Infinera (INFN) Q4 2023 earnings summary

Executive summary

• Q4 2023 preliminary revenue, gross margin and diluted EPS midpoints were expected above prior outlook midpoints; results remain subject to final review.

• FY2023 was expected to mark a sixth consecutive year of revenue growth, with gross margin approaching 40% and YoY EPS growth.

• Strategic wins in early 2024 and the design-win funnel were cited as support for stronger H2 and a seventh consecutive year of revenue growth with margin and EPS expansion.

Financial highlights

• Q4 preliminary revenue: $435M–$452M, versus prior outlook of $421M–$451M.

• Q4 preliminary GAAP gross margin: 38.0%–40.0%; non-GAAP gross margin: 39.0%–41.0%.

• Q4 preliminary GAAP operating margin: 0.0%–3.0%; non-GAAP operating margin: 5.7%–8.3%.

• Q4 preliminary GAAP diluted EPS: loss of $0.02 to income of $0.04; non-GAAP diluted EPS: $0.07–$0.13.

• Preliminary cash, cash equivalents and restricted cash totaled approximately $174M.

Outlook and guidance

• Q1 2024 revenue expected at $320M–$350M; GAAP gross margin 35.3%–37.4% and non-GAAP gross margin 36.0%–38.0%.

• Q1 GAAP operating expenses expected at $157M–$161M; non-GAAP operating expenses at $143M–$147M.

• Q1 GAAP operating margin expected at (13.5%)–(8.2%); non-GAAP operating margin at (8.5%)–(3.5%).

• Q1 GAAP diluted EPS expected at a loss of $0.25–$0.17; non-GAAP diluted EPS at a loss of $0.18–$0.10.