SAN JOSE, Calif. -- Infinera Corporation (NASDAQ: INFN) today released financial results for its third quarter ended September 24, 2022.

GAAP revenue for the quarter was $390.4 million compared to $358.0 million in the second quarter of 2022 and $355.8 million in the third quarter of 2021.

GAAP gross margin for the quarter was 34.4% compared to 30.5% in the second quarter of 2022 and 33.2% in the third quarter of 2021. GAAP operating margin for the quarter was (2.4)% compared to (11.1)% in the second quarter of 2022 and (8.7)% in the third quarter of 2021.

GAAP net loss for the quarter was $(11.9) million, or $(0.05) per share, compared to $(55.7) million, or $(0.26) per share, in the second quarter of 2022, and $(53.8) million, or $(0.26) per share, in the third quarter of 2021.

Non-GAAP gross margin for the quarter was 37.8% compared to 36.1% in the second quarter of 2022 and 38.0% in the third quarter of 2021. Non-GAAP operating margin for the quarter was 5.2% compared to 0.4% in the second quarter of 2022 and 2.4% in the third quarter of 2021.

Non-GAAP net income for the quarter was $9.9 million, or $0.05 per share, compared to net loss of $(10.1) million, or $(0.05) per share, in the second quarter of 2022, and net loss of $(3.0) million, or $(0.01) per share, in the third quarter of 2021.

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, “The third quarter was a strong quarter for us. We once again exceeded consensus expectations for both revenue and non-GAAP operating margin. On a year-over-year basis, we grew product revenue by 17% and total company revenue by 9%, and more than doubled operating profit, while generating free cash flow and strengthening our balance sheet. Further, we set another record in the quarter for ICE6 revenue and achieved additional key milestones with the field performance of our new pluggable products. Our results and progress were made against the backdrop of ongoing supply chain challenges, including the impact of elevated costs on our financial results.”

“Our investment thesis is sound, and we remain focused on the things we can control to grow market share and drive results to our target business model. We look forward to closing out 2022 on a strong note and building on our momentum in 2023 as we continue to deliver on our long-term growth and profitability objectives.”

Financial Outlook

Infinera's outlook for the quarter ending December 31, 2022, is as follows:

Revenue is expected to be $435 million +/- $15 million. GAAP gross margin is expected to be 38.0% +/- 150 bps. Non-GAAP gross margin is expected to be 40.0% +/- 150 bps. GAAP operating expenses are expected to be $160 million +/- $2 million. Non-GAAP operating expenses are expected to be $142 million +/- $2 million. GAAP operating margin is expected to be 1.0% +/- 200 bps. Non-GAAP operating margin is expected to be 7.0% +/- 200 bps.