Infinera Reports Q4 and 2016 year Results
Product transition holding back revenue growth and profitability, says CEO
Network company Infinera has released financial results for its fourth quarter and fiscal year ended December 31, 2016.
GAAP revenue for the quarter was $181.0 million compared to $185.5 million in Q3 2016 and $260.0 million in Q4 2015. GAAP gross margin for the quarter was 38.1 percent compared to 45.6 percent in Q3 2016 and 44.5 percent in Q4 2015. GAAP operating margin for the quarter was (25.3) percent compared to (5.9) percent in Q3 2016 and 5.3 percent in Q4 2015.
GAAP net loss for the quarter was $(36.3) million, or $(0.25) per share, compared to $(11.2) million, or $(0.08) per share, in Q3 2016 and net income of $12.6 million, or $0.08 per diluted share, in Q4 2015.
"We executed well in the fourth quarter and delivered results at the high-end of our guidance," said Tom Fallon, Infinera's CEO. "As network infrastructures rapidly evolve, our objective remains to help our customers win by delivering the highest performing solutions at the Transport Layer."Â
He added: "Though our product transition is currently holding back revenue growth and profitability, by introducing next generation ICE4 products, my belief is that we are well positioned to begin improving our business results over the course of 2017 and for significant opportunities in the future."
Non-GAAP gross margin for the quarter was 41.8 percent compared to 49.2 percent in Q3 2016 and 48.3 percent in Q4 2015. Non-GAAP operating margin for the quarter was (9.2) percent compared to 3.6 percent in Q3 2016 and 12.7 percent in Q4 2015.
Non-GAAP net loss for the quarter was $(17.0) million, or $(0.12) per share, compared to net income of $7.4 million, or $0.05 per diluted share, in Q3 2016, and net income of $32.0 million, or $0.21 per diluted share, in Q4 2015.
Fiscal Year Results
GAAP revenue for the year was $870.1 million compared to $886.7 million in 2015. GAAP gross margin for the year was 45.2 percent compared to 45.5 percent in 2015. GAAP operating margin for the year was (3.0) percent compared to 6.7 percent in 2015. GAAP net loss for the year was $(23.9) million, or $(0.17) per share, compared to net income of $51.4 million, or $0.36 per diluted share, in 2015.
Non-GAAP gross margin for the year was 48.3 percent compared to 47.8 percent in 2015. Non-GAAP operating margin for the year was 6.2 percent compared to 13.1 percent in 2015. Non-GAAP net income for the year was $49.4 million, or $0.34 per diluted share, compared to net income of $112.0 million, or $0.78 per diluted share, in 2015.
