Infinera bucked the seasonal first-quarter optical industry decline trend, reporting that its first-quarter 2014 revenues were $142.8 million, up sequentially from $139.1 million in the fourth quarter of 2013 and $124.6 million in the first quarter of 2013.
The company's GAAP gross margins for the quarter were 40.9 percent, up from 40.2 percent in the fourth quarter of 2013 and 34.2 percent in the first quarter of 2013.
It also reduced GAAP net losses for the quarter to $(4.4) million, or $(0.04) per share, from $(10.2) million, or $(0.08) per share, in the fourth quarter of 2013, and a net loss of $(15.3) million, or $(0.13) per share, in the first quarter of 2013.
Non-GAAP net income for the quarter was $4.2 million, or $0.03 per share, compared with a net loss of $(0.2) million, or break-even on an earnings-per-share basis in the fourth quarter of 2013, and net loss of $(7.3) million, or $(0.06) per share, in the first quarter of 2013.
One of the key growth areas for Infinera has been the (OTN) switching and transport equipment segment. A recent Infonetics report revealed that OTN became a large growth engine for three of the largest optical vendors in 2013: Alcatel-Lucent (NYSE: ALU), Ciena and Infinera.
Despite its gains with large carrier accounts like TeliaSonera, the company suffered a setback in January when it was passed over for a large-scale long-haul optical contract with Verizon.
George Notter, a financial analyst with Jeffries, wrote in a report that Infinera lost a $100 million Verizon (NYSE: VZ) contract for long-haul optical transmission hardware to Alcatel-Lucent.
Looking forward to the second quarter, Infinera has forecast revenue of about $160 million to $170 million.
Shares of Infinera were listed at $8.82, down 19 cents or 2.11 percent, at the end of trading Wednesday on the Nasdaq stock exchange.
- see the earnings release
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