Infinera Corp. (NASDAQ:INFN) reported better-than-expected financial results in the fourth quarter of 2017.
At time of writing INFN was up $1.84 to $8.76. That’s just off the morning high of $8.94. Volume is a record 7.02mm.
The company reported net loss on a GAAP basis of $74.0 million or a loss of 50 cents per share against net income of $36.3 million or 25 cents in the year-ago quarter. Infinera’s adjusted loss of 12 cents was narrower than the Zacks Consensus Estimate of a loss of 13 cents.
Total revenues were $195.8 million, up 8.2% year over year and above the Zacks Consensus Estimate of $189.8 million. Segment-wise, product revenues were $160.54 million, up 6.1% year over year. Services revenues increased 18.9% to nearly $35.27 million. Domestic revenues contributed 53% to the total revenues, while the remaining 47% was generated from international markets.
Total operating expenses were $117.79 million, up from $114.90 million in fourth-quarter 2016.
As of Dec 31, 2017, Infinera’s cash from operations was a negative $21.93 million compared with $38.38 million at the end of 2016.
At the end of December 2017, INFN had $116.35 million of cash and cash equivalents compared with $162.64 million at the end of 2016. The company had no debt against debt of $133.59 million at the end of 2016.
The company continues to face stiff competition from peers like Lantronix, Extreme Networks, NETGEAR NTGR and Brocade Communications Systems in the digital optical networking market.
However, Infinera’s strategic business moves which include launches and alliances look impressive. Different network service providers are merging with the company for the deployment of the Infinera Cloud Xpress, regionally and globally, to reach out to customers with higher scalability and reliability. In November 2017, online streaming service provider, Netflix NFLX , deployed the Infinera Cloud Xpress 2 to expand delivery capacity for streaming videos.
Further, Infinera (NASDAQ:INFN)collaborated with CenturyLink CTL to deliver 2.5 terabits per second of capacity to connect research and education community around the world, leveraging the CenturyLink core network.
Infinera Corporation provides optical transport networking equipment, software, and services worldwide. The company’s product portfolio consists of Infinera DTN-X Family of terabit-class transport network platforms, including the XTC Series, XTS Series, and XT Series; and Infinera DTN platform that supports various Ethernet and optical transport network client interfaces for long-haul, subsea, and regional mesh networks. It also provides Infinera XTM Series carrier-grade packet-optical transport platform that enables high-performance metro networks with service-aware, application-specific capabilities; Infinera XTG Series that is a family of passive optical wavelength-division multiplexing products for metro access applications; and Infinera Cloud Xpress Family multiple platforms that are designed to meet the varying needs of cloud service providers, Internet content providers, Internet exchange service providers, enterprises, and other large-scale data center operators