Infinera Corporation Reports Third Quarter 2024 Financial Results

Core Viewpoint - Infinera Corporation reported its financial results for the third quarter of 2024, showing a slight increase in revenue compared to the previous quarter but a decline compared to the same quarter last year. The company is also progressing towards a merger with Nokia, expected to close in the first half of 2025. Financial Performance - GAAP revenue for Q3 2024 was $354.4 million, up from $342.7 million in Q2 2024 but down 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 [2] - GAAP operating margin was (3.1)%, an improvement from (8.7)% in Q2 2024 but a decline from 2.0% in Q3 2023 [2] - GAAP net loss for the quarter was $(14.3) million, or $(0.06) per diluted share, compared to a net loss of $(48.3) million, or $(0.21) per diluted share in Q2 2024, and a net loss of $(9.4) million, or $(0.04) per diluted share in Q3 2023 [3] Non-GAAP Financial Metrics - Non-GAAP gross margin for the quarter was 40.4%, slightly up from 40.3% in Q2 2024 but down from 41.9% in Q3 2023 [4] - Non-GAAP operating margin was 3.5%, compared to (1.3)% in Q2 2024 and 7.7% in Q3 2023 [4] - Non-GAAP net income for the quarter was $0.3 million, or $0.00 per diluted share, compared to a non-GAAP net loss of $(14.0) million, or $(0.06) per diluted share in Q2 2024, and non-GAAP net income of $19.9 million, or $0.08 per diluted share in Q3 2023 [5] - The company generated positive cash flow from operations of $44.5 million and ended the quarter with cash, cash equivalents, and restricted cash of $115.6 million [5] Strategic Developments - Infinera's CEO, David Heard, highlighted continued improvements in financial metrics and significant design wins across various product lines [7] - The company signed a preliminary memorandum of terms with the U.S. Department of Commerce for potential funding exceeding $200 million under the CHIPS and Science Act [7] - The pending acquisition by Nokia is anticipated to accelerate innovation in the industry, with the transaction expected to close in the first half of 2025, pending regulatory approvals [8][9]