Infinera reported fourth-quarter 2014 revenues of $186 million, up from $173.6 million in the third quarter of 2014 and $139.1 million in the fourth quarter of 2013, due to ongoing customer wins of its DTN-X platform.
During the quarter, Infinera added 10 new customers, including three that were new to the company. The vendor said that the three new customers were all from Europe, consisting of a wholesale and enterprise carrier and two government-funded entities.
"We ended 2014 with a total 59 invoiced DTN-X customers," said Tom Fallon, CEO of Infinera, during the earnings call, according to a Seeking Alpha transcript. "Of these, 19 customers were new to Infinera, demonstrating market expansion and the displacement of competitors."
In addition to the DTN-X, the vendor has begun to see momentum for its emerging Cloud Xpress product.
"We started shipping Cloud Xpress for revenue in December and have received eight customer commitments in the form of POs, contracts or field trials to date including three top Internet content providers," Fallon said, adding that "in Q1 2015 we will start reporting on invoiced customers."
The company's GAAP gross margin was 45.3 percent, up slightly sequentially from 43.4 percent in the third quarter of 2014 and 40.2 percent in the fourth quarter of 2013. Likewise, GAAP operating margin was 6.9 percent in the fourth quarter of 2014 compared to 4.3 percent in the third quarter of 2014 and an operating loss of 5.1 percent in the fourth quarter of 2013.
GAAP net income for the quarter was $8.4 million, or $0.06 per diluted share, compared to net income of $4.8 million, or $0.04 per diluted share, in the third quarter of 2014 and a net loss of $10.2 million, or $0.08 per share, in the fourth quarter of 2013.
For the total year 2014, Infinera's revenue was $668.1 million, up from $544.1 million in 2013.
From a regional perspective, domestic revenues made up 63 percent of the company's quarterly revenue, while international contributed 37 percent. A key driver in the regional revenue mix was seen in the international segment of Infinera's business, which made up 42 percent of total revenue, up from 30 percent in the third quarter.
"While our business in North America remains robust, growth in the quarter was fueled by EMEA and Latin America," said Brad Feller, CFO of Infinera during the earnings call. "The EMEA region accounted for $53 million or 29% of total revenue, up from 20% in Q3, as we saw more customers starting to transition to 100 gig in that region. Partner growth in Latin America drove revenue in that region to 9% of total revenue, up from 5% in Q3."
Feller added that Asia-Pacific "remained a smaller portion of our business contributing 4% of total revenue, down from 5% in Q3."
Looking forward, Infinera has projected first-quarter 2015 revenue to be in the range of $180 million to $190 million.
Shares of Infinera were listed at $16.32, up $1.92, or 13 percent, in Friday morning pre-market trading on the Nasdaq stock exchange.
For more:
- see the earnings release
- see the earnings transcript (sub. req.)
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