Preliminary Q1 2024 Infinera Corp Earnings Call Transcript
Key Points
- Infinera Corp (INFN) reported strong bookings and unprecedented strategic deal momentum, potentially representing over $1 billion in cumulative multiyear value across strategic accounts.
- The company maintained healthy cash flow generation with free cash flow of $16 million in the quarter, continuing a positive trend from the previous quarter.
- Infinera Corp (INFN) ended Q1 with $192 million in cash and cash equivalents, with no amounts drawn against its $200 million plus ABL, indicating strong liquidity.
- The company announced significant strategic wins, including a new GXI seven based subsea deal with a major hyperscaler potentially worth $100 million to $200 million over three years.
- Infinera Corp (INFN) launched new IC intra-data center solutions that could significantly reduce power per bit by as much as 75% for AI-centric applications, enhancing its competitive edge in the market.
- Q1 revenue of $307 million came in 4% below the outlook range and declined 22% on a year-over-year basis.
- The revenue shortfall in Q1 was attributed to a slower release of book-ship orders and the push-out of shipments, indicating potential operational inefficiencies or market challenges.
- Gross margin in Q1 decreased by 220 basis points year-over-year, primarily due to the higher contribution of lower margin line systems to product mix.
- Operating loss in Q1 was $25.9 million with an operating margin of negative 8.4%, impacted by lower revenue and product mix.
- Infinera Corp (INFN) faces a challenging near-term operating environment as customers continue to work down excess inventory and delay some projects, which could impact financial performance in the upcoming quarters.
Thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Infinera Corporation first quarter earnings conference call. (Operator Instructions) Thank you. I will now turn the conference over to Amitabh Passi, Head of Investor Relations. You may begin your conference.
Thank you, operator, good afternoon. Welcome to the call. We will discuss the preliminary financial results for Infinera's first quarter of fiscal 2024. A copy of the press release issued by Infinera today is available on the Investor Relations section of the website. This call is being recorded and will be available for replay from our website.
Today's call will include financial commentary and metrics based on our preliminary first quarter of fiscal 2024 results. Yesterday, we announced that we currently expect to file our quarterly report on Form 10-Q for the first fiscal quarter, fiscal 2024 on or before May 21, 2024. As a result, and notwithstanding
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