Infinera, a leading provider of optical transport networking equipment and software, has announced its revenue and margin projections for the quarter ending March 30, 2024.
Infinera targets revenue in the range of $320 million to $350 million, accompanied by a gross margin forecast of 35.3 percent to 37.4 percent.
Infinera’s expectations for its fourth quarter ended December 30, 2023, have also been revised upward. Infinera now anticipates revenue between $435 million to $452 million, compared to the previous outlook of $421 million to $451 million. Operating margin is projected to be in the range of 0.0 percent to 3.0 percent, down from the previous forecast of 0.7 percent to 5.0 percent.
Infinera attributes its positive performance to the strong performance of its GX systems portfolio, which has secured new Tier 1 design wins with global service providers and internet content providers (ICPs). The GX systems now represent almost 50 percent of the expected annual product revenue. Additionally, Infinera has achieved a milestone by shipping its first 400-gig ICE-X coherent pluggables, integrated into its own GX metro platform.
Infinera has secured new deals with major service providers across various regions, including the U.S., Europe, India, Australia, and multinational subsea consortia. Notably, the metro segment has witnessed robust growth, accounting for nearly 50 percent of product revenue in 2023.
Infinera’s collaboration with U.S. hyperscalers has been fruitful, marking the fourth consecutive year of 30-plus revenue growth in this segment. The company has expanded its market share with hyperscalers by 1,000 basis points over the last four years.
Furthermore, Infinera’s exposure to hyperscalers, including indirect business through carrier service providers and subsea consortia, now approaches approximately 50 percent of its total revenue.
Infinera has introduced 400-gig XR pluggables and shipped metro systems with vertically integrated pluggables in Q4, aiming to drive margin expansion in the latter half of 2024. Additionally, the company has launched a new line system under the GX family, securing initial wins with five service providers and hyperscalers, which are expected to generate significant revenue and margins through follow-on transponder sales.
Infinera CEO David Heard expressed confidence in the company’s performance, stating, “For the full year of 2023, we expect to deliver our sixth consecutive year of revenue growth, expand gross margin to a level approaching 40 percent, and grow earnings per share on a year-over-year basis.”
