Infinera Corporation Reports Fourth Quarter and Fiscal Year 2012 Financial Results

Infinera Corporation Reports Fourth Quarter and Fiscal Year 2012 Financial 
Results 
SUNNYVALE, CA -- (Marketwire) -- 02/05/13 --  Infinera Corporation
(NASDAQ: INFN), a leading provider of digital optical networks, today
released financial results for the fourth quarter and fiscal year
ended December 29, 2012. 
GAAP revenues for the quarter were $128.1 million compared to $112.2
million in the third quarter of 2012 and $112.0 million in the fourth
quarter of 2011. 
GAAP gross margins for the quarter were 34% compared to 37% in the
third quarter of 2012 and 40% in the fourth quarter of 2011. GAAP net
loss for the quarter was $(16.1) million, or $(0.14) per share,
compared to net loss of $(19.1) million, or $(0.17) per share, in the
third quarter of 2012 and a net loss of $(19.4) million, or $(0.18)
per share, in the fourth quarter of 2011. 
Non-GAAP gross margins for the quarter were 36% compared to 39% in
the third quarter of 2012 and 42% in the fourth quarter of 2011.
Non-GAAP net loss for the quarter was $(6.0) million, or $(0.05) per
diluted share, compared to net loss of $(7.8) million, or $(0.07) per
diluted share in the third quarter of 2012 and net loss of $(6.7)
million, or $(0.06) per diluted share, in the fourth quarter of 2011.
These Non-GAAP measures exclude non-cash stock-based compensation
expenses and restructuring and other related costs. 
GAAP revenues for the year were $438.4 million compared to $404.9
million in 2011. 
GAAP gross margins for the year were 36% compared to 41% in 2011.
GAAP net loss for the year was $(85.3) million, or $(0.77) per share
compared to $(81.7) million, or $(0.78) per share in 2011. 
Non-GAAP gross margins for the year were 38% compared to 43% in 2011.
Non-GAAP net loss for the year was $(43.5) million or $(0.38) per
diluted share in 2012, compared to net loss of $(31.7) million or
$(0.29) per diluted share in 2011. These Non-GAAP measures exclude
non-cash stock-based compensation expenses and restructuring and
other related costs. 
Management Commentary 
"Our fourth quarter results reflected solid execution of our growth
strategy and represented a strong finish to a productive year for
Infinera," said Tom Fallon, president and chief executive officer.
"Our DTN-X continues to gain traction and 
to date, we have purchase
commitments from 22 customers, including seven new to Infinera. These
customers represent a broad cross section of our market segments.
Revenue from the DTN-X platform continues to ramp." 
"During the fourth quarter, we were pleased to announce our first
domestic Tier 1 backbone deployment with CenturyLink. We have also
successfully completed the OSMINE certification process, another key
milestone in demonstrating our US Tier 1 readiness. Our ability to
fully service global Tier 1 customers essentially doubles our
addressable market. We also added four new DTN customers during the
quarter for a total of 111 customers worldwide," continued Mr.
Fallon. 
"We are optimistic about the outlook for 2013. Interest in our unique
100G converged DWDM/OTN switching solution remains strong, resulting
in significant trial activity, which has helped us build a strong
pipeline into 2013. A strong focus on winning footprint and gaining
market share, balanced with prudent financial management remain our
priorities for 2013," Mr. Fallon concluded. 
Conference Call Information: 
Infinera will host a conference call for analysts and investors to
discuss its fourth quarter and fiscal year 2012 results and first
quarter outlook today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific
Time). A live webcast of the conference call will also be accessible
from the "Investor Relations" section of the company's website at
www.infinera.com. Following the webcast, an archived version will be
available on the website for 90 days. To hear the replay, parties in
the United States and Canada should call 1-888-566-0401.
International parties can access the replay at 1-203-369-3040. 
About Infinera 
Infinera provides Digital Optical Networking systems to
telecommunications carriers worldwide. Infinera's systems are unique
in their use of a breakthrough semiconductor technology: the photonic
integrated circuit (PIC). Infinera's systems and PIC technology are
designed to provide customers with simpler and more flexible
engineering and operations, faster time-to-service, and the ability
to rapidly deliver differentiated services without reengineering
their optical infrastructure. For more information, please visit
www.infinera.com. 
Forward-Looking Statements 
This press release contains forward-looking statements, including
statements regarding our expectations for customer interest in,
adoption of,
 and revenue and purchase commitments related to our
DTN-X product, our ability to fully service Tier 1 customers and the
addressable market related to Tier 1 customers, and customer interest
in our 100G converged DWDM/OTN switching solution, and our building
of a strong pipeline for 2013. These forward-looking statements
involve risks and uncertainties, as well as assumptions that, if they
do not fully materialize or prove incorrect, could cause our results
to differ materially from those expressed or implied by such
forward-looking statements. The risks and uncertainties that could
cause our results to differ materially from those expressed or
implied by such forward-looking statements include unexpected delays
in the development, production or availability of our products;
decisions by customers to delay orders of the product; changes in the
marketplace that would affect customer demand for the product, as
well as our general ability to react to trends and challenges in our
business and the markets in which we operate; our ability to
anticipate market needs and develop new or enhanced products to meet
those needs; the adoption rate of our products; our ability to
establish and maintain successful relationships with our customers;
our ability to reduce customer concentration; our ability to compete
in our industry; fluctuations in demand, sales cycles and prices for
our products and services; our abili
ty to operate profitably;
aggressive business tactics by our competitors; our reliance on
single-source suppliers; shortages or price fluctuations in our
supply chain; our ability to protect our intellectual property
rights; and general, political, economic and market conditions and
events. Further information about these risks and uncertainties, and
other risks and uncertainties that affect our business, are contained
in the risk factors section and other sections of our annual report
on Form 10-K filed with the Securities Exchange Commission on March
6, 2012, as well as subsequent reports filed with or furnished to the
SEC. These reports are available on our website at www.infinera.com
and the SEC's website at www.sec.gov. We assume no obligation to, and
do not currently intend to, update any such forward-looking
statements. 
Use of Non-GAAP Financial Information 
In addition to disclosing financial measures prepared in accordance
with U.S. Generally Accepted Accounting Principles (GAAP), this press
release and the accompanying tables contain certain non-GAAP measures
that exclude non-cash stock-based compensation expenses. We believe
these adjustments are appropriate to enhance an overall understanding
of our underlying financial performance and also our prospects for
the future and are considered by management for the purpose of making
operational decisions. In addition, these results are the primary
indicators management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for net income (loss), basic and diluted net income (loss)
per share, or gross margin prepared in accordance with GAAP. Non-GAAP
financial measures are not based on a comprehensive set of accounting
rules or principles and are subject to limitations. For a description
of these non-GAAP financial measures and a reconciliation to the most
directly comparable GAAP financial measures, please see the section
titled, "GAAP to Non-GAAP Reconciliations." We anticipate disclosing
forward-looking non-GAAP information in our conference call to
discuss our fourth quarter results, including an estimate of non-GAAP
earnings for the first quarter of 2013 that excludes non-cash
stock-based compensation expenses. 
A copy of this press release can be found on the investor relations
page of Infinera's website at www.infinera.com. 
Infinera Corporation and the Infinera logo are trademarks or
registered trademarks of Infinera Corporation. All other trademarks
used or mentioned herein belong to their respective owners.  


 
                                                                            
                                                                            
                                                                            
Infinera Corporation                                                        
GAAP Condensed Consolidated Statements of Operations                        
(In thousands, except share amounts)                                        
(Unaudited)                                                                 
                         Three Months Ended          Twelve Months Ended    
                     --------------------------  -------------------------- 
                     December 29,  December 31,  December 29,  December 31, 
                         2012          2011          2012          2011     
                     ------------  ------------  ------------  ------------ 
Revenue:                                                                    
  Product            $    109,051  $     93,025  $    378,138  $    349,468 
  Ratable product                                                           
   and related                                                              
   support and                                                              
   services                   393           593         1,897         3,176 
  Services                 18,620        18,391        58,402        52,233 
                     ------------  ------------  ------------  ------------ 
    Total revenue         128,064       112,009       438,437       404,877 
                                                                            
 Cost of revenue                                                            
 (1):                                                                       
  Cost of product          77,023        61,103       258,874       219,710 
  Cost of ratable                                                           
   product and                                                              
   related support                                                          
   and services               104           250           563         1,096 
  Cost of services          7,669         5,972        21,431        18,580 
                     ------------  ------------  ------------  ------------ 
    Total cost of                                                           
     revenue               84,796        67,325       280,868       239,386 
                                                                            
Gross profit               43,268        44,684       157,569       165,491 
                                                                            
Operating expenses                                                          
 (1):                                                                       
  Research and                                                              
   development             26,660        31,218       117,233       127,120 
  Sales and                                                                 
   marketing               20,558        18,336        75,862        64,773 
  General and                                                               
   administrative          11,563        14,119        47,475        54,375 
  Restructuring and                                                         
   other costs                                                              
   (credit)                     -          (129)            -          (129)
                     ------------  ------------  ------------  ------------ 
    Total operating                                                         
     expenses              58,781        63,544       240,570       246,139 
                                                                            
Loss from operations      (15,513)      (18,860)      (83,001)      (80,648)
                                                                            
Other income                                                                
 (expense), net:                                                            
  Interest income             233           272           911         1,014 
  Other gain (loss),                                                        
   net                       (158)         (216)       (1,050)         (419)
                     ------------  ------------  ------------  ------------ 
    Total other                                                             
     income                                                                 
     (expense), net            75            56          (139)          595 
                                                                            
Loss before income                                                          
 taxes                    (15,438)      (18,804)      (83,140)      (80,053)
Provision for income                                                        
 taxes                        650           546         2,190         1,691 
                     ------------  ------------  ------------  ------------ 
Net loss             $    (16,088) $    (19,350) $    (85,330) $    (81,744)
                     ============  ============  ============  ============ 
                                                                            
Net loss per common                                                         
 share, basic and                                                           
 diluted             $      (0.14) $      (0.18) $      (0.77) $      (0.78)
                     ============  ============  ============  ============ 
                                                                            
Weighted average                                                            
 shares used in                                                             
 computing basic and                                                        
 diluted net loss                                                           
 per common share         112,31
1       106,893       110,739       105,432 
                     ============  ============  ============  ============ 
                                                                            
(1) The following table summarizes the effects of stock-based compensation  
    related to employees and non-employees for the three and twelve months  
    ended December 29, 2012 and December 31, 2011:                          
                                                                            
                             Three Months Ended       Twelve Months Ended   
                         ------------------------- -------------------------
                         December 29, December 31, December 29, December 31,
                             2012         2011         2012         2011    
                         ------------ ------------ ------------ ------------
Cost of revenue          $        735 $        710 $      2,710 $      2,923
Research and development        2,852        3,915       13,306       14,990
Sales and marketing             2,802        2,317       10,450        8,818
General and                                                                 
 administration                 1,797        4,481        9,529       18,502
                         ------------ ------------ ------------ ------------
                                8,186       11,423       35,995       45,233
Cost of revenue -                                                           
 amortization from                                                          
 balance sheet*                 1,949        1,307        5,824        4,924
                         ------------ ------------ ------------ ------------
Total stock-based                                                           
 compensation expense    $     10,135 $     12,730 $     41,819 $     50,157
                         ============ ============ ============ ============
                                                                            
* Stock-based compensation expense deferred to inventory and deferred       
inventory costs in prior periods and recognized in the current period.      
                                                                            
                                                                            
                                                                            
Infinera Corporation                                                        
GAAP to Non-GAAP Reconciliations                                            
(In thousands, except per share data)                                       
(Unaudited)                                                                 
                                                                            
                            Three Months Ended          Twelve Months Ended 
                     --------------------------------  -------------------- 
                      December   September   December   December   December 
                      29, 2012   29, 2012    31, 2011   29, 2012   31, 2011 
                     ---------  ----------  ---------  ---------  --------- 
Reconciliation of                                                           
 Gross Profit:                                                              
U.S. GAAP as                                                                
 reported            $  43,268  $   41,500  $  44,684  $ 157,569  $ 165,491 
Stock-based                                                                 
 compensation(1)         2,684       2,389      2,017      8,534      7,847 
                     ---------  ----------  ---------  ---------  --------- 
Non-GAAP as adjusted $  45,952  $   43,889  $  46,701  $ 166,103  $ 173,338 
                     =========  ==========  =========  =========  ========= 
                                                                            
Reconciliation of                                                           
 Gross Margin:                                                              
U.S. GAAP as                                                                
 reported                   34%         37%        40%        36%        41%
Stock-ba
sed                                                                 
 compensation(1)             2%          2%         2%         2%         2%
                     ---------  ----------  ---------  ---------  --------- 
Non-GAAP as adjusted        36%         39%        42%        38%        43%
                     =========  ==========  =========  =========  ========= 
                                                                            
Reconciliation of                                                           
 Loss                                                                       
from Operations:                                                            
U.S. GAAP as                                                                
 reported            $ (15,513) $  (18,205) $ (18,860) $ (83,001) $ (80,648)
Restructuring and                                                           
 other related costs                                                        
 (credit)(2)                 -           -       (129)         -       (129)
Stock-based                                                                 
 compensation(1)        10,135      11,317     12,730     41,819     50,157 
                     ---------  ----------  ---------  ---------  --------- 
Non-GAAP as adjusted $  (5,378) $   (6,888) $  (6,259) $ (41,182) $ (30,620)
                     =========  ==========  =========  =========  ========= 
                                                                            
Reconciliation of                                                           
 Net Loss:                                                                  
U.S. GAAP as                                                                
 reported            $ (16,088) $  (19,081) $ (19,350) $ (85,330) $ (81,744)
Restructuring and                                                           
 other related costs                                                        
 (credit)(2)                 -           -       (129)         -       (129)
Stock-based                                                                 
 compensation(1)        10,135      11,317     12,730     41,819     50,157 
                     ---------  ----------  ---------  ---------  --------- 
Non-GAAP as adjusted $  (5,953) $   (7,764) $  (6,749) $ (43,511) $ (31,716)
                     =========  ==========  =========  =========  ========= 
                                                                            
Reconciliation of                                                           
 Net Loss per Common                                                        
Share - Basic:                                                              
U.S. GAAP as                                                                
 reported            $   (0.14) $    (0.17) $   (0.18) $   (0.77) $   (0.78)
                     =========  ==========  =========  =========  ========= 
Non-GAAP as adjusted $   (0.05) $    (0.07) $   (0.06) $   (0.39) $   (0.30)
                     =========  ==========  =========  =========  ========= 
                                                                            
Reconciliation of                                                           
 Net Loss per                                                               
 CommonShare -                                                              
 Diluted:                                                                   
U.S. GAAP as                                                                
 reported            $   (0.14) $    (0.17) $   (0.18) $   (0.77) $   (0.78)
                     =========  ==========  =========  =========  ========= 
Non-GAAP as                                                                 
 adjusted(3)         $   (0.05) $    (0.07) $   (0.06) $   (0.38) $   (0.29)
                     =========  ==========  =========  =========  ========= 
                                                                            
 
Weighted average                                                            
 shares used in                                                             
 computing net loss                                                         
 per common share -                                                         
 U.S. GAAP:                                                                 
Basic                  112,311     111,579    106,893    110,739    105,432 
                     =========  ==========  =========  =========  ========= 
Diluted                112,311     111,579    106,893    110,739    105,432 
                     =========  ==========  =========  =========  ========= 
                                                                            
Weighted average                                                            
 shares used in                                                             
 computing net loss                                                         
 per common share -                                                         
 Non-GAAP:                                                                  
Basic                  112,311     111,579    106,893    110,739    105,432 
                     =========  ==========  =========  =========  ========= 
Diluted(3)             114,115     113,443    110,018    113,124    108,770 
                     =========  ==========  =========  =========  ========= 
                                                                            
                                                                            
(1) Stock-based compensation expense is calculated in accordance with the   
    fair value recognition provisions of Financial Accounting Standards     
    Board Accounting Standards Codification (ASC) Topic 718, Compensation-  
    Stock Compensation effective January 1, 2006. The following table       
    summarizes the effects of stock-based compensation related to employees 
    and non-employees:                                                      
                                                                            
                             Three Months Ended         Twelve Months Ended 
                      -------------------------------- ---------------------
                       December   September  December   December   December 
                          29,        29,        31,        29,        31,   
                         2012       2012       2011       2012       2011   
                      ---------- ---------- ---------- ---------- ----------
Cost of revenue       $      735 $      683 $      710 $    2,710 $    2,923
Research and                                                                
 development               2,852      3,439      3,915     13,306     14,990
Sales and marketing        2,802      2,685      2,317     10,450      8,818
General and                                                                 
 administration            1,797      2,804      4,481      9,529     18,502
                      ---------- ---------- ---------- ---------- ----------
                           8,186      9,611     11,423     35,995     45,233
Cost of revenue -                                                           
 amortization from                                                          
 balance sheet*            1,949      1,706      1,307      5,824      4,924
                      ---------- ---------- ---------- ---------- ----------
Total stock-based                                                           
 compensation expense $   10,135 $   11,317 $   12,730 $   41,819 $   50,157
                      ========== ========== ========== ========== ==========
                                                                            
* Stock-based compensation expense deferred to inventory and deferred       
 inventory costs in prior periods and recognized in the current period.     
                                                                            
(2) Adjustment amount represents equipment and facility-related creidts     
    associated with restructuring recorded in relation to the closure of our
    Maryland FAB announced on July 21, 2009. These amounts have been        
    adjusted in arriving at our non-GAAP results as they are non-recurring  
    in nature and the adjusted numbers provide a better indication of our   
    underlying business performance.                                        
                                                                            
(3) Diluted shares used to calculate net loss per share on a non-GAAP basis 
    provided for informational purposes only.                               
                                                                            
                                                                            
                                                                            
Infinera Corporation                                                        
Condensed Consolidated Balance Sheets                                       
(In thousands, except par values)                                           
(Unaudited)                                                                 
                                                                            
                                                 December 29,  December 31, 
                                                     2012          2011     
                                                 ------------  ------------ 
ASSETS                                                                      
                                                                            
Current assets:                                                             
  Cash and cash equivalents                      $    104,666  $     94,458 
  Short-term investments                               76,146       101,296 
  Accounts receivable, net of allowance for                                 
   doubtful accounts of $94 in 2012 and $0 in                               
   2011                                               107,039        80,616 
  Other receivables                                     2,909         1,346 
  Inventory                                           127,809        88,996 
  Deferred inventory costs                              1,029         5,987 
  Prepaid expenses and other current assets             9,899        10,532 
                                                 ------------  ------------ 
      Total current assets                            429,497       383,231 
                                                                            
  Property, plant and equi
pment, net                   80,343        76,753 
  Deferred inventory costs, non-current                   100         1,020 
  Long-term investments                                 2,874        54,315 
  Cost-method investment                                9,000         9,000 
  Long-term restricted cash                             3,868         3,047 
  Deferred tax asset                                      805           822 
  Other non-current assets                              1,683         3,516 
                                                 ------------  ------------ 
      Total assets                               $    528,170  $    531,704 
                                                 ============  ============ 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
Current liabilities:                                                        
    Accounts payable                             $     61,428  $     48,838 
    Accrued expenses                                   25,483        22,421 
    Accrued compensation and related benefits          22,325        18,966 
    Accrued warranty                                    7,262         5,692 
    Deferred revenue                                   26,744        22,781 
    Deferred tax liability                                805           767 
                                                 ------------  ------------ 
      Total current liabilities                       144,047       119,465 
                                                                            
    Accrued warranty, non-current                       9,220         7,173 
    Deferred revenue, non-current                       3,210         3,410 
    Other long-term liabilities                        15,557        13,853 
                                                                            
Commitments and contingencies                                               
                                                                            
Stockholders' equity:                                                       
    Preferred stock, $0.001 par value Authorized                            
     shares - 25,000 and no shares issued and                               
     outstanding                                            -             - 
    Common stock, $0.001 par value Issued and                               
     outstanding shares - 112,461 as of December                            
     29, 2012 and 106,976 as of December 31,                                
     2011                                                 112           107 
    Additional paid-in capital                        930,618       876,927 
    Accumulated other comprehensive loss               (2,228)       (2,195)
    Accumulated deficit                              (572,366)     (487,036)
                                                 ------------  ------------ 
    Total stockholders' equity                        356,136       387,803 
                                                 ------------  ------------ 
      Total liabilities and stockholders' equity $    528,170  $    531,704 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
Infinera Corporation                                                        
Condensed Consolidated Statements of Cash Flows                             
(In thousands)                                                              
(Unaudited)                                                                 
                                                                            
                                                     Twelve Months Ended    
                                                 -------------------------- 
                                                 December 29,  December 31, 
                                                     2012          2011     
                                                 ------------  ------------ 
Cash Flows from Operating Activities:                                       
Net loss                                         $    (85,330) $    (81,744)
Adjustments to reconcile net loss to net cash                               
 provided by operating activities:                                          
  Depreciation and amortization                        23,661        17,859 
  Provision for doubtful accounts                          94             - 
  Provision for other receivables                           -           563 
  Non-cash restructuring and other costs                                    
   (credit)                                                 -          (129)
  Amortization of premium on investments                2,068         4,215 
  Stock-based compensation expense                     41,819        50,157 
  Non-cash tax benefit                                     (7)          (95)
  Other gain                                             (475)         (335)
  Changes in assets and liabilities:                                        
    Accounts receivable                               (26,517)       (4,686)
    Other receivables                                  (1,894)        3,440 
    Inventories, net                                  (40,623)       (6,007)
    Prepaid expenses and other assets                   2,293        12,695 
    Deferred inventory costs                            5,741         1,999 
    Accounts payable                                   15,410         9,342 
    Accrued liabilities and other expenses              6,915       (10,282)
    Deferred revenue                                    3,763          (401)
    Accrued warranty                                    3,616         1,444 
                                                 ------------  ------------ 
      Net cash used in operating activities           (49,466)       (1,965)
                                                                            
Cash Flows from Investing Activities:                                       
  Purchase of available-for-sale investments          (54,150)     (273,334)
  Purchase of cost-method investment                        -        (4,500)
  Proceeds from sale of available-for-sale                                  
   investments                                         11,584         4,072 
  Proceeds from maturities and calls of                                     
   investments                                        117,605       287,781 
  Proceeds from disposal of assets                          1           262 
  Purchase of property and equipment                  (25,395)      (39,382)
  Advance to secure manufacturing capacity                  -        (1,500)
  Reimbursement of manufacturing capacity                                   
   advance                                                 50           450 
  Change in restricted cash                              (827)          983 
                                                 ------------  ------------ 
      Net cash provided by (used in) investing                              
       activities                                      48,868       (25,168)
                                                                            
Cash Flows from Financing Activities:                                       
  Proceeds from issuance of common stock               11,580        10,023 
  Repurchase of common stock                             (882)       (1,248)
  Payments for purchase of assets under                                     
   financing arrangement                                    -          (262)
                                             
    ------------  ------------ 
      Net cash provided by financing activities        10,698         8,513 
                                                                            
Effect of exchange rate changes on cash                   108          (571)
                                                                            
Net change in cash and cash equivalents                10,208       (19,191)
Cash and cash equivalents at beginning of period       94,458       113,649 
                                                 ------------  ------------ 
Cash and cash equivalents at end of period       $    104,666  $     94,458 
                                                 ============  ============ 
                                                                            
Supplemental disclosures of cash flow                                       
 information:                                                               
  Cash paid for income taxes                     $        923  $      1,487 
Supplemental schedule of non-cash investing and                             
 financing activities:                                                      
  Transfer of inventory to fixed assets          $      3,222  $          - 
  Non-cash settlement for manufacturing capacity                            
   advance                                       $        275  $          - 
                                                                            
                                                                            
                                                                            
Infinera Corporation                                                        
Supplemental Financial Information                                          
(Unaudited)                                                                 
                                                                            
----------------------------------------------------------------------------
                Q1'11   Q2'11   Q3'11  Q4'11   Q1'12   Q2'12   Q3'12   Q4'12
----------------------------------------------------------------------------
Revenue ($                                                                  
 Mil)            $92.9   $96.0 $104.0  $112.0  $104.7   $93.5  $112.2 $128.1
----------------------------------------------------------------------------
Gross Margin %                                                              
 (1)               48%     41%    41%     42%     40%     37%     39%    36%
----------------------------------------------------------------------------
Invoiced                                                                    
 Shipment                                                                   
 Composition:                                                               
----------------------------------------------------------------------------
Domestic %         74%     72%    65%     70%     71%     70%     70%    63%
----------------------------------------------------------------------------
International                                                               
 %                 26%     28%    35%     30%     29%     30%     30%    37%
----------------------------------------------------------------------------
Largest                                                                     
 Customer %        14%     10% < 10%     14%     13%     15%     13%    13%
----------------------------------------------------------------------------
Cash Related                                                                
 Information:                                                               
----------------------------------------------------------------------------
Cash from                                                                   
 (used in)                                                                  
 Operations ($                                                              
 Mil)           $(0.9)  $(0.1)   $4.1  $(5.1)  $(5.8) $(22.7) $(29.3)   $8.3
----------------------------------------------------------------------------
Capital                                                                     
 Expenditures                                                               
 ($ Mil)         $10.6    $6.7   $5.9   $16.1   $13.6    $6.1    $2.5   $3.2
----------------------------------------------------------------------------
Depreciation &                                                              
 Amortization                                                               
 ($ Mil)          $4.2    $4.2   $4.9    $4.5    $5.5    $5.7    $6.1   $6.4
----------------------------------------------------------------------------
DSO's               60      70     60      65      57      55      74     76
----------------------------------------------------------------------------
Inventory                                                                   
 Metrics:                                                                   
----------------------------------------------------------------------------
Raw Materials                                                               
 ($ Mil)         $20.1    $7.3   $7.0   $12.1   $15.3   $14.8   $12.4  $13.0
----------------------------------------------------------------------------
Work in                                                                     
 Process ($                                                                 
 Mil)            $17.2   $27.7  $26.9   $37.0   $41.6   $49.4   $59.8  $57.3
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Finished Goods                                                              
 ($ Mil)         $41.0   $34.4  $36.4   $39.9   $44.7   $50.9   $46.3  $57.5
----------------------------------------------------------------------------
Total                                                                       
 Inventory ($                                                               
 Mil)            $78.3   $69.4  $70.3   $89.0  $101.6  $115.1  $118.5 $127.8
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Inventory                                                                   
 Turns (1)         2.5     3.3    3.5     2.9     2.5     2.1     2.3    2.6
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Worldwide                                                                   
 Headcount       1,118   1,136  1,151   1,181   1,210   1,228   1,235  1,242
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(1) Amounts reflect non-GAAP results. Non-GAAP adjustments include non-cash 
    stock-based compensation expense.                                       

  
Contacts: 
Media:
Anna Vue
avue@infinera.com
Infinera Corporation
916-595-8157 
Investors/Analysts:
Jenifer Kirtland/Bob Jones
jkirtland@infinera.com / bjones@infinera.com 
Infinera Corporation
408-543-8139/408-543-8140 
 
 
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