SAN JOSE, Calif.: Infinera Corporation (NASDAQ: INFN) today released financial results for its third quarter ended September 25, 2021.

GAAP revenue for the quarter was $355.8 million compared to $338.2 million in the second quarter of 2021 and $340.2 million in the third quarter of 2020.

GAAP gross margin for the quarter was 33.2% compared to 35.6% in the second quarter of 2021 and 31.8% in the third quarter of 2020. GAAP operating margin for the quarter was (8.7)% compared to (6.9)% in the second quarter of 2021 and (7.9)% in the third quarter of 2020.

GAAP net loss for the quarter was $(53.8) million, or $(0.26) per share, compared to $(35.6) million, or $(0.17) per share, in the second quarter of 2021, and $(35.9) million, or $(0.19) per share, in the third quarter of 2020.

Non-GAAP revenue for the quarter was $356.8 million compared to $339.2 million in the second quarter of 2021 and $341.2 million in the third quarter of 2020.

Non-GAAP gross margin for the quarter was 38.0% compared to 37.7% in the second quarter of 2021 and 35.2% in the third quarter of 2020. Non-GAAP operating margin for the quarter was 2.4% compared to 0.8% in the second quarter of 2021 and 2.2% in the third quarter of 2020.

Non-GAAP net loss for the quarter was $(3.0) million, or $(0.01) per share, compared to net loss of $(6.0) million, or $(0.03) per share, in the second quarter of 2021, and a net loss of $(0.8) million, or $(0.01) per share, in the third quarter of 2020.

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, “Q3 was a strong quarter for us, with revenue coming in ahead of the mid-point of our outlook range and both non-GAAP gross margin and operating margin exceeding the high-end of our outlook range. We delivered these results against a challenging supply chain environment and ended the quarter with record backlog.”

“The demand drivers fueling our business are robust and we remain focused on executing our strategy with an enhanced leadership team. Having refreshed our portfolio, we are ramping our ICE6 products and achieving greater market traction. Based on this foundation, I remain confident in our ability to deliver on our financial goals for 2021 and our longer-term target business model."

Financial Outlook

Infinera's outlook for the fourth quarter ending December 25, 2021 is as follows:

GAAP revenue is expected to be $384 million +/- $15 million. Non-GAAP revenue is expected to be $385 million +/- $15 million. GAAP gross margin is expected to be 35.0% +/- 150 bps. Non-GAAP gross margin is expected to be 37.0% +/- 150 bps. GAAP operating expenses are expected to be $154 million +/- $2 million. Non-GAAP operating expenses are expected to be $131 million +/- $2 million. GAAP operating margin is expected to be (5.1)% +/- 200 bps. Non-GAAP operating margin is expected to be 3.0% +/- 200 bps.