Infinera(INFN) - 2024 Q3 - Quarterly Results

Financial Performance - GAAP revenue for Q3 2024 was $354.4 million, a sequential increase from $342.7 million in Q2 2024, but a decrease from $392.4 million in Q3 2023[1] - GAAP gross margin for the quarter was 39.8%, slightly up from 39.6% in Q2 2024, but down from 40.3% in Q3 2023[1] - Non-GAAP net income for Q3 2024 was $0.3 million, compared to a non-GAAP net loss of $(14.0) million in Q2 2024 and a non-GAAP net income of $19.9 million in Q3 2023[1] - Total revenue for the three months ended September 28, 2024, was $354,398, a decrease of 9.7% compared to $392,369 for the same period in 2023[9] - Product revenue decreased to $276,214, down 12.8% from $316,613 year-over-year, while services revenue increased slightly to $78,184, up 3.5% from $75,756[9] - Gross profit for the quarter was $141,214, resulting in a gross margin of 39.8%, compared to 40.3% in the same quarter last year[10] - The net loss for the quarter was $14,313, compared to a net loss of $9,413 in the same quarter of 2023, resulting in a net loss per share of $0.06[9] - The company reported a loss from operations of $10,998, compared to a profit of $7,655 in the same quarter last year[10] - For the three months ended September 28, 2024, the GAAP net loss was $14,313 million, compared to a net loss of $48,287 million for the previous quarter and $9,413 million for the same period last year[11] - Non-GAAP net income for the three months ended September 28, 2024, was $279 million, a significant improvement from a loss of $13,976 million in the previous quarter and a gain of $19,869 million in the same period last year[13] - The company reported a GAAP net loss per common share of $(0.06) for the three months ended September 28, 2024, compared to $(0.21) in the previous quarter and $(0.04) in the same period last year[15] Cash Flow and Assets - The company generated positive cash flow from operations of $44.5 million during the quarter and ended with cash and equivalents of $115.6 million[1] - For the three months ended September 28, 2024, the company reported a net cash provided by operating activities of $44,563,000, compared to a net cash used of $(59,954,000) for the previous quarter[20] - The company achieved a free cash flow of $20,473,000 for the three months ended September 28, 2024, a significant improvement from $(74,536,000) in the previous quarter[20] - Total assets decreased to $1,505,757,000 as of September 28, 2024, down from $1,679,238,000 at the end of December 2023[21] - Cash and cash equivalents decreased to $115,089,000 as of September 28, 2024, from $172,505,000 at the end of December 2023[21] - The company had a total current liability of $584,426,000 as of September 28, 2024, down from $673,992,000 at the end of December 2023[21] - The company’s accounts receivable, net, was $288,265,000 as of September 28, 2024, compared to $381,981,000 at the end of December 2023[21] - The company’s inventory decreased to $356,119,000 as of September 28, 2024, from $431,163,000 at the end of December 2023[21] - Total cash, cash equivalents, and restricted cash decreased from $126.6 million in September 30, 2023, to $115.6 million in September 28, 2024, representing a decline of approximately 8.0%[24] Operating Expenses - Operating expenses totaled $152,212, an increase of 1.0% from $150,665 in the prior year, with research and development expenses at $73,283, down from $76,846[9] - The total operating expenses for the three months ended September 28, 2024, were $12,305 million, an increase from $8,024 million in the previous quarter and $13,230 million in the same period last year[14] - The company incurred merger-related charges of $6,954 million for the three months ended September 28, 2024, compared to $8,517 million in the previous quarter[11] - The total stock-based compensation expense for the three months ended September 28, 2024, was $14,389 million, up from $9,801 million in the previous quarter and $15,745 million in the same period last year[14] Strategic Initiatives - Infinera signed a preliminary memorandum with the U.S. Department of Commerce for potential funding exceeding $200 million under the CHIPS and Science Act[2] - The pending acquisition by Nokia is expected to close in the first half of 2025, with stockholder and regulatory approvals in progress[2][3] - Infinera will not provide financial guidance during the acquisition process[3] - The company is focused on critical service provider and webscaler design wins across its product offerings, including ICE-X coherent pluggables and ICE7 solutions[2] - The company plans to continue focusing on market expansion and new product development as part of its growth strategy moving forward[16] Shareholder Information - The weighted average shares used in computing net loss per common share increased to 235,832 from 228,077 year-over-year[9] - The weighted average basic common shares outstanding for the three months ended September 28, 2024, were 235,832 million, compared to 234,349 million in the previous quarter and 228,077 million in the same period last year[12] - The company reported a dilutive effect of 26.1 million shares excluded from the calculation of diluted net income (loss) per share for the three months ended September 28, 2024[18]