SUNNYVALE, Calif. -- Infinera Corporation (NASDAQ: INFN) today released financial results for its third quarter ended September 26, 2020.

GAAP revenue for the quarter was $340.2 million compared to $331.6 million in the second quarter of 2020 and $325.3 million in the third quarter of 2019.

GAAP gross margin for the quarter was 31.8% compared to 29.4% in the second quarter of 2020 and 26.7% in the third quarter of 2019. GAAP operating margin for the quarter was (7.9)% compared to (13.5)% in the second quarter of 2020 and (21.3)% in the third quarter of 2019.

GAAP net loss for the quarter was $(35.9) million, or $(0.19) per share, compared to $(61.6) million, or $(0.33) per share, in the second quarter of 2020, and $(84.8) million, or $(0.47) per share, in the third quarter of 2019.

Non-GAAP revenue for the quarter was $341.2 million compared to $332.6 million in the second quarter of 2020 and $327.6 million in the third quarter of 2019.

Non-GAAP gross margin for the quarter was 35.2% compared to 33.8% in the second quarter of 2020 and 33.1% in the third quarter of 2019. Non-GAAP operating margin for the quarter was 2.2% compared to (1.8)% in the second quarter of 2020 and (5.7)% in the third quarter of 2019.

Non-GAAP net income for the quarter was $4.2 million, or $0.02 per share, compared to a net loss of $(17.2) million, or $(0.09) per share, in the second quarter of 2020, and a net loss of $(30.5) million, or $(0.17) per share, in the third quarter of 2019.

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.

“We delivered a very strong Q3, achieving non-GAAP operating profitability with non-GAAP revenue, gross margin and operating margin growing both sequentially and year-over-year,” said David Heard, Infinera COO. “We remain focused on the opportunity to grow our market share, expand margins and drive earnings growth through innovation and operational execution.”

“I continue to be very optimistic about the opportunities ahead of us that are created as the industry transitions to 800G, Open Optical networks and intelligent pluggables,” continued Tom Fallon, Infinera CEO. “These transitions are happening in a healthier competitive environment where vertical integration and assurance of network security are increasingly valued.”

Financial Outlook

Infinera's outlook for the fourth quarter ending December 26, 2020 is as follows:

• GAAP revenue is expected to be $354 million +/- $15 million. Non-GAAP revenue is expected to be $355 million +/- $15 million.

• GAAP gross margin is expected to be 33.0% +/- 150 bps. Non-GAAP gross margin is expected to be 35.5% +/- 150 bps.

• GAAP operating expenses are expected to be $135 million +/- $1.0 million. Non-GAAP operating expenses are expected to be $116.0 million +/- $1.0 million.

• GAAP operating margin is expected to be (5.0)% +/- 200 bps. Non-GAAP operating margin is expected to be 3.0% +/- 200 bps.