Infinera's Q3 revenues rise to $142M on strong DTN-X sales
Infinera (Nasdaq: INFN) reported that third-quarter revenues rose 3 percent sequentially to $142.2 million due to ongoing adoption of its DTN-X optical platform.
The company's gross margin rose to 48 percent from 37 percent.
During the quarter, the vendor said it received purchased commitments from five new customers, including two new ones. This brings its total DTN-X service provider customer base to 39.
New DTN-X customers include two Tier 1 international service providers--including Rostelecom, Russia's largest telco--a large Internet content provider, a bandwidth wholesaler and a competitive carrier.
Driven by sales of its DTN-X platform to North American-based service providers, the vendor's international revenues totaled $39 million or 27 percent of its overall revenues. EMEA accounted for $32 million or 23 percent, with APAC and the other Americas representing 3 percent and 1 percent of revenues, respectively.
"Our success continues to be driven by strong customer acceptance of Infinera's Intelligent Transport Network and the DTN-X platform, which uniquely offers super-channel scale, converged OTN switching and GMPLS network automation today," said Tom Fallon, CEO of Infinera, during the earnings call.
These results are being driven by a number of new customer opportunities in EMEA, Asia Pacific and North America.
In EMEA, the vendor won its first customer in Africa, while seeing ongoing momentum in Western and Eastern Europe. Likewise, in Asia Pacific, Infinera won a contract with Dacom Crossing, a bandwidth wholesale operator based in South Korea.
Meanwhile, it is seeing ongoing demand from its existing Tier 1 cable and Internet content provider customers and new optical networking RFP activity.
"In North America, we see more opportunity in the next 12 months than we've seen in a long time, and we believe we are well-positioned to take significant market share," Fallon said. "Adoption of 100-gig and converged networks has been faster than industry analysts anticipated."
Looking forward, Infinera said it sees new opportunities with carriers that are looking for systems that have integrated DWDM and Optical Transport Network (OTN) switching. A recent Infonetics survey said that over 90 percent of service providers want to use these all-in-one devices in their networks.
In related news, Infinera announced that their CFO Ita Brennan will leave the company on Feb. 28, 2014 to pursue a new position at a startup company. Infinera said that it would start a search for a CFO and expects to outline a succession plan on or before she officially leaves the company
Shares of Infinera were trading at in Thursday morning trading at $10.13, down $1.31, or 11.45 percent, on the Nasdaq stock exchange.
Earnings summary: Wireline telecom earnings in the third quarter of 2013
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