INFN - SA News Blurb

MKM reports positive Infinera checks ahead of earnings

Jul 17 2015, 19:04 ET | About: Infinera Corporation (INFN) | By: Eric Jhonsa, SA News Editor Contact this editor with comments or a news tip

MKM’s Michael Genovese, ahead of Infinera’s (NASDAQ:INFN) July 22 Q2 report: "According to our checks, 2Q15 was a good quarter overall for new [optical network] footprint builds in Europe and in the U.S. wholesale market. Additionally, there was strong capacity demand from CenturyLink and from Infinera’s top Web 2.0 and Cable MSO customers.

"He also estimates Infinera’s Cloud Xpress metro point-to-point interconnect solution (only recently began shipping) saw Q2 revenue of $10M-$12M, thus yielding 1H15 sales of ~$15M. On its Q1 CC (transcript), Infinera reported having seven invoice customers for Cloud Xpress, and talked up the long-term potential of the data center interconnect market, which is benefiting from cloud traffic growth. "It’s a relatively young market today, few hindered million dollars and it’s forecasted to grow to a few billion dollars over the next several years.

"Both Genovese and Jefferies’ George Notter see Infinera topping its $200M Q2 revenue guidance midpoint - consensus is already at $201.4M. Notter adds he likes how Infinera’s bid for Swedish optical transport hardware vendor Trasmode (provided it succeeds) expands its metro product line, and thinks the company could roll out a 1.2Tbps photonic integrated circuit (PIC) in October. Infinera’s most powerful PIC currently tops out at 500Gbps.