Infinera(INFN) - 2024 Q4 - Annual Results

Financial Performance - GAAP revenue for Q4 2024 was $414.4 million, a decrease of 8.6% year-over-year from $453.5 million in Q4 2023[3] - GAAP net loss for Q4 2024 was $(26.3) million, or $(0.11) per diluted share, compared to net income of $12.9 million, or $0.06 per diluted share in Q4 2023[5] - Non-GAAP net income for Q4 2024 was $8.2 million, or $0.03 per diluted share, down from $28.6 million, or $0.12 per diluted share in Q4 2023[7] - For FY 2024, GAAP revenue was $1,418.4 million, a decline of 12.1% from $1,614.1 million in FY 2023[8] - GAAP gross margin for Q4 2024 was 38.0%, down from 38.6% in Q4 2023, indicating a decline of 1.6 percentage points[35] - GAAP net loss for the three months ended December 28, 2024, was $(26,343), while non-GAAP net income was $8,198[25] - Net loss for the twelve months ended December 28, 2024, was $150,338 thousand, compared to a net loss of $25,213 thousand for the same period in 2023, indicating a significant increase in losses[33] Bookings and Backlog - The company reported a book-to-bill ratio of approximately 1.1x for FY 2024 and 1.3x for Q4 2024, indicating growth in bookings and backlog[11] - In Q4 2024, bookings grew sequentially by more than 50% and by approximately 20% compared to Q4 2023[12] Strategic Initiatives - Infinera launched ICE-D to target the intra-data center opportunity driven by AI workloads, addressing a projected multi-billion dollar market[11] - The company secured funding under the CHIPS & Science Act, with potential federal incentives exceeding $200 million[11] - Infinera announced a definitive agreement to be acquired by Nokia, with the merger expected to be completed on or about February 28, 2025[11][13] - Due to the pending acquisition, Infinera will not provide financial guidance during this period[14] Operating Expenses and Profitability - Infinera's operating expenses on a GAAP basis were $157,171 for the three months ended December 28, 2024[24] - The company reported a non-GAAP adjusted EBITDA of $35,504 for the three months ended December 28, 2024[25] - The company incurred stock-based compensation expenses of $1,867, accounting for 0.4% of total revenue for the three months ended December 28, 2024[24] - Total stock-based compensation expense for the three months ended December 28, 2024, was $12,200,000, compared to $14,389,000 for the previous quarter[26] - The company reported a restructuring and other related costs of $81 for the three months ended December 28, 2024[24] Cash Flow and Assets - Free cash flow for the three months ended December 28, 2024, was $43,780,000, compared to $20,473,000 in the previous quarter[31] - The company reported a net cash provided by operating activities of $72,045,000 for the three months ended December 28, 2024[31] - Cash provided by operating activities increased to $80,680 thousand in 2024 from $49,510 thousand in 2023, reflecting a growth of approximately 62.9%[33] - Total assets decreased from $1,679,238 thousand in December 30, 2023, to $1,533,758 thousand in December 28, 2024, representing a decline of approximately 8.7%[32] Equity and Capital Expenditures - The company reported a total stockholders' equity of $116,515 thousand as of December 28, 2024, down from $216,591 thousand in December 30, 2023, a decrease of approximately 46.1%[32] - Capital expenditures for the twelve months ended December 28, 2024, were $75,013 thousand, compared to $62,314 thousand in 2023, reflecting an increase of about 20.4%[33] Workforce - The company’s worldwide headcount increased from 3,389 in Q4 2023 to 3,418 in Q4 2024, indicating a slight growth in workforce[35]