Infinera Corporation (INFN) Bundle
A Brief History of Infinera Corporation
Infinera Corporation, established in 2000, has evolved as a key player in the optical networking industry. The company specializes in providing innovative networking solutions based on its proprietary technology, which has enabled it to deliver high-capacity and long-distance optical transport solutions.
Recent Financial Performance
As of September 28, 2024, Infinera reported a net loss of $124.0 million for the nine-month period, which included significant non-cash charges of $95.3 million. This marked a substantial increase from a net loss of $38.1 million during the same period in 2023. The company recorded a net cash provided by operating activities of $8.6 million in 2024, a notable recovery compared to the $30.1 million used in 2023.
Balance Sheet Overview
As of September 28, 2024, the balance sheet reflected a total cash position of $115.6 million, down from $173.9 million at the end of 2023. Total assets amounted to $1.2 billion, with total liabilities reaching $1.1 billion.
| Balance Sheet Item | September 28, 2024 | December 30, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $115.1 million | $172.5 million |
| Accounts Receivable | $162.4 million | $254.8 million |
| Inventory | $356.1 million | $431.2 million |
| Total Assets | $1.2 billion | $1.3 billion |
| Total Liabilities | $1.1 billion | $1.2 billion |
Debt Obligations
Infinera's debt portfolio includes significant convertible senior notes, with total debt reported at $738.3 million as of September 28, 2024. The company repaid $18.7 million in principal on its 2024 Notes upon maturity on September 1, 2024.
Operational Highlights
The company has made strides in reducing operational costs, implementing a 2024 Restructuring Plan that incurred costs of $3.2 million. This initiative aims to streamline operations and improve profitability.
Stock-Based Compensation
As of September 28, 2024, Infinera's stock-based compensation expense totaled $38.7 million for the nine-month period, down from $49.4 million in the previous year. The company has unrecognized compensation costs of $73.5 million related to its stock-based compensation plans.
| Stock-Based Compensation | September 28, 2024 | September 30, 2023 |
|---|---|---|
| RSUs Granted | $12.4 million | $13.7 million |
| PSUs Granted | $1.9 million | $1.3 million |
| Total Expense | $38.7 million | $49.4 million |
Future Outlook
Looking forward, Infinera anticipates a challenging yet promising landscape as it continues to innovate in optical networking technology. The company's backlog as of September 28, 2024, stood at $580.6 million, indicating robust demand for its products and services.
A Who Owns Infinera Corporation (INFN)
Major Shareholders
As of 2024, Infinera Corporation (INFN) has several significant shareholders. The following table summarizes the ownership structure:
| Shareholder | Ownership Percentage (%) | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.5 | 24,753,000 |
| The Vanguard Group, Inc. | 9.8 | 22,972,000 |
| Dimensional Fund Advisors LP | 7.1 | 16,731,000 |
| Wellington Management Group LLP | 5.6 | 13,188,000 |
| Other Institutional Investors | 30.0 | 70,000,000 |
| Insider Holdings | 5.0 | 11,500,000 |
| Public Float | 32.0 | 74,000,000 |
Recent Changes in Ownership
In the first quarter of 2024, there were notable changes in the shareholder structure, particularly with institutional investors increasing their stakes following the merger announcement with Nokia. BlackRock increased its holding by 1.5%, while Vanguard's stake remained stable. Insider ownership has also seen minor fluctuations due to stock-based compensation plans being executed.
Merger with Nokia
On June 27, 2024, Infinera announced a merger agreement with Nokia Corporation, which is expected to significantly impact ownership distribution. Upon completion of the merger, existing Infinera shareholders will receive cash consideration of $6.65 per share, leading to a potential shift in the ownership landscape as Nokia becomes the primary shareholder post-merger.
Stock Performance and Market Capitalization
As of September 28, 2024, Infinera's stock price was approximately $6.50, reflecting a market capitalization of around $1.54 billion. This valuation represents a decrease from a high of $9.00 earlier in the year, attributed to market volatility and operational challenges.
| Date | Stock Price ($) | Market Capitalization ($ Billion) |
|---|---|---|
| March 31, 2024 | 9.00 | 2.10 |
| June 30, 2024 | 7.50 | 1.80 |
| September 28, 2024 | 6.50 | 1.54 |
Institutional Investor Trends
Institutional investors have shown a keen interest in Infinera, with approximately 62% of the company’s shares held by institutions. This trend indicates strong institutional confidence, especially in light of the strategic merger with Nokia, expected to enhance Infinera's market position and operational capabilities.
Insider Transactions
Recent insider transactions have included stock options exercised by executives, contributing to minor fluctuations in insider ownership levels. The current insider ownership stands at 5%, reflecting a commitment from management to align with shareholder interests.
Conclusion of Ownership Analysis
The ownership structure of Infinera Corporation as of 2024 reflects significant institutional investment and a pivotal merger with Nokia, poised to reshape the company's future. The evolving landscape of ownership will be closely monitored as the merger progresses.
Infinera Corporation (INFN) Mission Statement
The mission statement of Infinera Corporation emphasizes the company’s commitment to delivering innovative networking solutions that enable communications service providers and enterprises to build and operate their networks more efficiently. Infinera aims to drive the transformation of the optical networking industry through its advanced technology and solutions, which are designed to meet the evolving needs of customers in a digital-first world.
Financial Performance Overview
As of September 28, 2024, Infinera reported a total revenue of $1,004.1 million for the nine months ended, reflecting a decrease of 13% compared to the previous year. The breakdown of revenue sources is as follows:
| Revenue Source | Amount (in thousands) | % of Total Revenue |
|---|---|---|
| Product Revenue | $778,008 | 77.5% |
| Service Revenue | $226,051 | 22.5% |
| Total Revenue | $1,004,059 | 100% |
Net Loss and Comprehensive Income
Infinera experienced a net loss of $123.995 million for the nine months ended September 28, 2024, compared to a loss of $38.086 million for the same period in the previous year. The comprehensive loss for the same period was reported as $119.556 million.
Stockholder Equity
As of September 28, 2024, the stockholder equity of Infinera stood at $133.846 million, which reflects a decrease from $216.591 million as of December 30, 2023. The components of stockholder equity are detailed below:
| Component | Amount (in thousands) |
|---|---|
| Common Stock | $236 |
| Additional Paid-in Capital | $2,012,820 |
| Accumulated Other Comprehensive Loss | $(30,409) |
| Accumulated Deficit | $(1,848,801) |
| Total Stockholders' Equity | $133,846 |
Debt and Financial Obligations
As of September 28, 2024, Infinera had total long-term debt of $667.205 million. The company’s financial obligations include:
| Debt Type | Amount (in thousands) |
|---|---|
| 2027 Notes | $200,000 |
| 2028 Notes | $473,800 |
| Total Long-term Debt | $667,205 |
Operational Highlights
Infinera's operational performance included a gross profit of $387.249 million with a gross margin of 39% for the nine months ended September 28, 2024. The company's operational expenses were reported as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Research and Development | $225,223 |
| Sales and Marketing | $118,357 |
| General and Administrative | $101,114 |
| Total Operating Expenses | $471,039 |
Recent Developments
In June 2024, Infinera announced a merger agreement with Nokia Corporation, which aims to enhance its market position and technological capabilities. The merger is expected to close in the first half of 2025, pending regulatory approvals.
How Infinera Corporation (INFN) Works
Business Overview
Infinera Corporation (ticker: INFN) is a provider of networking equipment, software, and services for telecommunications service providers and enterprises. The company primarily focuses on optical transport networking equipment, which facilitates high-speed data transmission over fiber optic networks.
Financial Performance
As of September 28, 2024, Infinera reported total revenue of $1,004.1 million, a decrease of 13% from $1,160.7 million in the corresponding period in 2023. The revenue breakdown is as follows:
| Revenue Source | September 28, 2024 | September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Product | $778.0 million | $931.1 million | $(153.0 million) | (16%) |
| Services | $226.1 million | $229.6 million | $(3.6 million) | (2%) |
| Total Revenue | $1,004.1 million | $1,160.7 million | $(156.6 million) | (13%) |
Revenue by Geography
Infinera's revenue is derived from both domestic and international markets. The following table summarizes revenue by geography for the nine months ended September 28, 2024:
| Geography | Revenue ($ million) | % of Total Revenue | Change ($ million) | Change (%) |
|---|---|---|---|---|
| Domestic | $577.9 million | 58% | $(105.9 million) | (15%) |
| International | $426.1 million | 42% | $(50.7 million) | (11%) |
| Total Revenue | $1,004.1 million | 100% | $(156.6 million) | (13%) |
Cost Structure
The total cost of revenue for the nine months ended September 28, 2024, was $616.8 million, leading to a gross profit of $387.2 million and a gross margin of 39%. The cost breakdown is shown below:
| Cost Component | Amount ($ million) | % of Total Revenue |
|---|---|---|
| Cost of Product | $494.2 million | 49% |
| Cost of Services | $121.9 million | 12% |
| Total Cost of Revenue | $616.8 million | 61% |
Operating Expenses
Operating expenses for the nine months ended September 28, 2024, totaled $471.0 million, representing 47% of total revenue. The breakdown of operating expenses is as follows:
| Expense Type | Amount ($ million) | % of Total Revenue |
|---|---|---|
| Research and Development | $225.2 million | 22% |
| Sales and Marketing | $118.4 million | 12% |
| General and Administrative | $101.1 million | 10% |
| Total Operating Expenses | $471.0 million | 47% |
Net Loss
For the nine months ended September 28, 2024, Infinera reported a net loss of $124.0 million, compared to a net loss of $38.1 million in the same period in 2023. This resulted in a net loss per share of $(0.53).
Cash Flow and Liquidity
Infinera's cash and cash equivalents as of September 28, 2024, were $115.1 million, down from $172.5 million at the end of December 2023. The cash flow from operating activities for the nine months ended September 28, 2024, was $8.6 million.
Debt Obligations
As of September 28, 2024, Infinera had long-term debt obligations totaling $667.2 million, which includes $738.3 million in convertible senior notes at fair value.
How Infinera Corporation (INFN) Makes Money
Revenue Streams
Infinera Corporation generates revenue primarily through two main segments: product sales and services. As of September 28, 2024, the breakdown of revenue is as follows:
| Segment | Three Months Ended September 28, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Product | $276,214 | $316,613 | (13%) |
| Services | $78,184 | $75,756 | 3% |
| Total Revenue | $354,398 | $392,369 | (10%) |
Geographical Revenue Distribution
The company's revenue is also categorized by geographical regions. For the nine months ended September 28, 2024, the revenue distribution is as follows:
| Region | Revenue (in thousands) | % of Total Revenue |
|---|---|---|
| Domestic (U.S.) | $577,923 | 58% |
| International | $426,136 | 42% |
| Total Revenue | $1,004,059 | 100% |
Cost Structure
Infinera's cost of revenue consists of product and service costs. The cost breakdown for the nine months ended September 28, 2024, is as follows:
| Cost Type | Amount (in thousands) | % of Total Revenue |
|---|---|---|
| Cost of Product | $494,248 | 49% |
| Cost of Services | $121,910 | 12% |
| Total Cost of Revenue | $616,810 | 61% |
Gross Profit and Margins
For the nine months ended September 28, 2024, Infinera reported a gross profit of $387,249, with a gross margin of 39%. This represents a decrease from the previous year's gross profit of $448,010, also with a gross margin of 39%.
Operating Expenses
Operating expenses for the nine months ended September 28, 2024, are detailed below:
| Expense Type | Amount (in thousands) | % of Total Revenue |
|---|---|---|
| Research and Development | $225,223 | 22% |
| Sales and Marketing | $118,357 | 12% |
| General and Administrative | $101,114 | 10% |
| Total Operating Expenses | $471,039 | 47% |
Net Loss and Financial Position
Infinera reported a net loss of $123,995 for the nine months ended September 28, 2024. This is an increase from the net loss of $38,086 in the same period of the previous year. The accumulated deficit as of September 28, 2024, stands at $1,848,801.
Debt and Financing
As of September 28, 2024, Infinera had outstanding borrowings of $10 million under its asset-based revolving credit facility. The company also reported fair value for its convertible senior notes at approximately $738,331.
Cash Flow and Liquidity
Net cash provided by operating activities during the nine months ended September 28, 2024, was $8.6 million, compared to a net cash used in operating activities of $30.1 million for the same period in 2023.
Infinera Corporation (INFN) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Infinera Corporation (INFN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Infinera Corporation (INFN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Infinera Corporation (INFN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.