Flooding in Thailand is impacting the operations of component and
service suppliers to the optical industry.

Fabrinet, one of Infinera’s contract manufacturers, reported this week a
significant escalation of the impact of the flooding on its facilities in
Thailand.

“Our thoughts and prayers are with our partners and their families
in Thailand as they deal with this disaster,” said Tom Fallon, CEO of
Infinera.

Infinera is executing business
continuity contingency plans using existing inventory and moving to alternate
contract manufacturers and second sources.

However, it will likely not be possible to transition all components and
subsystems quickly enough to avoid some supply chain disruption. Infinera’s
priority is to invest the necessary resources to minimize the number of
customers affected and to limit any impact on their operations.

Based on the information available at this time, Infinera currently
estimates the potential negative impact to its December quarter guidance to be
in the range of 5-15 percent of revenues. Factors affecting the size of the
revenue loss include, but are not limited to, Infinera’s ability to move production
to other locations, incrementally increase production at other facilities, and
utilize existing inventory to meet customers’ needs.

Additional factors that may affect the size of the revenue loss include
the level of demand from customers for the affected products, the level of
competition for alternative sources for relevant components and the ultimate
extent of the damage caused by the flooding.

By Telecomlead.com Team
[email protected]