GAAP revenue for the quarter was
GAAP gross margin for the quarter was 38.6% compared to 40.3% in the third quarter of 2023 and 37.1% in the fourth quarter of 2022. GAAP operating margin for the quarter was 2.5% compared to 2.0% in the third quarter of 2023 and 5.2% in the fourth quarter of 2022.
GAAP net income for the quarter was
Non-GAAP gross margin for the quarter was 39.6% compared to 41.9% in the third quarter of 2023 and 38.7% in the fourth quarter of 2022. Non-GAAP operating margin for the quarter was 7.2% compared to 7.7% in the third quarter of 2023 and 10.5% in the fourth quarter of 2022.
Non-GAAP net income for the quarter was
GAAP revenue for the year was
Non-GAAP gross margin for the year was 39.9% compared to 37.3% in 2022. Non-GAAP operating margin for the year was 5.4% compared to 4.4% in 2022. Non-GAAP net income for the year was
A further explanation of the use of non-GAAP financial information and a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure can be found at the end of this press release.
On
As a result, the Company currently expects to file its Quarterly Report on Form 10-Q for its fiscal quarter ended
Fourth Quarter 2023 Investor Slides to be Made Available Online After the Filing of Form 10-K
Investor slides reviewing
Contacts:
Media:
Tel. +1 (916) 595-8157
avue@infinera.com
Investors:
Tel. +1 (669) 295-1489
apassi@infinera.com
About
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or
Infinera’s financial results for the fourth quarter of and full fiscal year 2023 are subject to all aspects of the final quarterly and annual review process and may change as a result of new information that arises, or new determinations that are made, in this process.
These forward-looking statements are based on estimates and information available to
Use of Non-GAAP Financial Information
In addition to disclosing financial measures prepared in accordance with
For a description of these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measures, please see the table titled “GAAP to Non-GAAP Reconciliations” and related footnotes.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended | Twelve months ended | ||||||||||||||
2022 | 2022 | ||||||||||||||
Revenue: | |||||||||||||||
Product | $ | 373,172 | $ | 398,880 | $ | 1,304,229 | $ | 1,268,624 | |||||||
Services | 80,284 | 87,056 | 309,899 | 304,618 | |||||||||||
Total revenue | 453,456 | 485,936 | 1,614,128 | 1,573,242 | |||||||||||
Cost of revenue: | |||||||||||||||
Cost of product | 233,693 | 255,449 | 810,845 | 852,476 | |||||||||||
Cost of services | 42,643 | 45,485 | 167,532 | 161,630 | |||||||||||
Amortization of intangible assets | — | 4,451 | 10,621 | 23,138 | |||||||||||
Restructuring and other related costs | 2,218 | 37 | 2,218 | 222 | |||||||||||
Total cost of revenue | 278,554 | 305,422 | 991,216 | 1,037,466 | |||||||||||
Gross profit | 174,902 | 180,514 | 622,912 | 535,776 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 79,645 | 77,986 | 316,879 | 306,188 | |||||||||||
Sales and marketing | 42,532 | 41,373 | 166,938 | 146,445 | |||||||||||
General and administrative | 35,112 | 31,639 | 124,874 | 118,602 | |||||||||||
Amortization of intangible assets | 2,256 | 3,581 | 12,344 | 14,576 | |||||||||||
Restructuring and other related costs | 4,096 | 577 | 6,717 | 10,122 | |||||||||||
Total operating expenses | 163,641 | 155,156 | 627,752 | 595,933 | |||||||||||
Income (loss) from operations | 11,261 | 25,358 | (4,840 | ) | (60,157 | ) | |||||||||
Other income (expense), net: | |||||||||||||||
Interest income | 982 | 467 | 2,716 | 893 | |||||||||||
Interest expense | (8,814 | ) | (7,255 | ) | (30,609 | ) | (26,015 | ) | |||||||
Gain on extinguishment of debt | — | — | — | 15,521 | |||||||||||
Other gain (loss), net | 4,739 | 18,852 | 15,325 | 14,247 | |||||||||||
Total other income (expense), net | (3,093 | ) | 12,064 | (12,568 | ) | 4,646 | |||||||||
Income (loss) before income taxes | 8,168 | 37,422 | (17,408 | ) | (55,511 | ) | |||||||||
(Benefit from) provision for income taxes | (4,705 | ) | 3,964 | 7,805 | 20,532 | ||||||||||
Net income (loss) | $ | 12,873 | $ | 33,458 | $ | (25,213 | ) | $ | (76,043 | ) | |||||
Net income (loss) per common share: | |||||||||||||||
Basic | $ | 0.06 | $ | 0.15 | $ | (0.11 | ) | $ | (0.35 | ) | |||||
Diluted | $ | 0.06 | $ | 0.14 | $ | (0.11 | ) | $ | (0.35 | ) | |||||
Weighted average shares used in computing net income (loss) per common share: | |||||||||||||||
Basic | 230,509 | 219,921 | 226,726 | 216,376 | |||||||||||
Diluted | 233,090 | 258,030 | 226,726 | 216,376 | |||||||||||
GAAP to Non-GAAP Reconciliations
(In thousands, except percentages)
(Unaudited)
Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||
Reconciliation of Gross Profit and Gross Margin: | |||||||||||||||||||||||||||||||||
GAAP as reported | $ | 174,902 | 38.6 | % | $ | 158,320 | 40.3 | % | $ | 180,514 | 37.1 | % | $ | 622,912 | 38.6 | % | $ | 535,776 | 34.1 | % | |||||||||||||
Stock-based compensation expense(1) | 2,328 | 2,515 | 2,763 | 10,000 | 9,485 | ||||||||||||||||||||||||||||
Amortization of acquired intangible assets(2) | — | 3,528 | 4,451 | 10,621 | 23,138 | ||||||||||||||||||||||||||||
Restructuring and other related costs(3) | 2,218 | — | 37 | 2,218 | 222 | ||||||||||||||||||||||||||||
Inventory related charges(4) | — | — | (269 | ) | — | 14,381 | |||||||||||||||||||||||||||
Global distribution center transition costs(5) | — | — | 509 | — | 2,109 | ||||||||||||||||||||||||||||
Warehouse fire loss (recovery)(6) | — | — | — | (1,985 | ) | 2,232 | |||||||||||||||||||||||||||
Non-GAAP as adjusted | $ | 179,448 | 39.6 | % | $ | 164,363 | 41.9 | % | $ | 188,005 | 38.7 | % | $ | 643,766 | 39.9 | % | $ | 587,343 | 37.3 | % | |||||||||||||
Reconciliation of Operating Expenses: | |||||||||||||||||||||||||||||||||
GAAP as reported | $ | 163,641 | $ | 150,665 | $ | 155,156 | $ | 627,752 | $ | 595,933 | |||||||||||||||||||||||
Stock-based compensation expense(1) | 10,429 | 13,230 | 13,834 | 52,150 | 51,530 | ||||||||||||||||||||||||||||
Amortization of acquired intangible assets(2) | 2,256 | 2,976 | 3,581 | 12,344 | 14,576 | ||||||||||||||||||||||||||||
Restructuring and other related costs(3) | 4,096 | 400 | 577 | 6,717 | 10,122 | ||||||||||||||||||||||||||||
Litigation charges (7) | — | — | — | — | 1,350 | ||||||||||||||||||||||||||||
Non-GAAP as adjusted | $ | 146,860 | $ | 134,059 | $ | 137,164 | $ | 556,541 | $ | 518,355 | |||||||||||||||||||||||
Reconciliation of Income (Loss) from Operations and Operating Margin: | |||||||||||||||||||||||||||||||||
GAAP as reported | $ | 11,261 | 2.5 | % | $ | 7,655 | 2.0 | % | $ | 25,358 | 5.2 | % | $ | (4,840 | ) | (0.3 | )% | $ | (60,157 | ) | (3.8 | )% | |||||||||||
Stock-based compensation expense(1) | 12,757 | 15,745 | 16,597 | 62,150 | 61,015 | ||||||||||||||||||||||||||||
Amortization of acquired intangible assets(2) | 2,256 | 6,504 | 8,032 | 22,965 | 37,714 | ||||||||||||||||||||||||||||
Restructuring and other related costs(3) | 6,314 | 400 | 614 | 8,935 | 10,344 | ||||||||||||||||||||||||||||
Inventory related charges(4) | — | — | (269 | ) | — | 14,381 | |||||||||||||||||||||||||||
Global distribution center transition costs(5) | — | — | 509 | — | 2,109 | ||||||||||||||||||||||||||||
Warehouse fire loss (recovery)(6) | — | — | — | (1,985 | ) | 2,232 | |||||||||||||||||||||||||||
Litigation charges(7) | — | — | — | — | 1,350 | ||||||||||||||||||||||||||||
Non-GAAP as adjusted | $ | 32,588 | 7.2 | % | $ | 30,304 | 7.7 | % | $ | 50,841 | 10.5 | % | $ | 87,225 | 5.4 | % | $ | 68,988 | 4.4 | % |
Three months ended | Twelve months ended | |||||||||||||||||||
Reconciliation of Net Income (Loss): | ||||||||||||||||||||
GAAP as reported | $ | 12,873 | $ | (9,413 | ) | $ | 33,458 | $ | (25,213 | ) | $ | (76,043 | ) | |||||||
Stock-based compensation expense(1) | 12,757 | 15,745 | 16,597 | 62,150 | 61,015 | |||||||||||||||
Amortization of acquired intangible assets(2) | 2,256 | 6,504 | 8,032 | 22,965 | 37,714 | |||||||||||||||
Restructuring and other related costs(3) | 6,314 | 400 | 614 | 8,935 | 10,344 | |||||||||||||||
Inventory related charges(4) | — | — | (269 | ) | — | 14,381 | ||||||||||||||
Global distribution center transition costs(5) | — | — | 509 | — | 2,109 | |||||||||||||||
Warehouse fire loss (recovery)(6) | — | — | — | (1,985 | ) | 2,232 | ||||||||||||||
Litigation charges(7) | — | — | — | — | 1,350 | |||||||||||||||
Gain on extinguishment of debt(8) | — | — | — | — | (15,521 | ) | ||||||||||||||
Foreign exchange (gains) losses, net(9) | (4,852 | ) | 7,527 | (18,328 | ) | (14,755 | ) | (12,767 | ) | |||||||||||
Income tax effects(10) | (780 | ) | (894 | ) | (308 | ) | 1,292 | 1,319 | ||||||||||||
Non-GAAP as adjusted | $ | 28,568 | $ | 19,869 | $ | 40,305 | $ | 53,389 | $ | 26,133 | ||||||||||
Reconciliation of Adjusted EBITDA (11): | ||||||||||||||||||||
Non-GAAP net income | $ | 28,568 | $ | 19,869 | $ | 40,305 | $ | 53,389 | $ | 26,133 | ||||||||||
Add: Interest expense, net | 7,832 | 7,062 | 6,788 | 27,893 | 25,122 | |||||||||||||||
Less: Other gain (loss), net | (113 | ) | (13 | ) | 524 | 570 | 1,480 | |||||||||||||
Add: Income tax effects | (3,925 | ) | 3,360 | 4,272 | 6,513 | 19,213 | ||||||||||||||
Add: Depreciation | 17,125 | 13,498 | 11,787 | 55,819 | 46,116 | |||||||||||||||
Non-GAAP as adjusted | $ | 49,713 | $ | 43,802 | $ | 62,628 | $ | 143,044 | $ | 115,104 | ||||||||||
Net Income (Loss) per Common Share: GAAP | ||||||||||||||||||||
Basic | $ | 0.06 | $ | (0.04 | ) | $ | 0.15 | $ | (0.11 | ) | $ | (0.35 | ) | |||||||
Diluted(12) | $ | 0.06 | $ | (0.04 | ) | $ | 0.14 | $ | (0.11 | ) | $ | (0.35 | ) | |||||||
Weighted Average Shares Used in Computing GAAP Net Income (Loss) per Common Share: | ||||||||||||||||||||
Basic | 230,509 | 228,077 | 219,921 | 226,726 | 216,376 | |||||||||||||||
Diluted(12) | 233,090 | 228,077 | 258,030 | 226,726 | 216,376 |
Three months ended | Twelve months ended | |||||||||||||||||||
Net Income per Common Share: Non-GAAP | ||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.09 | $ | 0.18 | $ | 0.24 | $ | 0.12 | ||||||||||
Diluted(13) | $ | 0.12 | $ | 0.08 | $ | 0.16 | $ | 0.23 | $ | 0.12 | ||||||||||
Weighted Average Shares Used in Computing Non-GAAP Net Income per Common Share: | ||||||||||||||||||||
Basic | 230,509 | 228,077 | 219,921 | 226,726 | 216,376 | |||||||||||||||
Diluted(13) | 259,210 | 257,219 | 258,030 | 255,468 | 219,398 |
(1) 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
Three months ended | Twelve months ended | |||||||||||||||||||
Cost of revenue | $ | 2,328 | $ | 2,515 | $ | 2,763 | $ | 10,000 | $ | 9,485 | ||||||||||
Total cost of revenue | 2,328 | 2,515 | 2,763 | 10,000 | 9,485 | |||||||||||||||
Research and development | 4,917 | 5,734 | 6,292 | 22,474 | 23,553 | |||||||||||||||
Sales and marketing | 2,328 | 3,706 | 3,296 | 13,699 | 13,311 | |||||||||||||||
General and administration | 3,184 | 3,790 | 4,246 | 15,977 | 14,666 | |||||||||||||||
Total operating expenses | 10,429 | 13,230 | 13,834 | 52,150 | 51,530 | |||||||||||||||
Total stock-based compensation expense | $ | 12,757 | $ | 15,745 | $ | 16,597 | $ | 62,150 | $ | 61,015 |
(2) Amortization of acquired intangible assets consists of developed technology and customer relationships acquired in connection with the acquisitions of
(3) Restructuring and other related costs are primarily associated with the reduction of headcount, the reduction of operating costs and
(4) Inventory related charges were incurred as a result of the exit from certain product lines in connection with restructuring initiatives. Management has excluded the impact of these charges in arriving at
(5) Global distribution center transition costs were primarily freight and handling costs incurred to transfer and consolidate our inventory from existing warehouses to our global distribution center in southeastern
(6) Warehouse fire losses were incurred due to inventory destroyed in a warehouse fire in the third quarter of fiscal year 2022. Recoveries are recorded when they are probable of receipt. Management has excluded the impact of this loss and subsequent recoveries in arriving at
(7) Litigation charges are associated with the settlement of litigation matters. Management has excluded the impact of this charge in arriving at
(8) Gain on extinguishment of debt was recognized from the accounting for the partial repurchase of the 2024 convertible senior notes. Management has excluded the impact of this gain in arriving at
(9) Foreign exchange (gains) losses, net, have been excluded from
(10) The difference between the GAAP and non-GAAP tax provision is due to the net tax effects of above non-GAAP adjustments. Management believes the exclusion of these tax effects provides a better indication of
(11) Adjusted EBITDA is a non-GAAP supplemental measure of operating performance that does not represent and should not be considered an alternative to operating loss or cash flow from operations, as determined by GAAP.
(12) The GAAP diluted shares include potentially dilutive securities from
For purposes of calculating GAAP diluted earnings per share, we used the following net income (loss) and weighted average common shares outstanding (in thousands, except per share data):
Three months ended | Twelve months ended | |||||||||||||||||||
GAAP net income (loss) for basic earnings per share | $ | 12,873 | $ | (9,413 | ) | $ | 33,458 | $ | (25,213 | ) | $ | (76,043 | ) | |||||||
Interest expense related to the convertible senior notes, net of tax | 104 | — | 1,637 | — | — | |||||||||||||||
GAAP net income (loss) for diluted earnings per share | $ | 12,977 | $ | (9,413 | ) | $ | 35,095 | $ | (25,213 | ) | $ | (76,043 | ) | |||||||
Weighted average basic common shares outstanding | 230,509 | 228,077 | 219,921 | 226,726 | 216,376 | |||||||||||||||
Dilutive effect of restricted and performance share units | 682 | — | 1,574 | — | — | |||||||||||||||
Dilutive effect of employee stock purchase plan | — | — | 18 | — | — | |||||||||||||||
Dilutive effect of 2024 convertible senior notes(a) | 1,899 | — | 10,397 | — | — | |||||||||||||||
Dilutive effect of 2027 convertible senior notes(b) | — | — | 26,120 | — | — | |||||||||||||||
Dilutive effect of 2028 convertible senior notes(c) | — | — | — | — | — | |||||||||||||||
Weighted average dilutive common shares outstanding | 233,090 | 228,077 | 258,030 | 226,726 | 216,376 | |||||||||||||||
GAAP net income (loss) per common share: | ||||||||||||||||||||
Basic | $ | 0.06 | $ | (0.04 | ) | $ | 0.15 | $ | (0.11 | ) | $ | (0.35 | ) | |||||||
Diluted | $ | 0.06 | $ | (0.04 | ) | $ | 0.14 | $ | (0.11 | ) | $ | (0.35 | ) |
(a) For the three- months ended
(b) For each of the three-months ended
(c) For the three-months ended
(13) The non-GAAP diluted shares include the potentially dilutive securities from
For purposes of calculating non-GAAP diluted earnings per share, we used the following net income and weighted average common shares outstanding (in thousands, except per share data):
Three months ended | Twelve months ended | |||||||||||||||||||
Non-GAAP net income for basic earnings per share | $ | 28,568 | $ | 19,869 | $ | 40,305 | $ | 53,389 | $ | 26,133 | ||||||||||
Interest expense related to the convertible senior notes, net of tax | 1,652 | 1,359 | 1,637 | 5,370 | — | |||||||||||||||
Non-GAAP net income for diluted earnings per share | $ | 30,220 | $ | 21,228 | $ | 41,942 | $ | 58,759 | $ | 26,133 | ||||||||||
Weighted average basic common shares outstanding | 230,509 | 228,077 | 219,921 | 226,726 | 216,376 | |||||||||||||||
Dilutive effect of restricted and performance share units | 682 | 1,123 | 1,574 | 1,674 | 2,935 | |||||||||||||||
Dilutive effect of employee stock purchase plan | — | — | 18 | 53 | 87 | |||||||||||||||
Dilutive effect of 2024 convertible senior notes(a) | 1,899 | 1,899 | 10,397 | — | — | |||||||||||||||
Dilutive effect of 2027 convertible senior notes(b) | 26,120 | 26,120 | 26,120 | 26,120 | — | |||||||||||||||
Dilutive effect of 2028 convertible senior notes(c) | — | — | — | 895 | — | |||||||||||||||
Weighted average dilutive common shares outstanding | 259,210 | 257,219 | 258,030 | 255,468 | 219,398 | |||||||||||||||
Non-GAAP net income per common share: | ||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.09 | $ | 0.18 | $ | 0.24 | $ | 0.12 | ||||||||||
Diluted | $ | 0.12 | $ | 0.08 | $ | 0.16 | $ | 0.23 | $ | 0.12 |
(a) For the twelve- months ended
(b) For the twelve-months ended
(c) For the three-months ended
GAAP to Non-GAAP Reconciliations
(In thousands)
(Unaudited)
Free Cash Flow
We define free cash flow as net cash provided by (used in) operating activities in the period minus the purchase of property and equipment made in the period.
Free cash flow is considered a non-GAAP financial measure under the SEC’s rules. Management believes that free cash flow is an important financial measure for use in evaluating
Three months ended | Twelve months ended | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 79,652 | $ | (29,793 | ) | $ | (564 | ) | $ | 49,510 | $ | (37,560 | ) | |||||||
Purchase of property and equipment | (21,414 | ) | (13,318 | ) | (8,303 | ) | (62,314 | ) | (46,053 | ) | ||||||||||
Free cash flow | $ | 58,238 | $ | (43,111 | ) | $ | (8,867 | ) | $ | (12,804 | ) | $ | (83,613 | ) | ||||||
Condensed Consolidated Balance Sheets
(In thousands, except par values)
(Unaudited)
2023 | 2022 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 172,505 | $ | 178,657 | |||
Short-term restricted cash | 517 | 7,274 | |||||
Accounts receivable, net | 381,981 | 419,735 | |||||
Inventory | 431,163 | 374,855 | |||||
Prepaid expenses and other current assets | 129,218 | 152,451 | |||||
Total current assets | 1,115,384 | 1,132,972 | |||||
Property, plant and equipment, net | 206,997 | 172,929 | |||||
Operating lease right-of-use assets | 39,973 | 34,543 | |||||
Intangible assets | 24,819 | 47,787 | |||||
240,566 | 232,663 | ||||||
Long-term restricted cash | 837 | 3,272 | |||||
Other long-term assets | 50,662 | 44,972 | |||||
Total assets | $ | 1,679,238 | $ | 1,669,138 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 299,005 | $ | 304,880 | |||
Accrued expenses and other current liabilities | 110,758 | 141,450 | |||||
Accrued compensation and related benefits | 85,203 | 78,849 | |||||
Short-term debt, net | 25,512 | 510 | |||||
Accrued warranty | 17,266 | 19,747 | |||||
Deferred revenue | 136,248 | 158,501 | |||||
Total current liabilities | 673,992 | 703,937 | |||||
Long-term debt, net | 658,756 | 667,719 | |||||
Long-term accrued warranty | 15,934 | 16,874 | |||||
Long-term deferred revenue | 21,332 | 23,178 | |||||
Long-term deferred tax liability | 1,805 | 2,348 | |||||
Long-term operating lease liabilities | 47,464 | 45,862 | |||||
Other long-term liabilities | 43,364 | 29,573 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, Authorized shares – 25,000 and no shares issued and outstanding | — | — | |||||
Common stock, Authorized shares - 500,000 in 2023 and 500,000 in 2022 Issued and outstanding shares - 230,994 in 2023 and 220,408 in 2022 | 231 | 220 | |||||
Additional paid-in capital | 1,976,014 | 1,901,491 | |||||
Accumulated other comprehensive loss | (34,848 | ) | (22,471 | ) | |||
Accumulated deficit | (1,724,806 | ) | (1,699,593 | ) | |||
Total stockholders' equity | 216,591 | 179,647 | |||||
Total liabilities and stockholders’ equity | $ | 1,679,238 | $ | 1,669,138 | |||
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Twelve months ended | |||||||
Cash Flows from Operating Activities: | |||||||
Net loss | $ | (25,213 | ) | $ | (76,043 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 78,784 | 83,830 | |||||
Non-cash restructuring charges and other related costs | 1,200 | 6,066 | |||||
Amortization of debt issuance costs and discount | 3,862 | 6,109 | |||||
Operating lease expense | 7,464 | 9,421 | |||||
Stock-based compensation expense | 62,150 | 61,015 | |||||
Gain on extinguishment of debt | — | (15,521 | ) | ||||
Other, net | (823 | ) | 1,218 | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 38,511 | (69,024 | ) | ||||
Inventory | (57,864 | ) | (89,527 | ) | |||
Prepaid expenses and other current assets | 9,683 | (34,046 | ) | ||||
Accounts payable | (2,921 | ) | 88,256 | ||||
Accrued expenses and other current liabilities | (40,063 | ) | (24,443 | ) | |||
Deferred revenue | (25,260 | ) | 15,129 | ||||
Net cash provided by (used in) operating activities | 49,510 | (37,560 | ) | ||||
Cash Flows from Investing Activities: | |||||||
Purchase of property and equipment | (62,314 | ) | (46,053 | ) | |||
Net cash used in investing activities | (62,314 | ) | (46,053 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of 2028 Notes | 98,751 | 373,750 | |||||
Repayment of 2024 Notes | (83,446 | ) | (280,842 | ) | |||
Payment of debt issuance cost | (2,108 | ) | (12,451 | ) | |||
Proceeds from asset-based revolving credit facility | 50,000 | 80,000 | |||||
Repayment of asset-based revolving credit facility | (50,000 | ) | (80,000 | ) | |||
Repayment of mortgage payable | (510 | ) | (533 | ) | |||
Principal payments on finance lease obligations | (1,023 | ) | (1,314 | ) | |||
Payment of term license obligation | (10,417 | ) | (7,739 | ) | |||
Proceeds from issuance of common stock | 14,931 | 15,189 | |||||
Tax withholding paid on behalf of employees for net share settlement | (2,465 | ) | (3,714 | ) | |||
Net cash provided by financing activities | 13,713 | 82,346 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (16,253 | ) | (12,051 | ) | |||
Net change in cash, cash equivalents and restricted cash | (15,344 | ) | (13,318 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 189,203 | 202,521 | |||||
Cash, cash equivalents and restricted cash at end of period(1) | $ | 173,859 | $ | 189,203 | |||
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Twelve months ended | |||||||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for income taxes, net | $ | 14,109 | $ | 15,126 | |||
Cash paid for interest | $ | 22,394 | $ | 14,787 | |||
Supplemental schedule of non-cash investing and financing activities: | |||||||
Property and equipment included in accounts payable and accrued liabilities | $ | 10,104 | $ | 7,435 | |||
Transfer of inventory to fixed assets | $ | 1,847 | $ | 9,332 | |||
Unpaid term licenses (included in accounts payable, accrued liabilities and other long-term liabilities) | $ | 23,326 | $ | 9,178 |
(1) Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets (in thousands):
Cash and cash equivalents | $ | 172,505 | $ | 178,657 | |||
Short-term restricted cash | 517 | 7,274 | |||||
Long-term restricted cash | 837 | 3,272 | |||||
Total cash, cash equivalents and restricted cash | $ | 173,859 | $ | 189,203 | |||
Supplemental Financial Information
(Unaudited)
Q1'22 | Q2'22 | Q3'22 | Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | |||||||||||||||||||||||||
GAAP Revenue $(Mil) | $ | 338.9 | $ | 358.0 | $ | 390.4 | $ | 485.9 | $ | 392.1 | $ | 376.2 | $ | 392.4 | $ | 453.5 | ||||||||||||||||
GAAP Gross Margin % | 32.9 | % | 30.5 | % | 34.4 | % | 37.1 | % | 37.5 | % | 38.0 | % | 40.3 | % | 38.6 | % | ||||||||||||||||
Non-GAAP Gross Margin %(1) | 36.2 | % | 36.1 | % | 37.8 | % | 38.7 | % | 38.8 | % | 39.3 | % | 41.9 | % | 39.6 | % | ||||||||||||||||
GAAP Revenue Composition: | ||||||||||||||||||||||||||||||||
Domestic % | 50 | % | 51 | % | 57 | % | 61 | % | 60 | % | 58 | % | 59 | % | 67 | % | ||||||||||||||||
International % | 50 | % | 49 | % | 43 | % | 39 | % | 40 | % | 42 | % | 41 | % | 33 | % | ||||||||||||||||
Customers >10% of Revenue | — | 1 | 1 | 1 | — | 1 | 1 | 1 | ||||||||||||||||||||||||
Cash Related Information: | ||||||||||||||||||||||||||||||||
Cash from Operations $(Mil) | $ | 15.8 | $ | (72.4 | ) | $ | 19.6 | $ | (0.6 | ) | $ | (1.8 | ) | $ | 1.4 | $ | (29.7 | ) | $ | 79.6 | ||||||||||||
Capital Expenditures $(Mil) | $ | 16.1 | $ | 10.6 | $ | 11.0 | $ | 8.3 | $ | 16.8 | $ | 10.8 | $ | 13.3 | $ | 21.4 | ||||||||||||||||
Depreciation & Amortization $(Mil) | $ | 21.6 | $ | 21.1 | $ | 21.3 | $ | 19.8 | $ | 19.6 | $ | 19.8 | $ | 20.0 | $ | 19.4 | ||||||||||||||||
DSOs(2) | 74 | 77 | 66 | 79 | 78 | 79 | 76 | 77 | ||||||||||||||||||||||||
Inventory Metrics: | ||||||||||||||||||||||||||||||||
Raw Materials $(Mil) | $ | 41.2 | $ | 50.4 | $ | 43.5 | $ | 48.7 | $ | 67.6 | $ | 85.4 | $ | 110.4 | $ | 133.6 | ||||||||||||||||
Work in Process $(Mil) | $ | 55.4 | $ | 58.9 | $ | 62.6 | $ | 66.6 | $ | 71.8 | $ | 71.9 | $ | 69.9 | $ | 68.4 | ||||||||||||||||
Finished Goods $(Mil) | $ | 195.1 | $ | 200.3 | $ | 224.9 | $ | 259.6 | $ | 273.6 | $ | 270.1 | $ | 276.6 | $ | 229.2 | ||||||||||||||||
Total Inventory $(Mil) | $ | 291.7 | $ | 309.6 | $ | 331.0 | $ | 374.9 | $ | 413.0 | $ | 427.4 | $ | 456.9 | $ | 431.2 | ||||||||||||||||
Inventory Turns(3) | 3.0 | 3.0 | 3.0 | 3.4 | 2.4 | 2.2 | 2.1 | 2.5 | ||||||||||||||||||||||||
Worldwide Headcount | 3,206 | 3,186 | 3,199 | 3,267 | 3,351 | 3,365 | 3,369 | 3,389 | ||||||||||||||||||||||||
Weighted Average Shares Outstanding (in thousands): | ||||||||||||||||||||||||||||||||
Basic | 212,182 | 215,509 | 217,620 | 219,921 | 222,393 | 225,922 | 228,077 | 230,509 | ||||||||||||||||||||||||
Diluted | 287,588 | 285,968 | 268,927 | 258,030 | 229,404 | 262,712 | 257,219 | 259,210 |
(1) Non-GAAP adjustments include stock-based compensation expenses, amortization of acquired intangible assets, restructuring and other related costs, inventory related charges, global distribution center transition costs and warehouse fire loss (recovery). 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. For reconciliations of prior periods that are not otherwise provided herein, see the prior period earnings releases available on our Investor Relations webpage.
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