Infinera(US:INFN)2024-08-02 20:07Financial 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]