SAN JOSE, Calif. -- Infinera Corporation (NASDAQ: INFN) today released financial results for its first quarter ended April 1, 2023.
GAAP revenue for the quarter was $392.1 million compared to $485.9 million in the fourth quarter of 2022 and $338.9 million in the first quarter of 2022.
GAAP gross margin for the quarter was 37.5% compared to 37.1% in the fourth quarter of 2022 and 32.9% in the first quarter of 2022. GAAP operating margin for the quarter was (2.4)% compared to 5.2% in the fourth quarter of 2022 and (10.8)% in the first quarter of 2022.
GAAP net loss for the quarter was $(8.4) million, or $(0.04) per diluted share, compared to net income of $33.5 million, or $0.14 per diluted share, in the fourth quarter of 2022, and net loss of $(41.9) million, or $(0.20) per diluted share, in the first quarter of 2022.
Non-GAAP gross margin for the quarter was 38.8% compared to 38.7% in the fourth quarter of 2022 and 36.2% in the first quarter of 2022. Non-GAAP operating margin for the quarter was 3.5% compared to 10.5% in the fourth quarter of 2022 and (1.0)% in the first quarter of 2022.
Non-GAAP net income for the quarter was $5.7 million, or $0.02 per diluted share, compared to non-GAAP net income of $40.3 million, or $0.16 per diluted share, in the fourth quarter of 2022, and non-GAAP net loss of $(14.0) million, or $(0.07) per diluted share, in the first quarter of 2022.
A further explanation of the use of non-GAAP financial information and a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure can be found at the end of this press release.
Infinera CEO David Heard said, “I am pleased with our solid start to 2023 with revenue, margins, and earnings per share all coming in above the mid-point of our outlook range. Compared to the year-ago quarter, we grew revenue by 16%, above our annual target of 8% for 2023, and expanded gross margin by more than 250bps."
"As we look ahead to the second quarter, we are planning to achieve continued year-over-year revenue growth and margin expansion and to deliver approximately 10% revenue growth in the first half of 2023. We remain focused on the six milestones we laid out at our investor day in March, which includes launching our subsystems products and driving to at least a $1 per share in earnings by 2025-2026."
Financial Outlook
Infinera's outlook for the quarter ending July 1, 2023, is as follows:
Revenue is expected to be $375 million +/- $20 million. GAAP gross margin is expected to be 37.5% +/- 150 bps. Non-GAAP gross margin is expected to be 38.5% +/- 150 bps. GAAP operating expenses are expected to be $162 million +/- $2 million. Non-GAAP operating expenses are expected to be $142 million +/- $2 million. GAAP operating margin is expected to be (6.0)% +/- 300 bps. Non-GAAP operating margin is expected to be 0.6% +/- 300 bps. GAAP net loss per share is expected to be $(0.12) +/- $0.05. Non-GAAP net loss per share is expected to be $(0.03) +/- $0.05.
