at ($003), up $002 year-over-year[5] Regional Performance - United States revenue was $237 million, a 39% increase year-over-year[57] - Asia Pacific revenue was $412 million, a 5% increase year-over-year[57]

Revenue Performance - Total revenue for 2022 was $1,573.2 million, a 10% increase from $1,425.2 million in 2021, driven by new product ramp-up and growth in the ICP vertical in the U.S. and APAC [282]. - Total revenue for 2022 was $1,573,242, an increase of $148,037 or 10% compared to 2021 [288]. - Product revenue increased by $169.2 million, or 15%, in 2022, driven by the ramp of new products, particularly ICE6 [289]. - Services revenue decreased by $21.2 million, or 7%, in 2022, primarily due to network installation delays [290]. - Domestic revenue increased by $206.5 million, or 31%, while international revenue decreased by $58.4 million, or 8% [291][292]. Gross Margin and Expenses - Gross margin decreased to 34% in 2022 from 35% in 2021, primarily due to higher component costs and logistics expenses, partially offset by improved product mix [283]. - Operating expenses rose to $595.9 million in 2022, a 2% increase from $585.5 million in 2021, mainly due to higher employee-related costs and technology investments [284]. - Gross profit increased by $37.8 million, but gross margin decreased to 34% in 2022 from 35% in 2021 [295]. - Research and development expenses increased by $6.3 million, or 2%, in 2022, reflecting higher employee-related and material costs [301]. - Sales and marketing expenses rose by $7.6 million, or 5%, due to increased employee-related expenses and marketing costs [303]. - General and administrative expenses increased by $3.2 million, or 3%, attributed to higher employee-related expenses and professional fees [304]. Customer Base and Market Position - One customer accounted for approximately 11% of revenue in 2022, while no customer exceeded 10% in 2021, indicating a more diversified customer base [285]. - The company expects to benefit from a diversified customer base and sees opportunities for revenue growth through the adoption of new and existing solutions in 2023 [282]. - The company has grown its solutions portfolio through internal development and acquisitions, positioning itself as a leading provider of vertically integrated optical networking solutions [276]. Cash Flow and Financial Position - Net cash used by operating activities was $37.6 million for 2022, compared to net cash provided of $28.1 million in 2021 [317]. - Net loss for 2022 was $76.0 million, which included non-cash charges of $152.1 million [318]. - Net cash used in investing activities was $46.1 million for 2022, primarily for the purchase of property and equipment [320]. - Net cash provided by financing activities was $82.3 million for 2022, including net proceeds of $92.9 million from the issuance of 2028 Notes [321]. - As of December 31, 2022, the company had $189.2 million of cash, cash equivalents, and restricted cash, including $65.9 million held by foreign subsidiaries [331]. Obligations and Commitments - Total contractual obligations increased by $263,529, reaching $1,612,344, a 20% rise compared to the previous year [334]. - Purchase obligations rose by $153,237, totaling $744,777, reflecting a 26% increase due to higher lead-time commitments and investments for new products [334]. - The company has a commitment of $457,572 related to 2028 Notes, marking a 100% increase as it was not present in the previous year [334]. Foreign Currency and Risk Management - The company operates in international markets, exposing it to foreign currency risks, particularly with the euro, Indian rupee, and British pound [362]. - The company may enter into foreign currency exchange forward contracts to mitigate currency exchange rate fluctuations, but these do not cover all transactions [363]. Revenue Recognition and Inventory - The company recognizes revenue when control of goods or services is transferred to customers, following a five-step approach to revenue recognition [337]. - Inventory is valued at standard cost, with adjustments made to reflect the lower of actual cost or net realizable value, impacting financial statements [357]. Debt and Interest Rates - The company issued 2024 Notes, 2027 Notes, and 2028 Notes with fixed annual interest rates of 2.125%, 2.50%, and 3.75%, respectively [365]. - The fair value of the 2024, 2027, and 2028 Notes as of December 31, 2022, was $101.0 million, $221.4 million, and $462.9 million, respectively [365]. - Interest expense decreased by $23.1 million in 2022 compared to 2021, primarily due to the adoption of ASU 2020-06, which eliminated debt discounts for convertible senior notes [309]. - Gain on extinguishment of debt was $15.5 million in 2022 due to the partial repurchase of 2024 Notes at a price below par value [311].

Infinera Corporation (NASDAQ:INFN) Q4 2022 Earnings Conference Call February 23, 2023 5:00 PM ET Company Participants Amitabh Passi - Head of Investor Relations David Heard - Chief Executive Officer Nancy Erba - Chief Financial Officer Conference Call Participants Alex Henderson - Needham Andrew King - Rosenblatt Securities George Notter - Jefferies LLC Simon Leopold - Raymond James Joe Cardoso - JPMorgan Fahad Najam - Loop Capital Meta Marshall - Morgan Stanley Dave Kang - B. Riley Jim Suva - Citi Operator ...

Financial Data and Key Metrics Changes - In Q3 2022, the company reported revenue of $390 million, representing a 9% year-over-year increase, with product revenue growth of 17% [28][12] - Non-GAAP operating margin was 5.2%, at the high end of the outlook range, and operating profit more than doubled year-over-year [31][12] - Gross margin was 37.8%, up 170 basis points sequentially, despite absorbing approximately 400 basis points of supply chain-related headwinds [30][12] Business Line Data and Key Metrics Changes - The ICE6 product line contributed over 30% of product revenue in Q3, with expectations to ramp to 20% to 25% of total product revenue for the full year [16][17] - The metro platforms, particularly the flagship GX 30 product line, saw double-digit percentage revenue growth year-over-year [17] - Service revenue remained stable sequentially but was down year-over-year due to delayed customer deployments [28] Market Data and Key Metrics Changes - 57% of revenue was derived from domestic customers, higher than normal due to strong demand from ICPs and other service providers in the US [29] - The company experienced a 9% quarter-over-quarter decline in Europe, attributed to seasonal factors and a concentration of revenue in the US [44] Company Strategy and Development Direction - The company is focused on its 8x4x1 strategy, which is yielding market share gains and driving product strategy [25] - Investments are prioritized in sales and marketing and strategic R&D programs to capitalize on global opportunities [21] - The company aims to leverage government funding from the CHIPS and Science Act to enhance R&D leadership and expand into new markets [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment and the ramp of ICE6, despite acknowledging ongoing supply chain challenges [35][23] - The outlook for Q4 includes revenue expectations in the range of $435 million, representing approximately 8% growth year-over-year [36] - Management anticipates continued supply chain challenges but expects some moderation in the first half of 2023 [35] Other Important Information - The company generated free cash flow of $9 million in Q3 and ended the quarter with $210 million in cash and restricted cash [32][12] - The company plans to hold an Investor Day on March 7, 2023, to provide further insights into its strategy and product portfolio [26] Q&A Session Summary Question: Issues in Europe - Management noted that Q3 is typically a down quarter in Europe, with strong demand and good prospects expected moving forward [44] Question: RPO and Immediate Shipments - RPO was reported at $909 million, down $45 million from the previous quarter, but bookings in the first week of Q4 offset this decline [51] Question: Supply Chain Challenges - Management acknowledged that supply chain costs increased more than expected, impacting gross margins, but noted that some components are beginning to free up [106][92] Question: Share Count Changes - The decrease in share count for Q4 was attributed to the new 28 converts, which are intended to be paid back in cash and not included in the fully diluted count [77] Question: Competitive Landscape - Management confirmed that the company is gaining market share, particularly in the 800-gig technology space, while competitors are facing challenges [82][98]

Oj Infinera THIRD QUARTER 2022 FINANCIAL RESULTS November 2, 2022 Safe Harbor Forward-Looking Statements This presentation contains forward-looking statements, including those related to Infinera's expectations regarding its business model and strategy, market opportunities and trends, competition, and customers; capacity growth; the shift to open architecture; market adoption of coherent optical engines; expectations regarding industry-wide supply chain challenges, the macroeconomic environment and ongoing ...

Financial Data and Key Metrics Changes - In Q2 2022, total revenue was $358 million, representing a year-over-year growth of 5.5% with product revenue increasing by 11% and services revenue declining by 11% due to supply chain delays [17][7] - Non-GAAP operating margin was at the upper end of the outlook range, while non-GAAP gross margin was near the midpoint of the range at 36.1%, impacted by approximately 350 basis points from elevated supply chain costs [17][14] - The company reported a loss of $0.05 per share for the quarter, with operating profit at $1.5 million, equating to an operating margin of 0.4% [17][18] Business Line Data and Key Metrics Changes - The systems business saw strong bookings, particularly with the new ICE6 customers, contributing to a record backlog that grew approximately 80% year-over-year [7][9] - Metro solutions and open line systems also performed well, with both bookings and revenue up in the double-digit percentage range year-over-year [10] - The subsystems business group introduced 400 gig XR pluggables, which are expected to impact financial performance starting in the first half of 2023 [11] Market Data and Key Metrics Changes - Revenue growth was observed across all regions year-over-year, with 51% of revenue derived from domestic customers [17] - The company reported a book-to-bill ratio above one, indicating strong demand and bookings growth in the double-digit percentage range year-over-year [16][7] Company Strategy and Development Direction - The company aims to ramp ICE6 to 20% to 25% of product revenue in 2022, leveraging vertical integration to enhance competitiveness and margin expansion [9][14] - The strategy includes mitigating supply chain costs through adjustments in commercial terms and cost-reducing initiatives [14][19] - The company is also expanding its line of pluggable products, targeting a new multi-billion dollar addressable market [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain challenges but expressed confidence in demand drivers and the potential for revenue growth in the second half of 2022 [8][15] - The company expects Q3 revenue to range from $360 million to $400 million, with product revenue growth projected at 8% to 12% year-over-year [20][21] - Management anticipates exiting 2022 with gross margins at or above 40% and a continued focus on driving revenue growth and margin expansion [22][23] Other Important Information - The company ended the quarter with $155 million in cash and restricted cash, with plans to improve cash collections in Q3 and Q4 [18][19] - The total supply chain impact on gross margins for 2022 is estimated to exceed 300 basis points, with expectations for easing in 2023 [14][45] Q&A Session Summary Question: What is the expected trend for the $1 billion backlog moving into 2023? - Management indicated that backlog continues to grow, supporting an 8% to 12% growth rate, with strong demand expected to persist [27] Question: What is the product backlog compared to total backlog? - The company clarified that the $1 billion figure refers to remaining performance obligations, with product backlog growing over 100% year-over-year [30] Question: What is the status of the 19-country subsea deployment project? - Management confirmed that the project was pushed to the back half of the year, with confidence in completion between Q3 and Q4 [32] Question: How is foreign exchange affecting the business? - Minimal impact from foreign exchange was reported, with expectations for no significant effect in the second half of the year [39][40] Question: What are the expectations for gross margin improvements? - Management expects gross margins to improve sequentially, with continued absorption of supply chain impacts [21][45] Question: Will there be any pricing increases? - Management stated that pricing actions are handled with customers, but did not disclose specific competitive pricing strategies [52]

Financial Data and Key Metrics Changes - Q1 revenue was $339 million, growing 2% year-over-year, with product revenue up over 5% and services revenue down 8% [36][38] - Q1 gross margin was 36.2%, below the midpoint of the outlook range, primarily due to supply chain impacts [38] - Operating loss for the quarter was $3.5 million, equating to an operating margin of negative 1% [39] - Q1 EPS was a loss of $0.07 per share [40] - Cash and restricted cash at the end of the quarter was $204 million, with $16 million generated from operations [41] Business Line Data and Key Metrics Changes - ICE6 revenue grew to the high teens as a percentage of product revenue in Q1, up from the low-teens in the previous quarter [16] - GX metro product bookings were up almost 200% year-over-year, driven by new wins and growth in existing accounts [17] - Services revenue decline was primarily due to project shifts caused by customer site readiness and resource constraints [37] Market Data and Key Metrics Changes - 50% of revenue came from domestic customers, up from 48% in the previous year [38] - No single customer contributed more than 10% of total revenue in the quarter [38] Company Strategy and Development Direction - The company is focused on ramping ICE6 to 20% to 25% of product revenue in 2022 and integrating pluggables into their platforms [16][20] - The strategy includes qualifying additional sources of supply and increasing production capacity of ICE6 [28][29] - Membership in the Open XR forum is growing, with new service providers joining, indicating a healthy pipeline for future growth [22] Management's Comments on Operating Environment and Future Outlook - Management expects continued healthy demand in Q2 despite supply chain challenges, projecting Q2 revenue in the range of $350 million, plus or minus $20 million [42] - The outlook for 2022 is now expected to be at the low end of the 8% to 12% growth range, with gross margin expanding by 100 to 150 basis points [49] - The second half of 2022 is anticipated to show significant improvement in financial performance, driven by product growth and backlog conversion [50] Other Important Information - The company faced a $5 million impact from suspending operations in Russia and a $20 million impact from supply chain-related developments [12][43] - The company is experiencing a shift in project timelines, with some revenue recognition expected to occur in the second half of the year [68] Q&A Session Summary Question: Clarification on Q2 guidance and supply chain issues - Management indicated that the majority of the $25 million impact in Q2 is due to customer project acceptance issues rather than their own supply chain problems [53][56] Question: Impact of ICE6 products and supply chain control - Management stated that they have more control over ICE6 production, but some components are still dependent on external suppliers [59] Question: Confidence in the third quarter's performance - Confidence in the back half of the year is based on the visibility of revenue conversion from existing contracts and increased production capacity [61] Question: Details on the largest GX Metro deal - The deal is characterized as a nationwide metro footprint with significant integration plans, contributing to future growth [95] Question: Vertical integration and gross margin expectations - Vertical integration efforts are ongoing, with a focus on increasing the percentage of sales from integrated products [109]

Oj Infinera FIRST QUARTER 2022 FINANCIAL RESULTS May 3rd, 2022 Safe Harbor Forward-Looking Statements This presentation contains forward-looking statements, including those related to Infinera's expectations regarding its business model and strategy, market opportunities and trends, competition, and customers; expectations regarding industry-wide supply chain challenges and ongoing COVID-19 pandemic impacts; and Infinera's financial outlook for the second quarter of 2022. All statements other than statement ...

Revenue Performance - Total revenue increased to $1,425.2 million in 2021, a 5% increase from $1,355.6 million in 2020, driven by growth in the ICP vertical and service provider customers in EMEA and the United States [271]. - Total revenue for 2021 was $1,425,205, an increase of $69,609 or 5% compared to 2020 [278]. - Product revenue increased by $53.8 million, or 5%, in 2021, driven by growth from ICP customers and service providers in EMEA and the United States [279]. - Services revenue rose by $15.8 million, or 5%, in 2021, primarily due to increased professional services revenue from network installations [281]. - Domestic revenue increased by $33.4 million, or 5%, in 2021, primarily due to strong growth from ICP and other service provider customers [284]. - International revenue also grew by $36.2 million, or 5%, in 2021, with notable increases in EMEA and Other Americas [285]. - Direct revenue increased by $59.7 million, or 6%, in 2021, while indirect revenue rose by $10 million, or 3% [286]. Gross Margin and Operating Expenses - Gross margin improved to 35% in 2021 from 31% in 2020, primarily due to pricing discipline, cost reduction initiatives, and increased revenue from vertically-integrated products [273]. - Gross margin improved to 35% in 2021 from 31% in 2020, benefiting from a better product mix and reduced integration-related expenses [289]. - Operating expenses rose to $585.5 million in 2021, a 4% increase from $564.0 million in 2020, mainly due to higher employee-related costs and investments in new technologies [274]. - Total operating expenses for 2021 were $585.5 million, representing 41% of total revenue, an increase of $21.5 million or 4% from 2020 [296]. Cash Flow and Financial Position - Net cash provided by operating activities was $28.1 million for 2021, a significant improvement from net cash used of $112.3 million in 2020 [322]. - Cash balance at the end of 2021 was $190.6 million, down from $298.0 million at the end of 2020 [321]. - As of December 25, 2021, the company had cash and restricted cash totaling $202.5 million, down from $315.4 million as of December 26, 2020, with unrestricted cash held for working capital purposes [381]. - The company is continuously evaluating alternatives for efficiently funding capital expenditures and ongoing operations [333]. Debt and Financing - The company entered into a Credit Agreement providing for a senior secured asset-based revolving credit facility of up to $150 million, maturing on March 5, 2024 [340]. - As of December 25, 2021, long-term debt included $140.3 million outstanding for the 2027 Notes, with annual payments of $5.0 million due from 2022 through 2026 [336]. - The company issued 2024 Notes and 2027 Notes with fixed annual interest rates of 2.125% and 2.50%, respectively, with fair values of $472.1 million and $293.4 million as of December 25, 2021 [382]. - The fair value of the Notes is subject to interest rate risk, credit risk, and other factors, but does not impact the company's financial position or cash flows due to the fixed nature of the debt obligation [382]. Strategic Initiatives and Future Outlook - The company anticipates benefiting from a diversified customer base and sees opportunities to grow revenue by driving adoption of new and existing solutions in 2022 [272]. - The acquisition of Coriant in 2018 enhanced the company's ability to serve a global customer base and expand its product offerings [257]. - The company plans to continue improving its fixed cost structure and expand vertical integration capabilities across its product portfolio in 2022 [273]. Challenges and Risks - The impact of the COVID-19 pandemic has caused disruptions in supply chain and manufacturing operations, affecting revenue and operational results [266]. - Management believes that domestic net deferred tax assets are not realizable in the foreseeable future, leading to a full valuation allowance [372]. - The company is exposed to foreign currency exchange rate fluctuations, particularly with the euro, affecting operating income due to international operations [378]. - Foreign currency exchange forward contracts are utilized to mitigate some currency exchange rate impacts, but not all transactions are covered [379]. Changes in Expenses - Research and development expenses increased by $34.3 million, or 13%, in 2021 compared to 2020, primarily due to higher employee-related costs and investments in future technologies [297]. - Sales and marketing expenses rose by $9.2 million, or 7%, in 2021 from 2020, driven by higher employee-related costs and commissions [300]. - General and administrative expenses increased by $3.2 million, or 3%, in 2021 compared to 2020, mainly due to higher employee-related costs and litigation settlements [302].

Oj Infinera FOURTH QUARTER 2021 FINANCIAL RESULTS February 16th, 2022 Safe Harbor Forward-Looking Statements This presentation contains forward-looking statements, including those related to Infinera's expectations regarding its business model and strategy, market opportunities and trends, competition, and customers; expectations regarding industry-wide supply chain challenges and ongoing COVID-19 pandemic impacts; and Infinera's financial outlook for the first quarter of 2022. All statements other than sta ...