Infinera reported revenue in the first quarter, up 12.8 percent the year before, to $ 330.3 million, near the high end of its guidance. The company’s net loss was greater than expected at $ 99.3 million or $ 0.55 per share. Shares compared to expectations of $ 0.35-0.41.
Adjusted EPS was also a higher-than-expected deficit of $ 0.27 against a loss of $ 0.23 a year ago. This included a $ 12.9 million currency loss, primarily due to devaluations in Latin America. Excluding the currency effect, adjusted EPS would have been a loss of $ 0.20, the company said.
Infinera said the results were impacted by one-off costs associated with the Covid-19 pandemic, but that it was able to deal with the challenges of the supply chain and continue to grow revenue and orders. Demand increased from some operators due to the growing need for bandwidth.
While the macroeconomic outlook is difficult in the second half, Infinera said it is on track with key projects such as the ICE6 800G until later this year. The 600G Groove has already been shipped to 11 customers, and the company said it also had record orders for its XTM metro product.
For the second quarter, Infinera expected revenue of $ 310-330 million. Corresponding to a growth of approx. 4 percent from the previous year. The adjusted gross margin is estimated at 31-35 percent against 28.3 percent in the first quarter, and the operating margin is around 15.5 percent plus or minus 300 basis points.