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 Consequently, this Prospectus is not addressed to persons in, and the Prospectus may not be published or distributed in or into, any country or other jurisdiction where such action would require additional prospectuses, registration or measures besides those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 Third Quarter 2017 Financial Results and Announces Restructuring Plan

November 08, 2017

SUNNYVALE, Calif., Nov. 08, 2017 (GLOBE NEWSWIRE) -- Infinera Corporation (NASDAQ:INFN), provider of Intelligent Transport Networks, today released financial results for its third quarter ended September 30, 2017. The company also today announced a plan to restructure its worldwide operations to reduce its expenses and establish a more cost-efficient operating structure.

Third Quarter 2017 Financial Review

GAAP revenue for the quarter was $192.6 million compared to $176.8 million in the second quarter of 2017 and $185.5 million in the third quarter of 2016.

GAAP gross margin for the quarter was 35.2% compared to 36.7% in the second quarter of 2017 and 45.6% in the third quarter of 2016. GAAP operating margin for the quarter was (17.8)% compared to (22.9)% in the second quarter of 2017 and (5.9)% in the third quarter of 2016.

GAAP net loss for the quarter was $(37.2) million, or $(0.25) per share, compared to a net loss of $(42.8) million, or $(0.29) per share, in the second quarter of 2017, and net loss of $(11.2) million, or $(0.08) per share, in the third quarter of 2016.

Non-GAAP gross margin for the quarter was 39.1% compared to 40.7% in the second quarter of 2017 and 49.2% in the third quarter of 2016. Non-GAAP operating margin for the quarter was (7.8)% compared to (12.2)% in the second quarter of 2017 and 3.6% in the third quarter of 2016.

Non-GAAP net loss for the quarter was $(17.0) million, or $(0.11) per share, compared to a net loss of $(22.8) million, or $(0.15) per share, in the second quarter of 2017, and net income of $7.4 million, or $0.05 per diluted share, in the third quarter of 2016. 

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.

“In the third quarter we continued to bring new products to market and delivered financial results that exceeded our guidance,” said Tom Fallon, Infinera’s Chief Executive Officer. “Our ICE4 products are delivering the technology differentiation we expected and are gaining traction across multiple customer verticals. Despite a softening near-term market outlook, over time I am confident we will return to outgrowing the market and delivering strong financial results.”

Restructuring Initiative

Infinera also announced it is implementing a plan to restructure its worldwide operations in order to reduce its expenses and establish a more cost-efficient structure that better aligns its operations with its long-term strategies. As part of this restructuring plan, Infinera will reduce headcount, rationalize certain products and programs, and close a remote R&D facility.

Infinera anticipates annual savings from the restructuring to be approximately $40.0 million, compared to what the projected run-rate of expenses for fiscal 2018 would have been prior to the restructuring. Infinera estimates total costs related to the restructuring will be in the range of $21.0 million to $27.0 million. The company anticipates a majority of the restructuring will be completed during the fourth quarter of 2017.

“In recent years we have made significant investments to become a multi-market company, deliver a fully refreshed product portfolio and establish a faster technology cadence. Reflecting on the internal expansion associated with these investments, we have identified areas where we can be more efficient going forward,” stated Mr. Fallon.  “While difficult, my expectation is taking action at this time will result in a more cost-efficient structure that enables us to focus on our strengths and return to profitability as we grow. I believe these are the right steps for our shareholders, our company and our customers.”

Conference Call Information

Infinera will host a conference call for analysts and investors to discuss its third quarter 2017 results and its outlook for the fourth quarter of 2017 today at 4:30 p.m. Eastern Time (1:30 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.

Contacts:

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

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


About Infinera

Infinera provides Intelligent Transport Networks, enabling carriers, cloud operators, governments and enterprises to scale network bandwidth, accelerate service innovation and automate 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 www.infinera.com/blog.

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 continue to gain traction across multiple customer verticals; Infinera's ability to outgrow the market and deliver strong financial results; Infinera's ability to become a multi-market company, deliver a fully refreshed product portfolio and establish a faster technology cadence; Infinera’s expectations regarding its restructuring and the expected cost and annual savings associated with the restructuring plan. 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; the effects of increased customer consolidation; 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; Infinera’s ability to respond to rapid technological changes; aggressive business tactics by Infinera’s competitors; Infinera's ability to adequately respond to demand as a result of the restructuring plan; Infinera's reliance on single and limited 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 July 1, 2017 as filed with the SEC on August 8, 2017, 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, 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 third quarter 2017 results, including an estimate of certain non-GAAP financial measures for the fourth quarter of 2017 that excludes non-cash stock-based compensation expenses, amortization of acquired intangible assets and related tax effects, 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
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited) 

  Three Months Ended Nine Months Ended
  September 30,
2017
 September 24,
2016
 September 30,
2017
 September 24,
2016
Revenue:        
Product $159,579  $156,188  $449,992  $599,802 
Services 33,001  29,264  94,931  89,290 
      Total revenue 192,580  185,452  544,923  689,092 
Cost of revenue:        
Cost of product 111,803  91,064  311,437  331,564 
Cost of services 12,951  9,786  36,772  32,842 
      Total cost of revenue 124,754  100,850  348,209  364,406 
Gross profit 67,826  84,602  196,714  324,686 
Operating expenses:        
Research and development 56,616  50,855  169,076  164,541 
Sales and marketing 27,824  27,960  86,662  88,434 
General and administrative 17,634  16,646  53,556  51,617 
      Total operating expenses 102,074  95,461  309,294  304,592 
Income (loss) from operations (34,248) (10,859) (112,580) 20,094 
Other income (expense), net:        
Interest income 857  647  2,470  1,764 
Interest expense (3,549) (3,313) (10,408) (9,644)
Other gain (loss), net: (80) (188) (462) (1,116)
      Total other income (expense), net (2,772) (2,854) (8,400) (8,996)
Income (loss) before income taxes (37,020) (13,713) (120,980) 11,098 
Provision for (benefit from) income taxes 211  (2,416) (459) (725)
Net income (loss) (37,231) (11,297) (120,521) 11,823 
Less: Net loss attributable to noncontrolling interest   (125)   (503)
Net income (loss) attributable to Infinera Corporation $(37,231) $(11,172) $(120,521) $12,326 
Net income (loss) per common share attributable to Infinera Corporation:        
Basic $(0.25) $(0.08) $(0.82) $0.09 
Diluted $(0.25) $(0.08) $(0.82) $0.08 
Weighted average shares used in computing net income (loss) per common share:        
Basic 148,777  143,850  147,367  142,350 
Diluted 148,777  143,850  147,367  145,921 
             


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

 Three Months Ended Nine Months Ended
 September 30,
2017
   July 1,
2017
   September 24,
2016
   September 30,
2017
   September 24,
2016
  
Reconciliation of
Revenue:
                   
U.S. GAAP as reported$192,580    $176,821    $185,452    $544,923    $689,092   
Acquisition-related
deferred revenue
adjustment(1)
                400   
Non-GAAP as adjusted$192,580    $176,821    $185,452    $544,923    $689,492   
                    
Reconciliation of Gross Profit:                   
U.S. GAAP as reported$67,826  35.2% $64,832  36.7% $84,602  45.6% $196,714  36.1% $324,686  47.1%
Acquisition-related
deferred revenue
adjustment(1)
                400   
Stock-based
compensation(2)
2,063    2,071    1,424    5,965    4,614   
Amortization of acquired
intangible assets(3)
5,390    5,035    5,102    15,305    14,970   
Acquisition-related costs(4)    6    38    46    117   
Non-GAAP as adjusted$75,279  39.1% $71,944  40.7% $91,166  49.2% $218,030  40.0% $344,787  50.0%
                    
Reconciliation of Operating Expenses:                   
U.S. GAAP as reported$102,074    $105,337    $95,461    $309,294    $304,592   
Stock-based
compensation(2)
10,103    10,309    8,787    29,458    24,577   
Amortization of acquired
intangible assets(3)
1,622    1,515    1,537    4,605    4,753   
Acquisition-related costs(4)    16    563    322    1,453   
Intangible asset
impairment(5)
            252       
Non-GAAP as adjusted$90,349    $93,497    $84,574    $274,657    $273,809   
                    
Reconciliation of Income
(Loss) from Operations:
                   
U.S. GAAP as reported$(34,248) (17.8)% $(40,505) (22.9)% $(10,859) (5.9)% $(112,580) (20.7)% $20,094  2.9%
Acquisition-related
deferred revenue
adjustment(1)
                400   
Stock-based compensation(2)12,166    12,380    10,211    35,423    29,191   
Amortization of acquired
intangible assets(3)
7,012    6,550    6,639    19,910    19,723   
Acquisition-related costs(4)    22    601    368    1,570   
Intangible asset
impairment(5)
            252       
Non-GAAP as adjusted$(15,070) (7.8)% $(21,553) (12.2)% $6,592  3.6% $(56,627) (10.4)% $70,978  10.3%
                    
                    
Reconciliation of Net
Income (Loss)
Attributable to Infinera
Corporation:
                   
U.S. GAAP as reported$(37,231)   $(42,839)   $(11,172)   $(120,521)   $12,326   
Acquisition-related
deferred revenue
adjustment(1)
                400   
Stock-based
compensation(2)
12,166    12,380    10,211    35,423    29,191   
Amortization of acquired
intangible assets(3)
7,012    6,550    6,639    19,910    19,723   
Acquisition-related costs(4)    (4)   874    257    2,263   
Intangible asset
impairment(5)
            252       
Amortization of debt
discount(6)
2,643    2,577    2,391    7,734    6,996   
Income tax effects(7)(1,543)   (1,450)   (1,519)   (4,467)   (4,531)  
Non-GAAP as adjusted$(16,953)   $(22,786)   $7,424    $(61,412)   $66,368   
                    
Net Income (Loss) per
Common Share
Attributable to Infinera
Corporation - Basic:
                   
U.S. GAAP as reported$(0.25)   $(0.29)   $(0.08)   $(0.82)   $0.09   
Non-GAAP as adjusted$(0.11)   $(0.15)   $0.05    $(0.42)   $0.47   
Net Income (Loss) per
Common Share
Attributable to Infinera
Corporation - Diluted:
                   
U.S. GAAP as reported$(0.25)   $(0.29)   $(0.08)   $(0.82)   $0.08   
Non-GAAP as adjusted$(0.11)   $(0.15)   $0.05    $(0.42)   $0.45   
Weighted Average
Shares Used in
Computing Net Income
(Loss) per Common
Share:
                   
Basic148,777    147,538    143,850    147,367    142,350   
Diluted148,777    147,538    144,993    147,367    145,921   

____________________________

(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 non-cash stock-based compensation related to employees and non-employees (in thousands):


  Three Months Ended Nine Months Ended
  September 30,
2017
 July 1,
2017
 September 24,
2016
 September 30,
2017
 September 24,
2016
Cost of revenue $779  $834  $756  $2,337  $2,175 
Research and development 4,040  4,184  3,496  12,004  9,721 
Sales and marketing 3,025  3,273  2,826  9,024  8,006 
General and administration 3,039  2,852  2,465  8,431  6,850 
  10,883  11,143  9,543  31,796  26,752 
Cost of revenue - amortization from balance sheet* 1,284  1,237  668  3,628  2,439 
Total stock-based compensation expense $12,167  $12,380  $10,211  $35,424  $29,191 

 _____________________________

* 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) 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.
   
(5) Intangible asset impairment is associated with previously acquired intangibles, which Infinera has determined that the carrying value will not be recoverable. 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.
   
(6) 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 in aggregate principal amount of 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.
   
(7) 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 amortization of acquired intangible assets.
   


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

  September 30,
2017
 December 31,
2016
ASSETS    
Current assets:    
Cash and cash equivalents $122,042  $162,641 
Short-term investments 134,319  141,697 
Short-term restricted cash 740  8,490 
Accounts receivable, net of allowance for doubtful accounts of $885 in 2017 and $772 in 2016 137,133  150,370 
Inventory 242,848  232,955 
Prepaid expenses and other current assets 50,320  34,270 
            Total current assets 687,402  730,423 
Property, plant and equipment, net 143,217  124,800 
Intangible assets 99,953  108,475 
Goodwill 197,325  176,760 
Long-term investments 47,575  40,779 
Cost-method investment 7,000  7,000 
Long-term restricted cash 4,299  6,449 
Other non-current assets 4,328  3,897 
           Total assets $1,191,099  $1,198,583 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
Accounts payable $89,310  $62,486 
Accrued expenses 30,080  31,580 
Accrued compensation and related benefits 40,571  46,637 
Short-term debt, net 141,985   
Accrued warranty 14,245  16,930 
Deferred revenue 65,328  58,900 
           Total current liabilities 381,519  216,533 
Long-term debt, net   133,586 
Accrued warranty, non-current 17,917  23,412 
Deferred revenue, non-current 21,794  19,362 
Deferred tax liability 23,384  25,327 
Other long-term liabilities 14,547  18,035 
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 September 30, 2017 and December 31, 2016    
      Issued and outstanding shares - 149,305 as of September 30, 2017 and 145,021 as of December 31, 2016 149  145 
Additional paid-in capital 1,406,936  1,354,082 
Accumulated other comprehensive income (loss) 8,949  (28,324)
Accumulated deficit (684,096) (563,575)
Total stockholders’ equity 731,938  762,328 
           Total liabilities and stockholders’ equity $1,191,099  $1,198,583 
         


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

  Nine Months Ended
  September 30,
2017
 September 24,
2016
Cash Flows from Operating Activities:    
Net income (loss) $(120,521) $11,823 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation and amortization 49,391  45,764 
Amortization of debt discount and issuance costs 8,399  7,598 
Amortization of premium on investments 359  925 
Impairment of intangible assets 252   
Stock-based compensation expense 35,424  29,191 
Other loss 11  261 
Changes in assets and liabilities:    
     Accounts receivable 15,078  33,044 
     Inventory (9,601) (61,078)
     Prepaid expenses and other assets (15,366) (1,625)
     Accounts payable 25,840  (13,935)
     Accrued liabilities and other expenses (10,310) (7,580)
     Deferred revenue 8,575  (805)
     Accrued warranty (8,447) (179)
         Net cash provided by (used in) operating activities (20,916) 43,404 
Cash Flows from Investing Activities:    
Purchase of available-for-sale investments (122,249) (118,017)
Proceeds from sales of available-for-sale investments 10,531   
Proceeds from maturities of investments 111,970  110,554 
Purchase of cost-method investment   (5,000)
Purchase of property and equipment (50,247) (32,878)
Change in restricted cash 4,389  (4,950)
         Net cash used in investing activities (45,606) (50,291)
Cash Flows from Financing Activities:    
Security pledge to acquire noncontrolling interest 5,596  (5,921)
Acquisition of noncontrolling interest (471) (16,771)
Proceeds from issuance of common stock 17,991  16,486 
Minimum tax withholding paid on behalf of employees for net share settlement (963) (3,592)
         Net cash provided by (used in) financing activities 22,153  (9,798)
Effect of exchange rate changes on cash 3,770  (1,420)
Net change in cash and cash equivalents (40,599) (18,105)
Cash and cash equivalents at beginning of period 162,641  149,101 
Cash and cash equivalents at end of period $122,042  $130,996 
Supplemental disclosures of cash flow information:    
Cash paid for income taxes, net of refunds $4,159  $5,557 
Cash paid for interest $1,317  $1,445 
Supplemental schedule of non-cash investing activities:    
Transfer of inventory to fixed assets $3,110  $5,211 
         


Infinera Corporation
Supplemental Financial Information
(Unaudited)

  Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17
GAAP Revenue ($ Mil) $260.0  $244.8  $258.8  $185.5  $181.0  $175.5  $176.8  $192.6 
GAAP Gross Margin %  44.5%  47.5%  47.8%  45.6%  38.1%  36.5%  36.7%  35.2%
Non-GAAP Gross Margin %(1)  48.3%  50.2%  50.4%  49.2%  41.8%  40.3%  40.7%  39.1%
Revenue Composition:                
Domestic %  62%  71%  64%  56%  53%  57%  63%  59%
International %  38%  29%  36%  44%  47%  43%  37%  41%
Customers >10% of Revenue  2   3   2   2   2   1   3   2 
Cash Related Information:                
Cash from Operations ($ Mil) $25.8  $10.0  $28.2  $5.2  ($5.0) $3.0  ($3.0) ($20.9)
Capital Expenditures ($ Mil) $15.3  $10.8  $12.5  $9.6  $10.4  $14.7  $24.5  $11.0 
Depreciation & Amortization ($ Mil) $13.7  $14.7  $15.2  $15.9  $15.7  $16.0  $16.6  $16.8 
DSOs  65   69   68   75   81   64   64   65 
Inventory Metrics:                
Raw Materials ($ Mil) $27.9  $33.1  $39.1  $37.2  $33.2  $34.8  $36.7  $35.8 
Work in Process ($ Mil) $52.6  $59.4  $61.0  $65.5  $74.5  $81.1  $91.6  $84.3 
Finished Goods ($ Mil) $94.2  $97.2  $102.2  $128.8  $125.3  $118.0  $117.7  $122.7 
Total Inventory ($ Mil) $174.7  $189.7  $202.3  $231.5  $233.0  $233.9  $246.0  $242.8 
Inventory Turns(2)  3.1   2.6   2.5   1.6   1.8   1.8   1.7   1.9 
Worldwide Headcount  2,056   2,128   2,218   2,262   2,240   2,245   2,272   2,296 
Weighted Average Shares Outstanding (in thousands):                
Basic  140,015   140,805   142,396   143,850   144,770   145,786   147,538   148,777 
Diluted  149,439   146,880   145,891   144,993   145,497   147,017   148,662   149,714 

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(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.
   

 

Source: Infinera Corporation