SAN JOSE, Calif. - Infinera (NASDAQ:INFN) Corporation (NASDAQ:INFN), a global supplier of optical networking solutions, reported disappointing financial results for the first quarter ended March 30, 2024, with both earnings and revenue falling short of Wall Street expectations.
The company's shares dropped 6.8% as it also provided a weaker-than-expected outlook for the second quarter.
Infinera announced a non-GAAP net loss of $38.3 million, or -$0.17 per diluted share, which was $0.04 worse than the analyst consensus of -$0.13. Revenue came in at $306.92 million, significantly below the consensus estimate of $336.12 million and a decrease of 21.7% from the $392.1 million reported in the same quarter last year.
The company's guidance for the second quarter of 2024 also fell short of analyst projections. Infinera expects a non-GAAP net loss per share in the range of -$0.13 to -$0.05, compared to the consensus estimate of $0.00. Revenue is anticipated to be between $310 million and $350 million, whereas analysts were expecting $373.4 million.
Infinera's CEO, David Heard, commented on the first quarter, "Q1 2024 was an important quarter for us marked by significant customer, RFP, and design-win momentum, but also a quarter where the industry was challenged as customers held back spending and pushed out projects." He added, "Our bookings were up year-over-year, and met our plan, with the multi-year revenue opportunity associated with our design wins representing potentially the largest in the company’s history."
Infinera's financial health remains stable with the company generating $24.0 million of operating cash flow and free cash flow of $16.0 million for the quarter. However, the company's forward-looking statements indicate that the first half of the year could represent the bottom of a demand cycle for the optical industry, with expectations of improvements in the latter half of the year leading to a strong demand cycle in 2025.
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