• Infinera Corporation Reports Second Quarter 2019 Financial Results

    Источник: Nasdaq GlobeNewswire / 07 авг 2019 21:00:10   America/New_York

    SUNNYVALE, Calif., Aug. 07, 2019 (GLOBE NEWSWIRE) -- Infinera Corporation, provider of Intelligent Transport Networks, today released financial results for its second quarter ended June 29, 2019.

    GAAP revenue for the quarter was $296.3 million compared to $292.7 million in the first quarter of 2019 and $208.2 million in the second quarter of 2018.

    GAAP gross margin for the quarter was 20.7% compared to 22.7% in the first quarter of 2019 and 40.5% in the second quarter of 2018. GAAP operating margin for the quarter was (36.6)% compared to (38.2)% in the first quarter of 2019 and (10.4)% in the second quarter of 2018.

    GAAP net loss for the quarter was $113.7 million, or $(0.64) per share, compared to a net loss of $121.6 million, or $(0.69) per share, in the first quarter of 2019, and net loss of $21.9 million, or  $(0.14) per share, in the second quarter of 2018.

    Non-GAAP revenue for the quarter was $306.9 million compared to $295.6 million in the first quarter of 2019 and $208.2 million in the second quarter of 2018.

    Non-GAAP gross margin for the quarter was 30.7% compared to 35.3% in the first quarter of 2019 and 43.9% in the second quarter of 2018. Non-GAAP operating margin for the quarter was (12.3)% compared to (11.9)% in the first quarter of 2019 and (0.7)% in the second quarter of 2018.

    Non-GAAP net loss for the quarter was $42.0 million, or $(0.24) per share, compared to a net loss of $41.2 million, or $(0.23) per share, in the first quarter of 2019, and net loss of $1.3 million, or $(0.01) per share, in the second quarter of 2018.

    A further explanation of the use of non-GAAP financial information and a reconciliation of the non-GAAP financial measures to the GAAP equivalents can be found at the end of this release.

    “During the quarter, we significantly enhanced the longer-term position of the New Infinera with strong customer traction led by bookings from several new Tier-1 wins and the initial ramp of a new internet content provider,” said Tom Fallon, Infinera CEO. “Continued progress on our integration program, which we expect to largely complete in the fourth quarter of 2019, is enabling synergies to track ahead of prior commitments. Based on this foundation, we expect to return to non-GAAP profitability and positive cash flow in the fourth quarter of 2019."

    Financial Outlook

    Infinera's outlook for the quarter ending September 28, 2019 is as follows:

    • GAAP revenue is expected to be $328 million +/- $10 million. Non-GAAP revenue is expected to be $330 million +/- $10 million.
    • GAAP gross margin is expected to be 27% +/- 200 bps. Non-GAAP gross margin is expected to be 32% +/- 200 bps.
    • GAAP operating expenses are expected to be $150 million +/- $3 million. Non-GAAP operating expenses are expected to be $130 million +/- $3 million.
    • GAAP operating margin is expected to be approximately (19)%. Non-GAAP operating margin is expected to be approximately (7)%.
    • GAAP EPS is expected to be $(0.40) +/- $0.02. Non-GAAP EPS is expected to be $(0.17) +/- $0.02.

    Second Quarter 2019 Financial Commentary Available Online

    A CFO Commentary reviewing Infinera's second quarter of 2019 financial results will be furnished to the SEC on Form 8-K and published on Infinera's Investor Relations website at investors.infinera.com. Analysts and investors are encouraged to review this commentary prior to participating in the conference call webcast.

    Conference Call Information

    Infinera will host a conference call for analysts and investors to discuss its results for the second quarter of 2019 and its outlook for the third quarter of 2019 today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Interested parties may join the conference call by dialing 1-866-373-6878 (toll free) or 1-412-317-5101 (international). A live webcast of the conference call will also be accessible from the Events section of Infinera’s website at investors.infinera.com. Replay of the audio webcast will be available at investors.infinera.com approximately two hours after the end of the live call.

     

    About Infinera

    Infinera provides Intelligent Transport Networks, enabling carriers, cloud operators, governments and enterprises to scale network bandwidth, accelerate service innovation and automate optical network operations. Infinera’s end-to-end packet-optical portfolio is designed for long-haul, subsea, data center interconnect and metro applications. To learn more about Infinera visit www.infinera.com, follow us on Twitter @Infinera and read our latest blog posts at www.infinera.com/blog.

    Forward-Looking Statements

    This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. Such forward-looking statements include, without limitation, Infinera’s expectations regarding integration; the level of synergies to be achieved; its ability to return to non-GAAP profitability and positive cash flow in the fourth quarter of 2019; and its financial outlook for the third quarter of 2019.

    Forward-looking statements can also be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and "would” or similar words. These statements are based on information available to Infinera as of the date hereof and actual results could differ materially from those stated or implied due to risks and uncertainties. The risks and uncertainties that could cause Infinera’s results to differ materially from those expressed or implied by such forward-looking statements include, the combined company's ability to promptly and effectively integrate the businesses; Infinera's ability to realize synergies in a timely manner; market acceptance of the combined company's end-to-end portfolio; Infinera’s future capital needs and its ability to generate the cash flow or otherwise secure the capital necessary to make anticipated capital expenditures; Infinera's ability to service its debt obligations and pursue its strategic plan; the diversion of management time on issues related to the integration; delays in the development and introduction of new products or updates to existing products and market acceptance of these products; fluctuations in demand, sales cycles and prices for products and services, including discounts given in response to competitive pricing pressures, as well as the timing of purchases by Infinera's key customers; the effect that changes in product pricing or mix, and/or increases in component costs could have on Infinera’s gross margin; the effects of customer consolidation; Infinera’s ability to respond to rapid technological changes; aggressive business tactics by Infinera’s competitors; Infinera's reliance on single and limited source suppliers; Infinera’s ability to protect Infinera’s intellectual property; claims by others that Infinera infringes their intellectual property; Infinera’s ability to successfully integrate its enterprise resource planning system and other management systems; the effect of global macroeconomic conditions, including tariffs, on Infinera's business; war, terrorism, public health issues, natural disasters and other circumstances that could disrupt the supply, delivery or demand of Infinera's products; and other risks and uncertainties detailed in Infinera’s SEC filings from time to time. More information on potential factors that may impact Infinera’s business are set forth in its Quarterly Report on Form 10-Q for the quarter ended on March 30, 2019 as filed with the SEC on May 9, 2019, as well as subsequent reports filed with or furnished to the SEC from time to time. These reports are available on Infinera’s website at www.infinera.com and the SEC’s website at www.sec.gov. Infinera assumes no obligation to, and does not currently intend to, update any such forward-looking statements.

    Use of Non-GAAP Financial Information

    In addition to disclosing financial measures prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain certain non-GAAP measures that exclude acquisition-related deferred revenue and inventory adjustments, other customer related charges, non-cash stock-based compensation expenses, amortization of acquired intangible assets, acquisition and integration costs, restructuring and related costs (credits), litigation charges, amortization of debt discount on Infinera’s convertible senior notes, impairment charge of non-marketable equity investments, gain on non-marketable equity investments, and certain purchase accounting adjustments related to Infinera's acquisitions, along with related tax effects. For a description of these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measures, please see the section titled, “GAAP to Non-GAAP Reconciliations.”

    Infinera has included forward-looking non-GAAP information in this press release, including an estimate of certain non-GAAP financial measures for the third quarter of 2019 that exclude non-cash stock-based compensation expenses, acquisition related deferred revenue adjustments, acquisition and integration costs related to Infinera's acquisition of Coriant, restructuring and related expenses, amortization of acquired intangible assets and related tax effects. Please see the section titled, “GAAP to Non-GAAP Reconciliations of Financial Outlook” below on specific adjustments.

    Infinera believes these adjustments are appropriate to enhance an overall understanding of its underlying financial performance and also its prospects for the future and are considered by management for the purpose of making operational decisions. In addition, these results are the primary indicators management uses as a basis for its planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for gross margin, operating margin, net loss, or basic and diluted net loss per share prepared in accordance with GAAP. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and are subject to limitations.

    A copy of this press release can be found on the Investor Relations page of Infinera’s website at www.infinera.com.

    Infinera and the Infinera logo are trademarks or registered trademarks of Infinera Corporation. All other trademarks used or mentioned herein belong to their respective owners.

    Infinera Corporation
    Condensed Consolidated Statements of Operations
    (In thousands, except per share data)
    (Unaudited) 

      Three Months Ended Six Months Ended
      June 29,
     2019
     June 30,
     2018
     June 29,
     2019
     June 30,
     2018
    Revenue:        
    Product $226,866  $175,288  $449,873  $346,917 
    Services 69,384  32,939  139,084  63,991 
    Total revenue 296,250  208,227  588,957  410,908 
    Cost of revenue:            
    Cost of product 177,501  105,914  335,318  208,238 
    Cost of services 36,831  13,039  73,507  25,870 
    Amortization of intangible assets 8,098  4,943  16,350  10,284 
    Acquisition and integration costs 10,700    12,764   
    Restructuring and related 1,864  26  23,330  43 
    Total cost of revenue 234,994  123,922  461,269  244,435 
    Gross profit 61,256  84,305  127,688  166,473 
    Operating expenses:        
    Research and development 73,937  56,158  147,597  114,839 
    Sales and marketing 37,651  28,234  77,688  57,119 
    General and administrative 35,672  18,365  68,716  36,201 
    Amortization of intangible assets 6,745  1,487  13,802  3,094 
    Acquisition and integration costs 12,164    19,298   
    Restructuring and related 3,471  1,680  20,659  1,517 
    Total operating expenses 169,640  105,924  347,760  212,770 
    Loss from operations (108,384) (21,619) (220,072) (46,297)
    Other income (expense), net:            
    Interest income 183  629  949  1,526 
    Interest expense (7,280) (2,501) (14,843) (6,184)
    Other gain (loss), net: 3,210  1,429  287  1,935 
    Total other income (expense), net (3,887) (443) (13,607) (2,723)
    Loss before income taxes (112,271) (22,062) (233,679) (49,020)
    Provision for (benefit from) income taxes 1,385  (124) 1,578  (802)
    Net loss (113,656) (21,938) (235,257) (48,218)
                     
    Net loss per common share - basic and diluted: $(0.64) $(0.14) $(1.33) $(0.32)
                     
    Weighted average shares used in computing net loss per common share - basic and diluted: 178,677  152,259  177,542  151,296 
                     

    Infinera Corporation
    GAAP to Non-GAAP Reconciliations
    (In thousands, except percentages and per share data)
    (Unaudited)
     

     Three Months Ended Six Months Ended
     June 29, 2019   March 30, 2019   June 30, 2018   June 29,
     2019
       June 30, 2018  
    Reconciliation of Revenue:                   
    U.S. GAAP as reported$296,250    $292,707    $208,227    $588,957    $410,908   
    Acquisition-related deferred revenue adjustment(1)2,530    2,905        5,435       
    Other customer related charges(2) 8,100               8,100        
    Non-GAAP as adjusted$306,880    $295,612    $208,227    $602,492    $410,908   
                        
    Reconciliation of Gross Profit:                   
    U.S. GAAP as reported$61,256  20.7% $66,432  22.7% $84,305  40.5% $127,688  21.7% $166,473  40.5%
    Acquisition-related deferred revenue adjustment(1)2,530    2,905        5,435       
    Other customer related charges(2)8,100              8,100        
    Stock-based compensation(3)1,591    1,328    2,039    2,919    3,033   
    Amortization of acquired intangible assets(4)8,098    8,252    4,943    16,350    10,284   
    Acquisition and integration costs(5)10,700    2,064        12,764       
    Acquisition-related inventory adjustments(6)    1,778        1,778       
    Restructuring and related(7)1,864    21,466    26    23,330    43   
    Non-GAAP as adjusted$94,139  30.7% $104,225  35.3% $91,313  43.9% $198,364  32.9% $179,833  43.8%
                        
    Reconciliation of Operating Expenses:                   
    U.S. GAAP as reported$169,640    $178,120    $105,924    $347,760    $212,770   
    Stock-based compensation(3)11,456    7,385    10,005    18,841    19,994   
    Amortization of acquired intangible assets(4)6,745    7,057    1,487    13,802    3,094   
    Acquisition and integration costs(5)12,164    7,134        19,298       
    Restructuring and related(7)3,471    17,188    1,680    20,659    1,517   
    Litigation charges(8)4,050            4,050       
    Non-GAAP as adjusted$131,754    $139,356    $92,752    $271,110    $188,165   
                        
    Reconciliation of Loss from Operations:                   
    U.S. GAAP as reported$(108,384) (36.6)% $(111,688) (38.2)% $(21,619) (10.4)% $(220,072) (37.4)% $(46,297) (11.3)%
    Acquisition-related deferred revenue adjustment(1)2,530    2,905        5,435       
    Other customer related charges(2) 8,100              8,100       
    Stock-based compensation(3)13,047    8,713    12,044    21,760    23,027   
    Amortization of acquired intangible assets(4)14,843    15,309    6,430    30,152    13,378   
    Acquisition and integration costs(5)22,864    9,198        32,062       
    Acquisition-related inventory adjustments(6)    1,778        1,778       
    Restructuring and related(7)5,335    38,654    1,706    43,989    1,560   
    Litigation charges(8)4,050             4,050       
    Non-GAAP as adjusted$(37,615) (12.3)% $(35,131) (11.9)% $(1,439) (0.7)% $(72,746) (12.1)% $(8,332) (2.0)%
                                       


     Three Months EndedSix Months Ended
     June 29, 2019    March 30, 2019    June 30, 2018    June 29,
     2019
        June 30, 2018   
    Reconciliation of Net Loss:                        
    U.S. GAAP as reported$(113,656)    $(121,601)    $(21,938)    $(235,257)    (48,218)   
    Acquisition-related deferred revenue adjustment(1)2,530     2,905          5,435         
    Other customer related charges(2)8,100               8,100         
    Stock-based compensation(3)13,047     8,713     12,044     21,760     23,027    
    Amortization of acquired intangible assets(4)14,843     15,309     6,430     30,152     13,378    
    Acquisition and integration costs(5)22,864     9,198          32,062         
    Acquisition-related inventory adjustments(6)     1,778          1,778         
    Restructuring and related(7)5,335     38,654     1,706     43,989     1,560    
    Litigation charges(8)4,050                 4,050          
    Amortization of debt discount(9)4,348     4,241     1,892     8,589     4,671    
    Gain/Loss on non-marketable equity investment(10)

    (1,009)              (1,009)        
    Income tax effects(11)(2,470)    (426)    (1,415)    (2,896)    (2,944)   
    Non-GAAP as adjusted$(42,018)    $(41,229)    $(1,281)    $(83,247)    $(8,526)   
                             
    Net Loss per Common Share - Basic and Diluted:                        
    U.S. GAAP as reported$(0.64)    $(0.69)    $(0.14)    $(1.33)    $(0.32)   
    Non-GAAP as adjusted$(0.24)    $(0.23)    $(0.01)    $(0.47)    $(0.06)   
                             
    Weighted Average Shares Used in Computing Net Loss per Common Share - Basic and Diluted:178,677     176,406     152,259     177,542     151,296    
    _____________________________________                             
    (1) Business combination accounting principles require Infinera to write down to fair value its maintenance support contracts assumed in the Coriant acquisition. The revenue for these support contracts is deferred and typically recognized over a one-year period, so Infinera's GAAP revenue for the one year period after the acquisition will not reflect the full amount of revenue that would have been reported if the acquired deferred revenue was not written down to fair value. The non-GAAP adjustment eliminates the effect of the deferred revenue write-down. Management believes these adjustments to the revenue from these support contracts are useful to investors as an additional means to reflect revenue trends of Infinera's business.
     
    (2) Other customer related charges include one-time benefits and charges that are not directly related to Infinera’s ongoing or core business results. During the quarter, Infinera agreed to reimburse a customer for certain expenses incurred by them in connection with a network service outage that occurred during the fourth quarter of fiscal 2018. Management has excluded the impact of this charge in arriving at Infinera's non-GAAP results because it is non-recurring, and management believes that this reimbursement is not indicative of ongoing operating performance.
     
    (3) Stock-based compensation expense is calculated in accordance with the fair value recognition provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation effective January 1, 2006. The following table summarizes the effects of stock-based compensation related to employees and non-employees (in thousands):


      Three Months Ended Six Months Ended
      June 29,
    2019
     March 30,
     2019
     June 30,
    2018
     June 29,
    2019
     June 30,
    2018
    Cost of revenue $663  $538  $624  $1,201  $502 
    Research and development 6,127  3,603  4,192  9,730  8,516 
    Sales and marketing 2,099  1,547  3,046  3,646  5,944 
    General and administration 3,230  2,235  2,767  5,465  5,534 
      12,119  7,923  10,629  20,042  20,496 
    Cost of revenue - amortization from balance sheet* 928  790  1,415  1,718  2,531 
    Total stock-based compensation expense $13,047  $8,713  $12,044  $21,760  $23,027 
    ______________________________________
    * Stock-based compensation expense deferred to inventory and deferred inventory costs in prior periods recognized in the current period.
     
    (4) Amortization of acquired intangible assets consists of developed technology, trade names, customer relationships and backlog acquired in connection with the Coriant acquisition, which closed during the fourth quarter of 2018. Amortization of acquired intangible assets also consists of amortization of developed technology, trade names and customer relationships acquired in connection with the Transmode AB acquisition. U.S. GAAP accounting requires that acquired intangible assets are recorded at fair value and amortized over their useful lives. As this amortization is non-cash, Infinera has excluded it from its non-GAAP gross profit, operating expenses and net income measures. Management believes the amortization of acquired intangible assets is not indicative of ongoing operating performance and its exclusion provides a better indication of Infinera's underlying business performance. 
     
    (5) Acquisition and integration costs consist of legal, financial, IT, manufacturing-related costs, employee-related costs and professional fees incurred in connection with Infinera's acquisition of Coriant. These amounts have been adjusted in arriving at Infinera's non-GAAP results because management believes that these expenses are non-recurring, not indicative of ongoing operating performance and their exclusion provides a better indication of Infinera's underlying business performance.
     
    (6) Business combination accounting principles require Infinera to measure acquired inventory at fair value. The fair value of inventory reflects the acquired company’s cost of manufacturing plus a portion of the expected profit margin. The non-GAAP adjustment to Infinera's cost of sales excludes the amortization of the acquisition-related step-up in carrying value for units sold in the quarter. Additionally, in connection with the Coriant acquisition, cost of sales excludes a one-time adjustment in inventory as a result of renegotiated supplier agreements that contained unusually higher than market pricing. Management believes these adjustments are useful to investors as an additional means to reflect ongoing cost of sales and gross margin trends of Infinera's business.
     
    (7) Restructuring and related costs are associated with Infinera's two restructuring initiatives implemented during the fourth quarter of 2018 and during the fourth quarter of 2017, the planned closure of the Company's Berlin, Germany manufacturing facility and Coriant's historical restructuring plan associated with their early retirement plan. In addition, management included accelerated amortization on operating lease right-of-use assets due to the cease use of certain facilities. Management has excluded the impact of these charges in arriving at Infinera's non-GAAP results as they are non-recurring in nature and its exclusion provides a better indication of Infinera's underlying business performance.
     
    (8) Litigation charges are associated with the preliminary settlement of a litigation matter agreed to during the quarter ended June 29, 2019. Management has excluded the impact of this charge in arriving at Infinera's non-GAAP results because it is non-recurring, and management believes that this expense is not indicative of ongoing operating performance.
     
    (9) Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be separately accounted for as liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's non-convertible debt borrowing rate. Accordingly, for GAAP purposes, Infinera is required to amortize as debt discount an amount equal to the fair value of the conversion option that was recorded in equity as interest expense on the $402.5 million in aggregate principal amount of its 2.125% convertible debt issuance in September 2018 due September 2024 and the $150 million in aggregate principal amount of its 1.75% convertible debt issuance in May 2013 due June 2018, over the term of the respective notes. Interest expense has been excluded from Infinera's non-GAAP results because management believes that this non-cash expense is not indicative of ongoing operating performance and provides a better indication of Infinera's underlying business performance.
     
    (10) Management has excluded the gain on the sale related to non-marketable equity investments in arriving at Infinera's non-GAAP results because it is non-recurring, and management believes that this income is not indicative of ongoing operating performance
     
    (11) The difference between the GAAP and non-GAAP tax provision is due to the net tax effects of the purchase accounting adjustments, acquisition-related costs and amortization of acquired intangible assets.
     



    Infinera Corporation
    Condensed Consolidated Balance Sheets
    (In thousands, except par values)
    (Unaudited)

     June 29,
     2019
     December 29,
     2018
    ASSETS   
    Current assets:   
    Cash and cash equivalents$109,034  $202,954 
    Short-term investments1,497  26,511 
    Short-term restricted cash2,742  13,229 
    Accounts receivable, net of allowance for doubtful accounts of $4,129 in 2019 and $3,680 in 2018260,352  317,115 
    Inventory338,793  311,888 
    Prepaid expenses and other current assets109,817  85,400 
    Total current assets822,235  957,097 
    Property, plant and equipment, net159,210  342,820 
    Operating lease right-of-use assets64,740   
    Intangible assets200,991  233,119 
    Goodwill229,281  227,231 
    Long-term restricted cash26,745  26,154 
    Other non-current assets10,817  14,849 
    Total assets$1,514,019  $1,801,270 
    LIABILITIES AND STOCKHOLDERS’ EQUITY   
    Current liabilities:   
    Accounts payable$194,882  $191,187 
    Accrued expenses and other current liabilities158,617  131,891 
    Accrued compensation and related benefits77,152  71,152 
    Accrued warranty23,364  20,103 
    Deferred revenue78,417  88,534 
    Total current liabilities532,432  502,867 
    Long-term debt, net284,270  266,929 
    Long-term financing lease obligation1,413  193,538 
    Accrued warranty, non-current20,782  20,918 
    Deferred revenue, non-current28,510  31,768 
    Deferred tax liability10,094  13,347 
    Operating lease liabilities58,631   
    Other long-term liabilities62,817  68,082 
    Commitments and contingencies (Note 19)   
    Stockholders’ equity:   
    Preferred stock, $0.001 par value
      Authorized shares – 25,000 and no shares issued and outstanding
       
    Common stock, $0.001 par value
    Authorized shares – 500,000 as of June 29, 2019 and December 29, 2018
       
    Issued and outstanding shares – 179,339 as of June 29, 2019 and 175,452 as of December 29, 2018179  175 
    Additional paid-in capital1,715,657  1,685,916 
    Accumulated other comprehensive loss(32,236) (25,300)
    Accumulated deficit(1,168,530) (956,970)
    Total stockholders' equity515,070  703,821 
    Total liabilities and stockholders’ equity$1,514,019  $1,801,270 
            

    Infinera Corporation
    Condensed Consolidated Statements of Cash Flows
    (In thousands)
    (Unaudited)

      Six Months Ended
      June 29,
     2019
     June 30,
     2018
    Cash Flows from Operating Activities:    
    Net loss $(235,257) $(48,218)
    Adjustments to reconcile net loss to net cash used in operating activities:    
    Depreciation and amortization 62,143  33,250 
    Non-cash restructuring charges and related (credits) 18,172  (81)
    Amortization of debt discount and issuance costs 9,245  5,072 
    Operating lease amortization, net of accretion 23,355   
    Stock-based compensation expense 21,760  23,027 
    Other loss 10  167 
    Changes in assets and liabilities:    
    Accounts receivable 55,216  (22,015)
    Inventory (30,640) (8,703)
    Prepaid expenses and other assets (30,958) (1,809)
    Accounts payable 4,726  24,458 
    Accrued liabilities and other expenses (5,472) (14,617)
    Deferred revenue (12,267) 2,351 
    Net cash used in operating activities (119,967) (7,118)
    Cash Flows from Investing Activities:    
    Purchase of available-for-sale investments   (2,986)
    Proceeds from sales of available-for-sale investments   23,114 
    Proceeds from sale of non-marketable equity investments 1,009   
    Proceeds from maturities of investments 25,085  98,112 
    Acquisition of business, net of cash acquired (10,000)  
    Purchase of property and equipment (15,784) (21,503)
    Net cash provided by (used in) investing activities 310  96,737 
    Cash Flows from Financing Activities:    
    Proceeds from issuance of debt, net 8,584   
    Repayment of debt (96) (150,000)
    Proceeds from issuance of common stock 7,740  11,066 
    Minimum tax withholding paid on behalf of employees for net share settlement (354) (964)
    Net cash provided by (used in) financing activities 15,874  (139,898)
    Effect of exchange rate changes on cash and restricted cash (33) (2,218)
    Net change in cash, cash equivalents and restricted cash (103,816) (52,497)
    Cash, cash equivalents and restricted cash at beginning of period 242,337  121,486 
    Cash, cash equivalents and restricted cash at end of period(1) $138,521  $68,989 
    Supplemental disclosures of cash flow information:    
    Cash paid for income taxes, net of refunds $13,606  $2,210 
    Cash paid for interest $4,687  $1,328 
    Supplemental schedule of non-cash investing and financing activities:    
    Third-party manufacturer funding for transfer expenses incurred $3,327  $ 
    Transfer of inventory to fixed assets $2,195  $1,684 
     
    (1) Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets:


     June 29,
     2019
     June 30,
     2018
        
     (In thousands)
    Cash and cash equivalents$109,034  $63,308 
    Short-term restricted cash2,742  308 
    Long-term restricted cash26,745  5,373 
    Total cash, cash equivalents and restricted cash$138,521  $68,989 
            

    Infinera Corporation
    Supplemental Financial Information
    (Unaudited)

     Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
    GAAP Revenue ($ Mil)$192.6  $195.8  $202.7  $208.2  $200.4  $332.1  $292.7  $296.3 
    GAAP Gross Margin % 35.2%  24.1%  40.5%  40.5%  35.0%  25.4%  22.7%  20.7%
    Non-GAAP Gross Margin %(1) 39.1%  37.5%  43.7%  43.9%  38.4%  31.8%  35.3%  30.7%
    Revenue Composition:               
    Domestic % 59%  53%  64%  58%  49%  39%  45%  45%
    International % 41%  47%  36%  42%  51%  61%  55%  55%
    Customers >10% of Revenue 2   1   2   2   2   2   1   1 
    Cash Related Information:               
    Cash from Operations ($ Mil)($20.9) ($1.0) ($14.1) $7.0  ($20.4) ($71.6) ($56.2) ($63.8)
    Capital Expenditures ($ Mil)$11.0  $7.8  $8.0  $13.5  $5.5  $10.7  $6.6  $9.2 
    Depreciation & Amortization ($ Mil)$16.8  $16.6  $17.0  $16.3  $17.1  $50.2  $31.0  $31.2 
    DSOs 65   59   73   65   70   87   83   80 
    Inventory Metrics:               
    Raw Materials ($ Mil)$35.8  $27.4  $30.3  $30.5  $33.6  $74.5  $82.5  $70.4 
    Work in Process ($ Mil)$84.3  $59.6  $66.5  $61.6  $56.4  $57.2  $63.0  $59.5 
    Finished Goods ($ Mil)$122.7  $127.7  $119.1  $127.2  $121.9  $180.2  $187.0  $208.9 
    Total Inventory ($ Mil)$242.8  $214.7  $215.9  $219.3  $211.9  $311.9  $332.5  $338.8 
    Inventory Turns(2) 1.9   2.3   2.1   2.1   2.3   2.9   2.3   2.5 
    Worldwide Headcount 2,296   2,145   2,084   2,070   2,079   3,876   3,708   3,632 
    Weighted Average Shares Outstanding (in thousands):               
    Basic 148,777   149,412   150,333   152,259   153,492   174,908   176,406   178,677 
    Diluted(3) 149,714   150,098   151,633   154,777   154,228   175,629   176,602   179,343 
     
    (1) Non-GAAP adjustments include restructuring and related costs (credit), non-cash stock-based compensation expense, certain purchase accounting adjustments related to Infinera's acquisitions, amortization of acquired intangible assets, other customer related charges and certain other one-time charges. For a description of this non-GAAP financial measure, please see the section titled, “GAAP to Non-GAAP Reconciliations” of this press release for a reconciliation to the most directly comparable GAAP financial measures.
     
    (2) Infinera calculates non-GAAP inventory turns as annualized non-GAAP cost of revenue before adjustments for restructuring and related costs, non-cash stock-based compensation expense, and certain purchase accounting adjustments, divided by the average inventory for the quarter.
     
    (3) Diluted shares presented for information only.
     


    Infinera Corporation

    GAAP to Non-GAAP Reconciliation of Financial Outlook
    (In millions, except percentages and per share data)
    (Unaudited)

    The following amounts represent the midpoint of the expected range:

      Q3'19
      Outlook
    Reconciliation of Revenue:  
    U.S. GAAP $328 
    Acquisition-related deferred revenue adjustment 2 
    Non-GAAP $330 
       
    Reconciliation of Gross Margin:  
    U.S. GAAP 27%
    Acquisition-related deferred revenue adjustment 1
    %
    Stock-based compensation 1%
    Amortization of acquired intangible assets 2%
    Restructuring and related 1%
    Non-GAAP 32%
       
    Reconciliation of Operating Expenses:  
    U.S. GAAP $150 
    Stock-based compensation (9)
    Amortization of acquired intangible assets (5)
    Acquisition and integration costs (5)
    Restructuring and related (1)
    Non-GAAP $130 
       
    Reconciliation of Operating Margin:  
    U.S. GAAP (19)%
    Acquisition-related deferred revenue adjustment 1%
    Stock-based compensation 3%
    Amortization of acquired intangible assets 4%
    Acquisition and integration costs 3%
    Restructuring and related 1%
    Non-GAAP (7)%
       
    Reconciliation of Net Loss per Common Share:  
    U.S. GAAP $(0.40)
    Acquisition-related deferred revenue adjustment 0.01 
    Stock-based compensation 0.06 
    Amortization of acquired intangible assets 0.07 
    Acquisition and integration costs 0.06 
    Restructuring and related 0.01 
    Amortization of debt discount 0.02 
    Non-GAAP $(0.17)
         

    Contacts:

    Media: 
    Anna Vue
    Tel. +1 (916) 595-8157
    avue@infinera.com

    Investors:
    Ted Moreau
    Tel: + 1 (408) 542-6205
    tmoreau@infinera.com

    Primary Logo

Опубликовать