Leading optical transport network developer, Infinera Corp. (INFN - Free Report) reported disappointing financial results in second-quarter of 2017 wherein both the top and bottom line fell below the Zacks Consensus Estimate.
The company reported quarterly GAAP net loss of $42.8 million or a loss of 29 cents per share compared with the year-ago net income of $11.5 million or 8 cents per share. Infinera’s adjusted loss per share of 24 cents was a penny higher than the Zacks Consensus Estimate.
Quarterly total revenue came in at $176.8 million, down 31.7% year over year, missing the Zacks Consensus Estimate of $181.3 million. Segment-wise, product revenues were $143.4 million, down 37% year over year. Services revenues increased 6.9% to nearly $33.5 million. Domestic revenues contributed 63% to the total revenue, while the remaining 37% was generated from international markets.
In the second quarter of 2017, Infinera generated a negative $15 million of cash from operations as opposed to a positive $28.2 million in the prior-year quarter. Free cash flow in the reported quarter was a negative $54.2 million against a positive $4.9 million in the year-ago quarter.
At the end of the second quarter of 2017, Infinera had $257.8 million of cash and cash equivalents and marketable securities compared with $304.3 million at the end of 2016. Total debt at the end of the second quarter of 2017 was $139.1 million compared with $133.6 at the end of 2016.
The company provides digital optical networking systems to telecommunication carriers, cable operators and other service providers worldwide. It faces direct competition from the likes of Extreme Networks Inc. (EXTR - Free Report) , Netgear Inc. (NTGR - Free Report) and Brocade Communications Systems Inc. . All these stocks currently carry a Zacks Rank #3 (Hold) while Infinera has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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