Nasdaq: INFN 7.32 +0.15 ( +2.09% ) Volume: 1,160,143 Delayed 20 minutes November 22, 2017

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This Prospectus has been prepared and is made available solely for the purpose of the Offer to Infinera’s employees in Sweden to participate in the ESPP. The information in the Prospectus is only provided in contemplation of the Offer and may not be used for any other purpose. Consequently, this Prospectus is not addressed to persons in, and the Prospectus may not be published or distributed in or into, any country or other jurisdiction where such action would require additional prospectuses, registration or measures besides those required by Swedish law, or otherwise would be in conflict with applicable regulations. Any failure to comply with such restrictions may result in a violation of applicable securities regulations.

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Infinera Corporation Reports Fourth Quarter and Fiscal Year 2016 Financial Results

February 09, 2017

SUNNYVALE, Calif., Feb. 09, 2017 (GLOBE NEWSWIRE) -- Infinera Corporation (Nasdaq:INFN), provider of Intelligent Transport Networks, today released financial results for its fourth quarter and fiscal year ended December 31, 2016.

GAAP revenue for the quarter was $181.0 million compared to $185.5 million in the third quarter of 2016 and $260.0 million in the fourth quarter of 2015.

GAAP gross margin for the quarter was 38.1% compared to 45.6% in the third quarter of 2016 and 44.5% in the fourth quarter of 2015. GAAP operating margin for the quarter was (25.3)% compared to (5.9)% in the third quarter of 2016 and 5.3% in the fourth quarter of 2015.

GAAP net loss for the quarter was $(36.3) million, or $(0.25) per share, compared to $(11.2) million, or $(0.08) per share, in the third quarter of 2016 and net income of $12.6 million, or $0.08 per diluted share, in the fourth quarter of 2015.

Non-GAAP gross margin for the quarter was 41.8% compared to 49.2% in the third quarter of 2016 and 48.3% in the fourth quarter of 2015. Non-GAAP operating margin for the quarter was (9.2)% compared to 3.6% in the third quarter of 2016 and 12.7% in the fourth quarter of 2015.

Non-GAAP net loss for the quarter was $(17.0) million, or $(0.12) per share, compared to net income of $7.4 million, or $0.05 per diluted share, in the third quarter of 2016, and net income of $32.0 million, or $0.21 per diluted share, in the fourth quarter of 2015.

GAAP revenue for the year was $870.1 million compared to $886.7 million in 2015.

GAAP gross margin for the year was 45.2% compared to 45.5% in 2015. GAAP operating margin for the year was (3.0)% compared to 6.7% in 2015. GAAP net loss for the year was $(23.9) million, or $(0.17) per share, compared to net income of $51.4 million, or $0.36 per diluted share, in 2015.

Non-GAAP gross margin for the year was 48.3% compared to 47.8% in 2015. Non-GAAP operating margin for the year was 6.2% compared to 13.1% in 2015. Non-GAAP net income for the year was $49.4 million, or $0.34 per diluted share, compared to net income of $112.0 million, or $0.78 per diluted share, in 2015.

A further explanation of the use of non-GAAP financial information and a reconciliation of the non-GAAP financial measures to the GAAP equivalents can be found at the end of this release.

“We executed well in the fourth quarter and delivered results at the high-end of our guidance,” said Tom Fallon, Infinera's Chief Executive Officer. “As network infrastructures rapidly evolve, our objective remains to help our customers win by delivering the highest performing solutions at the Transport Layer. Though our product transition is currently holding back revenue growth and profitability, by introducing next generation ICE4 products, my belief is that we are well positioned to begin improving our business results over the course of 2017 and for significant opportunities in the future.”

Conference Call Information

Infinera will host a conference call for analysts and investors to discuss its fourth quarter and fiscal year 2016 results and its outlook for the first quarter of 2017 today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Interested parties may join the conference call by dialing 1-866-373-6878 (toll free) or 1-412-317-5101 (international). A live webcast of the conference call will also be accessible from the Events & Webcasts section of Infinera’s website at investors.infinera.com. Replay of the audio webcast will be available at investors.infinera.com approximately two hours after the end of the live call.

About Infinera

Infinera provides Intelligent Transport Networks, enabling carriers, cloud operators, governments and enterprises to scale network bandwidth, accelerate service innovation and simplify optical network operations. Infinera’s end-to-end packet-optical portfolio is designed for long-haul, subsea, data center interconnect and metro applications. Infinera’s unique large scale photonic integrated circuits enable innovative optical networking solutions for the most demanding networks. To learn more about Infinera visit www.infinera.com, follow us on Twitter @Infinera and read our latest blog posts at blog.infinera.com.

Forward-Looking Statements

This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. Such forward-looking statements include, without limitation, Infinera's ability to deliver the highest performing solutions at the Transport Layer; Infinera’s expectations regarding revenue growth and profitability with the introduction of its next generation products powered by Infinera's Infinite Capacity Engine (ICE); and Infinera’s expectations that Infinera is well positioned to begin improving its business results over the course of 2017 and for significant opportunities in the future. Forward-looking statements can also be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. These statements are based on information available to Infinera as of the date hereof and actual results could differ materially from those stated or implied due to risks and uncertainties. The risks and uncertainties that could cause Infinera’s results to differ materially from those expressed or implied by such forward-looking statements include delays in the development and introduction of new products or updates to existing products and market acceptance of these products; fluctuations in demand, sales cycles and prices for products and services, including discounts given in response to competitive pricing pressures, as well as the timing of purchases by our key customers; the effect that changes in product pricing or mix, and/or increases in component costs could have on Infinera’s gross margin; the effects of increased customer consolidation; Infinera’s ability to respond to rapid technological changes; aggressive business tactics by Infinera’s competitors; Infinera's reliance on single-source suppliers; Infinera’s ability to protect Infinera’s intellectual property; claims by others that Infinera infringes their intellectual property; the effect of global macroeconomic conditions on Infinera's business; war, terrorism, public health issues, natural disasters and other circumstances that could disrupt the supply, delivery or demand of Infinera's products; and other risks and uncertainties detailed in Infinera’s SEC filings from time to time. More information on potential factors that may impact Infinera’s business are set forth in its Quarterly Report on Form 10-Q for the quarter ended on September 24, 2016 as filed with the SEC on November 1, 2016, as well as subsequent reports filed with or furnished to the SEC from time to time. These reports are available on Infinera’s website at www.infinera.com and the SEC’s website at www.sec.gov. Infinera assumes no obligation to, and does 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, amortization of debt discount on Infinera’s convertible senior notes, the gain on the sale of a cost-method investment, amortization and impairment of acquired intangible assets, acquisition-related costs, and certain purchase accounting adjustments related to Infinera's acquisition of Transmode AB, which closed during the third quarter of 2015, along with related tax effects. Infinera believes these adjustments are appropriate to enhance an overall understanding of its underlying financial performance and also its 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 its 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, gross margin or operating 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.” Infinera anticipates disclosing forward-looking non-GAAP information in its conference call to discuss its fourth quarter and fiscal year 2016 results, including an estimate of certain non-GAAP financial measures for the first quarter of 2017 that excludes non-cash stock-based compensation expenses, amortization of acquired intangible assets and amortization of debt discount on Infinera’s convertible senior notes.

A copy of this press release can be found on the Investor Relations page of Infinera’s website at www.infinera.com.

Infinera 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 per share data)
(Unaudited) 

  Three Months Ended Twelve Months Ended
  December 31, 2016 December 26, 2015 December 31, 2016 December 26, 2015
Revenue:        
Product $151,365  $227,040  $751,167  $769,230 
Services 29,678  32,994  118,968  117,484 
Total revenue 181,043  260,034  870,135  886,714 
Cost of revenue:        
Cost of product 101,702  130,765  433,266  436,916 
Cost of services 10,309  13,505  43,151  46,321 
Total cost of revenue 112,011  144,270  476,417  483,237 
Gross profit 69,032  115,764  393,718  403,477 
Operating expenses:        
Research and development 67,750  52,559  232,291  180,703 
Sales and marketing 30,424  34,100  118,858  101,398 
General and administrative 16,726  15,316  68,343  61,640 
Total operating expenses 114,900  101,975  419,492  343,741 
Income (loss) from operations (45,868) 13,789  (25,774) 59,736 
Other income (expense), net:        
Interest income 714  466  2,478  1,837 
Interest expense (3,243) (3,090) (12,887) (11,941)
Other gain (loss), net: 8,118  611  7,002  2,399 
Total other income (expense), net 5,589  (2,013) (3,407) (7,705)
Income (loss) before income taxes (40,279) 11,776  (29,181) 52,031 
Provision for (benefit from) income taxes (4,026) (392) (4,751) 1,081 
Net income (loss) (36,253) 12,168  (24,430) 50,950 
Less: Net loss attributable to noncontrolling interest   (463) (503) (463)
Net income (loss) attributable to Infinera Corporation $(36,253) $12,631  $(23,927) $51,413 
Net income (loss) per common share attributable to Infinera Corporation:        
Basic $(0.25) $0.09  $(0.17) $0.39 
Diluted $(0.25) $0.08  $(0.17) $0.36 
Weighted average shares used in computing net income (loss) per common share:        
Basic 144,770  140,015  142,989  133,259 
Diluted 144,770  149,439  142,989  143,171 


Infinera Corporation
GAAP to Non-GAAP Reconciliations
(In thousands, except percentages and per share data)
(Unaudited) 

 Three Months Ended Twelve Months Ended
 December 31, 2016   September 24, 2016   December 26, 2015   December 31, 2016   December 26, 2015  
Reconciliation of Revenue:                   
U.S. GAAP as reported$181,043    $185,452    $260,034    $870,135    $886,714   
Acquisition-related deferred revenue adjustment(1)        605    400    1,326   
Non-GAAP as adjusted$181,043    $185,452    $260,639    $870,535    $888,040   
                    
Reconciliation of Gross Profit:                   
U.S. GAAP as reported$69,032  38.1% $84,602  45.6% $115,764  44.5% $393,718  45.2% $403,477  45.5%
Acquisition-related deferred revenue adjustment(1)        605    400    1,326   
Stock-based compensation(2)1,849    1,424    1,733    6,463    6,090   
Amortization of acquired intangible assets(3)4,745    5,102    4,640    19,715    6,562   
Acquisition-related inventory step-up expense(4)        3,090        6,710   
Acquisition-related costs(5)27    38    39    144    39   
Non-GAAP as adjusted$75,653  41.8% $91,166  49.2% $125,871  48.3% $420,440  48.3% $424,204  47.8%
                    
Reconciliation of Operating Expenses:                   
U.S. GAAP as reported$114,900    $95,461    $101,975    $419,492    $343,741   
Stock-based compensation(2)9,493    8,787    6,979    34,070    26,490   
Amortization of acquired intangible assets(3)1,436    1,537    1,656    6,189    2,342   
Acquisition-related costs(5)416    563    565    1,869    7,241   
Acquired IPR&D impairment(6)11,295            11,295       
Non-GAAP as adjusted$92,260    $84,574    $92,775    $366,069    $307,668   
                    
Reconciliation of Income (Loss) from Operations:                   
U.S. GAAP as reported$(45,868) (25.3)% $(10,859) (5.9)% $13,789  5.3% $(25,774) (3.0)% $59,736  6.7%
Acquisition-related deferred revenue adjustment(1)        605    400    1,326   
Stock-based compensation(2)11,342    10,211    8,712    40,533    32,580   
Amortization of acquired intangible assets(3)6,181    6,639    6,296    25,904    8,904   
Acquisition-related inventory step-up expense(4)        3,090        6,710   
Acquisition-related costs(5)443    601    604    2,013    7,280   
Acquired IPR&D impairment(6)11,295            11,295       
Non-GAAP as adjusted$(16,607) (9.2)% $6,592  3.6% $33,096  12.7% $54,371  6.2% $116,536  13.1%
                    
Reconciliation of Net Income (Loss) Attributable to Infinera Corporation:                   
U.S. GAAP as reported$(36,253)   $(11,172)   $12,631    $(23,927)   $51,413   
Acquisition-related deferred revenue adjustment(1)        605    400    1,326   
Stock-based compensation(2)11,342    10,211    8,712    40,533    32,580   
Amortization of acquired intangible assets(3)6,181    6,639    6,296    25,904    8,904   
Acquisition-related inventory step-up expense(4)        3,090        6,710   
Acquisition-related costs(5)818    874    604    3,081    7,280   
Acquired IPR&D impairment(6)11,295            11,295       
Acquisition-related forward contract gain(7)                (1,054)  
Amortization of debt discount(8)2,451    2,391    2,217    9,447    8,545   
Gain on sale of cost-method investment(9)(8,983)           (8,983)      
Income tax effects(10)(3,829)   (1,519)   (2,197)   (8,360)   (3,726)  
Non-GAAP as adjusted$(16,978)   $7,424    $31,958    $49,390    $111,978   
                    
Net Income (Loss) per Common Share Attributable to Infinera Corporation - Basic:                   
U.S. GAAP as reported$(0.25)   $(0.08)   $0.09    $(0.17)   $0.39   
Non-GAAP as adjusted$(0.12)   $0.05    $0.23    $0.35    $0.84   
Net Income (Loss) per Common Share Attributable to Infinera Corporation - Diluted:                   
U.S. GAAP as reported$(0.25)   $(0.08)   $0.08    $(0.17)   $0.36   
Non-GAAP as adjusted$(0.12)   $0.05    $0.21    $0.34    $0.78   
Weighted Average Shares Used in Computing Net Income (Loss) per Common Share:                   
Basic144,770    143,850    140,015    142,989    133,259   
Diluted144,770    144,993    149,439    145,800    143,171   

_____________________________

(1) Business combination accounting principles require Infinera to write down to fair value its maintenance support contracts assumed in the Transmode acquisition. The revenue for these support contracts is deferred and typically recognized over a one year period, so Infinera's GAAP revenue for the one year period after the acquisition will not reflect the full amount of revenue that would have been reported if the acquired deferred revenue was not written down to fair value. The non-GAAP adjustment eliminates the effect of the deferred revenue write-down. Management believes these adjustments to the revenue from these support contracts are useful to investors as an additional means to reflect revenue trends of Infinera's business.

(2) Stock-based compensation expense is calculated in accordance with the fair value recognition provisions of Financial Accounting Standards Board Accounting Standards Codification 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 (in thousands):

  Three Months Ended Twelve Months Ended
  December 31, 2016 September 24, 2016 December 26, 2015 December 31, 2016 December 26, 2015
Cost of revenue $791  $756  $665  $2,966  $2,405 
Research and development 4,011  3,496  2,872  13,732  11,055 
Sales and marketing 3,037  2,826  2,159  11,043  8,081 
General and administration 2,445  2,465  1,948  9,295  7,354 
  10,284  9,543  7,644  37,036  28,895 
Cost of revenue - amortization from balance sheet* 1,058  668  1,068  3,497  3,685 
Total stock-based compensation expense $11,342  $10,211  $8,712  $40,533  $32,580 

 _____________________________
*      Stock-based compensation expense deferred to inventory and deferred inventory costs in prior periods and recognized in the current period.

(3) Amortization of acquisition-related intangible assets consists of amortization of developed technology, trade names, and customer relationships acquired in connection with the Transmode acquisition. U.S. GAAP accounting requires that acquired intangible assets are recorded at fair value and amortized over their useful lives. As this amortization is non-cash, Infinera has excluded it from its non-GAAP operating expenses, gross margin and net income measures. Management believes the amortization of acquired intangible assets is not indicative of ongoing operating performance and its exclusion provides a better indication of Infinera's underlying business performance.

(4) Business combination accounting principles require Infinera to measure acquired inventory at fair value as of the date of the acquisition. The fair value of inventory reflects the acquired company's cost of manufacturing plus a portion of the expected profit margin. The non-GAAP adjustment to Infinera's cost of sales excludes the amortization of the step-up in carrying value for units sold in the quarter. Management believes the adjustment is useful to investors as an additional means to reflect cost of sales and gross margin trends of Infinera's business.

(5) Acquisition-related costs associated with the Transmode acquisition include legal, financial, employee retention costs and other professional fees incurred in connection with the transaction, including squeeze-out proceedings. These amounts have been adjusted in arriving at Infinera's non-GAAP results because management believes that these expenses are non-recurring, not indicative of ongoing operating performance and their exclusion provides a better indication of Infinera's underlying business performance.

(6) Acquired in-process research and development (IPR&D) impairment is associated with intangibles acquired with the Transmode acquisition, which the Company does not anticipate utilizing in future products. Management has excluded the impact of this charge in arriving at Infinera's non-GAAP results because it is non-recurring and management believes that these expenses are not indicative of ongoing operating performance.

(7) In April 2015, Infinera entered into a foreign currency forward contract and in July 2015, Infinera entered into a series of foreign currency exchange option contracts to hedge currency exposures associated with the cash portion of the offer to acquire Transmode. The forward contract and option contracts were subsequently closed during the third quarter of 2015. The net change in the fair value of the forward contract and option contracts impacted Infinera's financial statements for 2015. Management has excluded the impact of these gains and losses in arriving at Infinera's non-GAAP results because they are non-recurring and management believes that these gains are not indicative of ongoing operating performance.

(8) Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be separately accounted for as liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's non-convertible debt borrowing rate. Accordingly, for GAAP purposes, Infinera is required to amortize as debt discount an amount equal to the fair value of the conversion option that was recorded in equity as interest expense on its $150 million 1.75% convertible debt issuance in May 2013 over the term of the notes. Interest expense has been excluded from Infinera's non-GAAP results because management believes that this non-cash expense is not indicative of ongoing operating performance and provides a better indication of Infinera's underlying business performance.

(9) The gain on the sale of a cost-method investment has been excluded in arriving at Infinera's non-GAAP results because it is non-recurring and management believes that this gain is not indicative of ongoing operating performance.

(10) The difference between the GAAP and non-GAAP tax is due to the net tax effects of the purchase accounting adjustments, acquisition-related costs and the IPR&D impairment related to the Transmode acquisition.


Infinera Corporation
Condensed Consolidated Balance Sheets
(In thousands, except par values)
(Unaudited)

  December 31, 2016 December 26, 2015
ASSETS    
Current assets:    
Cash and cash equivalents $162,641  $149,101 
Short-term investments 141,697  125,561 
Short-term restricted cash 8,490   
Accounts receivable, net of allowance for doubtful accounts of $772 in 2016 and $630 in 2015 150,370  186,243 
Inventory 232,955  174,699 
Prepaid expenses and other current assets 34,270  29,511 
Total current assets 730,423  665,115 
Property, plant and equipment, net 124,800  110,861 
Intangible assets 108,475  156,319 
Goodwill 176,760  191,560 
Long-term investments 40,779  76,507 
Cost-method investment 7,000  14,500 
Long-term restricted cash 6,449  5,310 
Other non-current assets 3,897  4,009 
Total assets $1,198,583  $1,224,181 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
Accounts payable $62,486  $92,554 
Accrued expenses 31,580  33,736 
Accrued compensation and related benefits 46,637  49,887 
Accrued warranty 16,930  17,889 
Deferred revenue 59,953  42,977 
Total current liabilities 217,586  237,043 
Long-term debt, net 133,586  123,327 
Accrued warranty, non-current 23,412  20,955 
Deferred revenue, non-current 18,309  13,881 
Deferred tax liability 25,327  35,731 
Other long-term liabilities 18,035  16,183 
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    
Authorized shares - 500,000 as of December 31, 2016 and December 26, 2015    
Issued and outstanding shares - 145,021 as of December 31, 2016 and 140,197 as of December 26, 2015 145  140 
Additional paid-in capital 1,354,082  1,300,301 
Accumulated other comprehensive income (loss) (28,324) 1,123 
Accumulated deficit (563,575) (539,413)
Total Infinera Corporation stockholders' equity 762,328  762,151 
Noncontrolling interest   14,910 
Total stockholders’ equity 762,328  777,061 
Total liabilities and stockholders’ equity $1,198,583  $1,224,181 


Infinera Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

  Twelve Months Ended
  December 31, 2016 December 26, 2015
Cash Flows from Operating Activities:    
Net income (loss) $(24,430) $50,950 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and amortization 61,489  35,777 
Amortization of debt discount and issuance costs 10,260  9,281 
Amortization of premium on investments 1,069  2,917 
Impairment of acquired in-process research and development 11,295   
Realized gain on sale of cost-method investment (8,983)  
Stock-based compensation expense 40,533  32,580 
Other loss (gain) 672  (442)
Changes in assets and liabilities:    
Accounts receivable 33,895  (15,971)
Inventory (64,095) (17,116)
Prepaid expenses and other assets (5,501) (3,248)
Accounts payable (28,254) 19,223 
Accrued liabilities and other expenses (11,012) 8,448 
Deferred revenue 21,439  10,777 
Net cash provided by operating activities 38,377  133,176 
Cash Flows from Investing Activities:    
Purchase of available-for-sale investments (124,077) (186,737)
Proceeds from sales of available-for-sale investments   67,303 
Proceeds from maturities and calls of investments 142,898  213,234 
Purchase of cost-method investment (7,000)  
Proceeds from sale of cost-method investment 23,483   
Purchase of property and equipment (43,335) (42,018)
Acquisition of business, net of cash acquired   (144,445)
Realized gain from forward contract for business acquisition   1,053 
Change in restricted cash (4,084) 135 
Net cash used in investing activities (12,115) (91,475)
Cash Flows from Financing Activities:    
Security pledge related to Squeeze-out Proceedings (6,086)  
Acquisition of noncontrolling interest (16,771)  
Proceeds from issuance of common stock 17,648  25,351 
Minimum tax withholding paid on behalf of employees for net share settlement (3,657) (5,227)
Excess tax benefit from stock option transactions   859 
Net cash provided by (used in) financing activities (8,866) 20,983 
Effect of exchange rate changes on cash (3,856) (78)
Net change in cash and cash equivalents 13,540  62,606 
Cash and cash equivalents at beginning of period 149,101  86,495 
Cash and cash equivalents at end of period $162,641  $149,101 
Supplemental disclosures of cash flow information:    
Cash paid for income taxes, net of refunds $6,625  $4,570 
Cash paid for interest $2,776  $2,647 
Supplemental schedule of non-cash investing and financing activities:    
Transfer of inventory to fixed assets $5,597  $9,314 
Common stock issued in connection with acquisition $  $169,507 


Infinera Corporation
Supplemental Financial Information
(Unaudited)

  Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
GAAP Revenue ($ Mil) $186.9  $207.3  $232.5  $260.0  $244.8  $258.8  $185.5  $181.0 
GAAP Gross Margin %  47.2%  46.7%  44.2%  44.5%  47.5%  47.8%  45.6%  38.1%
Non-GAAP Gross Margin %(1)  47.8%  47.4%  47.5%  48.3%  50.2%  50.4%  49.2%  41.8%
Revenue Composition:                
Domestic %  68%  75%  68%  62%  71%  64%  56%  53%
International %  32%  25%  32%  38%  29%  36%  44%  47%
Customers >10% of Revenue  2   3   2   2   3   2   2   2 
Cash Related Information:                
Cash from Operations ($ Mil) $19.8  $55.0  $32.5  $25.8  $10.0  $28.2  $5.2  $(5.0)
Capital Expenditures ($ Mil) $7.4  $8.7  $10.6  $15.3  $10.8  $12.5  $9.6  $10.4 
Depreciation & Amortization ($ Mil) $6.6  $6.3  $9.2  $13.7  $14.7  $15.2  $15.9  $15.7 
DSOs  64   48   55   65   69   68   75   81 
Inventory Metrics:                
Raw Materials ($ Mil) $22.4  $30.2  $24.2  $27.9  $33.1  $39.1  $37.2  $33.2 
Work in Process ($ Mil) $45.9  $43.9  $48.5  $52.6  $59.4  $61.0  $65.5  $74.5 
Finished Goods ($ Mil) $88.9  $83.1  $97.2  $94.2  $97.2  $102.2  $128.8  $125.3 
Total Inventory ($ Mil) $157.2  $157.2  $169.9  $174.7  $189.7  $202.3  $231.5  $233.0 
Inventory Turns(2)  2.5   2.8   2.9   3.1   2.6   2.5   1.6   1.8 
Worldwide Headcount  1,530   1,598   1,978   2,056   2,128   2,218   2,262   2,240 
                                 
                                 

(1)  Non-GAAP adjustments include non-cash stock-based compensation expense, certain purchase accounting adjustments related to Infinera's acquisition of Transmode and amortization of acquired intangible assets. For a description of this non-GAAP financial measure, please see the section titled, “GAAP to Non-GAAP Reconciliations” of this press release for a reconciliation to the most directly comparable GAAP financial measures.

(2)  Infinera calculates non-GAAP inventory turns as annualized non-GAAP cost of revenue before adjustments for non-cash stock-based compensation expense and certain purchase accounting adjustments, divided by the average inventory for the quarter.

Contacts:
Media:
Anna Vue
Tel. +1 (916) 595-8157
avue@infinera.com

Investors:
Jeff Hustis
Tel. +1 (408) 213-7150
jhustis@infinera.com

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Source: Infinera Corporation