Infinera has updated their Investor’s Presentation to include additional details from the Transmode acquisition:
http://investors.infinera.com/phx.corporate-ir.net/External…
Some interesting observations of note:
Slide 9: Sliceable 500G (ePIC-500) and Optimized 100G (oPIC-100), now adapted for the Metro. Take note of the two images and keep them in mind for notes on slide 21, below.
Slide 13: In June of 2012 Infinera introduced the DTN-X, leapfrogging the competition in the 100G Long Haul market. Since that time quarterly trailing 12 month revenue grew 2.6x greater than their closest competitor, Ciena
Slide 16: Of interest are the pictures of the two datacenters, chosen by example. One is Facebook in Lulea, Sweden. Facebook is an officially recognized customer. The other is Microsoft in West Des Moines, Iowa. Microsoft is not officially recognized, but their status as a customer was “revealed” during a recent investor’s conference at Jeffries. This perhaps provides further confirmation of their “unofficial” status in an innocuous way.
Slide 18: All about Transmode. 50+% margins, positive cash flow, no debt, $40M in cash (to add to Infinera’s stockpile of $310M), 600+ customers, of which 75% are from EMEA. The EMEA market is a nice complement to Infinera’s market depth in North America and Asia.
Slide 19: Further confirmation that Non-GAAP EPS are expected to be accretive from the combined companies
Slide 21: This slide shows the product lines under each of the markets it addresses. Note that in Metro, “Transmode” is depicted in lieu of a graphic for each of the Transmode products. Also note the ‘2015’ bubble to the right of the Transmode logo. This bubble is a placeholder for a product yet to be announced (in 2015), and, it is inferred this product will include the oPIC-100 and ePIC-500 PIC technology seeing the same images from slide 9 depicted below it.
Slide 22: Further description of each solution in the portfolio and the Total Addressable Market. Long Haul has DTN-X. Metro Cloud has Cloud Xpress. Metro Aggregation has “TRMO+INFN Platform: 2015”. Another reference to the 2015 product to be announced.
We’ve heard that Infinera had a product in the works to address the metro aggregation space, and were prepared to launch it regardless of whether or not the Transmode acquisition went through.
Finally, we have confirmation of this 2015 product to be announced. It will coincide with the 2015 Insight Infinera event coming up on October 6, 2015:
http://go.infinera.com/2015-Insight-Infinera_Webcast-Registr…
Please join us for Insight Infinera 2015, a live webcast on October 6, 2015. Listen to Infinera executives and leading network operators as they share their insight on network transformation, the evolution of metro networks from 10G to 100G and the increasing importance of datacenter interconnect in Cloud architectures.
Highlights of the event include:
o Tom Fallon, CEO of Infinera, discussing Infinera’s business performance and strategy
o Dr. Dave Welch, co-founder and president of Infinera, addressing how Intelligent Transport Networks are transforming and enabling massive growth in traffic from Cloud services
o Karl Thedéen, managing director of Infinera’s Metro Business Group, unveiling the Infinera metro portfolio
0 Panel featuring executives from leading network operators discussing their challenges and network transformation imperatives
The last time Infinera hosted this (annual) event, Stu Elby SVP of their Data Center division introduced their Cloud Xpress product. Stu was formerly from Verizon and joined the team just one month prior after his former company went with an Alcatel-Lucent solution instead of Infinera’s. The event was on September 18, 2014. About one month later, on October 23, 2014 Infinera closed up over 30% on 10 times the volume after reporting their 3Q2014 results. Results blew past consensus.
Infinera is expected to report around October 20, this time a few weeks closer to the Insight Infinera event than last time. Whatever short term blips we’re experiencing right now (based on anxiety instead of news), very soon we’ll be getting official news to know what direction we’re heading. Three weeks until the first news day. Then two more for the official one.
Best,
–Kevin
Long Infinera
