0001138639false00011386392023-05-032023-05-03

 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 3, 2023
 
INFINERA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 001-33486 77-0560433
(State or other jurisdiction of
incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
6373 San Ignacio Ave
San Jose,California95119
(Address of principal executive offices, including Zip Code)
(408) 572-5200
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareINFNThe Nasdaq Global Select Market




Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02
Results of Operations and Financial Condition.
On May 3, 2023, Infinera Corporation (the “Company”) issued a press release announcing financial results for its first quarter ended April 1, 2023. The Company also posted on the Investor Relations section of its website (www.infinera.com) investor slides for its first quarter ended April 1, 2023 and outlook for its second quarter ending July 1, 2023. A copy of the press release and investor slides are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K. Information on the Company’s website is not, and will not be deemed, a part of this report or incorporated into this or any other filings that the Company makes with the Securities and Exchange Commission.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished under Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such a filing.
The press release and investor slides furnished herewith as Exhibit 99.1 and Exhibit 99.2 refer to certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is contained in the exhibit in which each such non-GAAP measure appears.
Item 9.01Financial Statements and Exhibits.
(d)Exhibits.




Exhibit No.  Description
99.1  
99.2
104
Cover Page Interactive Data File (formatted as Inline XBRL)




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  INFINERA CORPORATION
Date: May 3, 2023
 By: /s/ NANCY ERBA
  Nancy Erba
Chief Financial Officer





Exhibit 99.1
image1a.jpg

Infinera Corporation Reports First Quarter 2023 Financial Results

San Jose, Calif., May 3, 2023 - Infinera Corporation (NASDAQ: INFN) today released financial results for its first quarter ended April 1, 2023.
GAAP revenue for the quarter was $392.1 million compared to $485.9 million in the fourth quarter of 2022 and $338.9 million in the first quarter of 2022.
GAAP gross margin for the quarter was 37.5% compared to 37.1% in the fourth quarter of 2022 and 32.9% in the first quarter of 2022. GAAP operating margin for the quarter was (2.4)% compared to 5.2% in the fourth quarter of 2022 and (10.8)% in the first quarter of 2022.
GAAP net loss for the quarter was $(8.4) million, or $(0.04) per diluted share, compared to net income of $33.5 million, or $0.14 per diluted share, in the fourth quarter of 2022, and net loss of $(41.9) million, or $(0.20) per diluted share, in the first quarter of 2022.
Non-GAAP gross margin for the quarter was 38.8% compared to 38.7% in the fourth quarter of 2022 and 36.2% in the first quarter of 2022. Non-GAAP operating margin for the quarter was 3.5% compared to 10.5% in the fourth quarter of 2022 and (1.0)% in the first quarter of 2022.
Non-GAAP net income for the quarter was $5.7 million, or $0.02 per diluted share, compared to non-GAAP net income of $40.3 million, or $0.16 per diluted share, in the fourth quarter of 2022, and non-GAAP net loss of $(14.0) million, or $(0.07) per diluted share, in the first quarter of 2022.
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.
Infinera CEO David Heard said, “I am pleased with our solid start to 2023 with revenue, margins, and earnings per share all coming in above the mid-point of our outlook range. Compared to the year-ago quarter, we grew revenue by 16%, above our annual target of 8% for 2023, and expanded gross margin by more than 250bps."
"As we look ahead to the second quarter, we are planning to achieve continued year-over-year revenue growth and margin expansion and to deliver approximately 10% revenue growth in the first half of 2023. We remain focused on the six milestones we laid out at our investor day in March, which includes launching our subsystems products and driving to at least a $1 per share in earnings by 2025-2026."
Financial Outlook
Infinera's outlook for the quarter ending July 1, 2023, is as follows:
•Revenue is expected to be $375 million +/- $20 million.
•GAAP gross margin is expected to be 37.5% +/- 150 bps. Non-GAAP gross margin is expected to be 38.5% +/- 150 bps.
•GAAP operating expenses are expected to be $162 million +/- $2 million. Non-GAAP operating expenses are expected to be $142 million +/- $2 million.
•GAAP operating margin is expected to be (6.0)% +/- 300 bps. Non-GAAP operating margin is expected to be 0.6% +/- 300 bps.
•GAAP net loss per share is expected to be $(0.12) +/- $0.05. Non-GAAP net loss per share is expected to be $(0.03) +/- $0.05.
First Quarter 2023 Investor Slides Available Online
Investor slides reviewing Infinera's first quarter of 2023 financial results will be furnished to the U.S. Securities and Exchange Commission (SEC) on a Current Report on Form 8-K and published on Infinera's Investor Relations website at investors.infinera.com prior to the first quarter of 2023 earnings conference call. Analysts and investors are encouraged to review these slides prior to participating in the conference call webcast. A copy of this press release can be found at investors.infinera.com.


Conference Call Information
Infinera will host a conference call for analysts and investors to discuss its results for the first quarter of 2023 and its outlook for the second quarter of 2023 today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Interested parties may register for the conference call at https://conferencingportals.com/event/VNRCObkD. A live webcast of the conference call will also be accessible from the Events 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:
Amitabh Passi, Head of Investor Relations
Tel. +1 (669) 295-1489
apassi@infinera.com
About Infinera
Infinera is a global supplier of innovative open optical networking solutions and advanced optical semiconductors that enable carriers, cloud operators, governments, and enterprises to scale network bandwidth, accelerate service innovation, and automate network operations. Infinera solutions deliver industry-leading economics and performance in long-haul, submarine, data center interconnect, and metro transport applications. To learn more about Infinera, visit www.infinera.com, follow us on Twitter and LinkedIn, and subscribe for updates. Infinera and the Infinera logo are registered trademarks of Infinera Corporation.
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 future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or the negative of these words or similar terms or expressions that concern Infinera's expectations, strategy, priorities, plans or intentions. Such forward-looking statements in this press release include, without limitation, Infinera’s future business plans and growth opportunities, including progress against strategic priorities and milestones; expectations regarding the launch of Infinera’s subsystems business and its impact on Infinera’s financial results; expectations regarding Infinera’s future performance; expectations regarding Infinera’s revenue growth and margin expansion; and Infinera's financial outlook for the second quarter of 2023. These forward-looking statements are based on estimates and information available to Infinera as of the date hereof and are not guarantees of future performance; 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 demand growth for additional network capacity and the level and timing of customer capital spending; delays in the development, introduction or acceptance of new products or in releasing enhancements to existing products; supply chain and logistics issues, including delays, shortages, components that have been discontinued and increased costs, and Infinera's dependency on sole source, limited source or high-cost suppliers; aggressive business tactics by Infinera’s competitors and new entrants and Infinera's ability to compete in a highly competitive market; product performance problems; the effects of the COVID-19 pandemic or other public health concerns; Infinera's ability to identify, attract, upskill and retain qualified personnel; the effects of customer and supplier consolidation; challenges with our contract manufacturers and other third-party partners; Infinera’s ability to respond to rapid technological changes; failure to accurately forecast Infinera's manufacturing requirements or customer demand; Infinera’s future capital needs and its ability to generate the cash flow or otherwise secure the capital necessary to meet such capital needs; the adverse impact inflation and higher interest rates may have on Infinera by increasing costs beyond what it can recover through price increases; the effect of global and regional economic conditions on Infinera’s business, including effects on purchasing decisions by customers; restrictions to our operations resulting from loan or other credit agreements; the impacts of any restructuring plans or other strategic efforts on our business; the impacts of foreign currency fluctuations; the effective tax rate of Infinera, which may increase or fluctuate; potential dilution from the issuance of additional shares of common stock in connection with the conversion of Infinera's convertible senior notes; Infinera’s ability to protect its intellectual property; claims by others that Infinera infringes on their intellectual property rights; security incidents, such as data breaches or cyber-attacks; Infinera's ability to comply with various rules and regulations, including with respect to export control and trade compliance, environmental, social, governance, privacy and data protection matters; events that are outside of Infinera's control, such as natural disasters, violence or other catastrophic events that could harm Infinera's operations; 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 Infinera's periodic reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on February 27, 2023, 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 financial measures that exclude in certain cases stock-based compensation expenses, amortization of acquired intangible assets, restructuring and other related costs, inventory related charges, global distribution center transition costs, warehouse fire loss (recovery), foreign exchange (gains) losses, net, and income 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, the non-GAAP financial measures presented in this press release 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 revenue, gross margin, operating expenses, operating margin, net income (loss) and net income (loss) per common share 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 table titled “GAAP to Non-GAAP Reconciliations” and related footnotes.
Infinera has included forward-looking non-GAAP information in this press release, including an estimate of certain non-GAAP financial measures for the second quarter of 2023 that excludes stock-based compensation expense, amortization of acquired intangible assets, restructuring and other related costs and warehouse fire loss (recovery). Please see the section titled “GAAP to Non-GAAP Reconciliation of Financial Outlook” below for specific adjustments.





Infinera Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

 Three Months Ended
 April 1, 2023March 26,
2022
Revenue:
Product$314,820 $267,453 
Services77,255 71,421 
Total revenue392,075 338,874 
Cost of revenue:
Cost of product198,674 182,887 
Cost of services42,947 37,959 
Amortization of intangible assets3,556 6,231 
Restructuring and other related costs— 150 
Total cost of revenue245,177 227,227 
Gross profit146,898 111,647 
Operating expenses:
Research and development81,042 73,411 
Sales and marketing41,707 35,824 
General and administrative29,235 27,890 
Amortization of intangible assets3,589 3,746 
Restructuring and other related costs790 7,270 
Total operating expenses156,363 148,141 
Loss from operations(9,465)(36,494)
Other income (expense), net:
Interest income471 53 
Interest expense(6,800)(4,992)
Other gain10,956 6,020 
Total other income, net4,627 1,081 
Loss before income taxes(4,838)(35,413)
Provision for income taxes3,572 6,437 
Net Loss$(8,410)$(41,850)
Net loss per common share:
Basic$(0.04)$(0.20)
Diluted$(0.04)$(0.20)
Weighted average shares used in computing net loss per common share:
Basic222,393 212,182 
Diluted222,393 212,182 

 


Infinera Corporation
GAAP to Non-GAAP Reconciliations
(In thousands, except percentages)
(Unaudited)
 Three Months Ended
April 1, 2023December 31, 2022March 26, 2022
Reconciliation of Gross Profit and Gross Margin:
GAAP as reported$146,898 37.5 %$180,514 37.1 %$111,647 32.9 %
Stock-based compensation expense(1)
2,276 2,763 1,889 
Amortization of acquired intangible assets(2)
3,556 4,451 6,231 
Restructuring and other related costs(3)
— 37 150 
Inventory related charges(4)
— (269)2,667 
Global distribution center transition costs(5)
— 509 — 
Warehouse fire recovery(6)
(510)— — 
Non-GAAP as adjusted$152,220 38.8 %$188,005 38.7 %$122,584 36.2 %
Reconciliation of Operating Expenses:
GAAP as reported$156,363 $155,156 $148,141 
Stock-based compensation expense(1)
13,375 13,834 11,050 
Amortization of acquired intangible assets(2)
3,589 3,581 3,746 
Restructuring and other related costs(3)
790 577 7,270 
Non-GAAP as adjusted$138,609 $137,164 $126,075 
Reconciliation of Income (Loss) from Operations and Operating Margin:
GAAP as reported$(9,465)(2.4)%$25,358 5.2 %$(36,494)(10.8)%
Stock-based compensation expense(1)
15,651 16,597 12,939 
Amortization of acquired intangible assets(2)
7,145 8,032 9,977 
Restructuring and other related costs(3)
790 614 7,420 
Inventory related charges(4)
— (269)2,667 
Global distribution center transition costs(5)
— 509 — 
Warehouse fire recovery(6)
(510)— — 
Non-GAAP as adjusted$13,611 3.5 %$50,841 10.5 %$(3,491)(1.0)%


 Three Months Ended
April 1, 2023December 31, 2022March 26, 2022
Reconciliation of Net Income (Loss):
GAAP as reported$(8,410)$33,458 $(41,850)
Stock-based compensation expense(1)
15,651 16,597 12,939 
Amortization of acquired intangible assets(2)
7,145 8,032 9,977 
Restructuring and other related costs(3)
790 614 7,420 
Inventory related charges(4)
— (269)2,667 
Global distribution center transition costs(5)
— 509 — 
Warehouse fire recovery(6)
(510)— — 
Foreign exchange (gains) losses, net(7)
(9,383)(18,328)(5,589)
Income tax effects(8)
399 (308)416 
Non-GAAP as adjusted$5,682 $40,305 $(14,020)
Reconciliation of Adjusted EBITDA (9):
Non-GAAP net income (loss)$5,682 $40,305 $(14,020)
Non-GAAP interest expense6,800 7,255 4,992 
Non-GAAP income tax effects3,174 4,272 6,021 
Non-GAAP depreciation and amortization12,457 11,787 11,595 
Non-GAAP as adjusted$28,113 $63,619 $8,588 
Net Income (Loss) per Common Share - Basic:
U.S. GAAP as reported$(0.04)$0.15 $(0.20)
Non-GAAP as adjusted$0.03 $0.18 $(0.07)
Net Income (Loss) per Common Share - Diluted:
U.S. GAAP as reported$(0.04)$0.14 $(0.20)
Non-GAAP as adjusted$0.02 $0.16 $(0.07)
Weighted Average Shares Used in Computing Net Income/(Loss) per Common Share:
Basic222,393 219,921 212,182 
Diluted(10)
229,404 258,030 212,182 



(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 January 1, 2006. The following table summarizes the effects of stock-based compensation related to employees and non-employees (in thousands):
 Three Months Ended
April 1, 2023December 31, 2022March 26, 2022
Cost of revenue$2,276 $2,763 $1,889 
   Total cost of revenue2,276 2,763 1,889 
Research and development5,623 6,292 4,841 
Sales and marketing3,594 3,296 2,767 
General and administration4,158 4,246 3,442 
   Total operating expenses13,375 13,834 11,050 
  Total stock-based compensation expense$15,651 $16,597 $12,939 
(2)Amortization of acquired intangible assets consists of developed technology, and customer relationships acquired in connection with the acquisition of Coriant. Amortization of acquired intangible assets also consists of amortization of developed technology and customer relationships acquired in connection with the acquisition of Transmode AB. 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 gross profit, operating expenses 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.
(3)Restructuring and other related costs are primarily associated with Infinera's restructuring of certain international research and development operations, the reduction of operating costs and the reduction of headcount. In addition, this includes accelerated amortization on operating lease right-of-use assets due to the cessation of use of certain facilities. Management has excluded the impact of these charges in arriving at Infinera's non-GAAP results as they are non-recurring in nature and its exclusion provides a better indication of Infinera's underlying business performance.
(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 Infinera's non-GAAP results as they are non-recurring in nature and their exclusion provides a better indication of Infinera's underlying business performance.
(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 Asia. Management has excluded the impact of these costs in arriving at Infinera's non-GAAP results as they are non-recurring in nature and their exclusion provides a better indication of Infinera's underlying business performance.
(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 Infinera's non-GAAP results as it is non-recurring in nature and its exclusion provides a better indication of Infinera's underlying business performance.


(7)Foreign exchange (gains) losses, net, have been excluded from Infinera's non-GAAP results because management believes that this expense is not indicative of ongoing operating performance and its exclusion provides a better indication of Infinera's underlying business performance.
(8)The difference between the GAAP and non-GAAP tax provision is due to the net tax effects of the purchase accounting adjustments, acquisition-related costs and amortization of acquired intangible assets. Management believes the exclusion of these tax effects provides a better indication of Infinera's underlying business performance.
(9)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. Infinera's adjusted EBITDA is calculated by excluding the above non-GAAP adjustments, interest expenses, income tax effects and depreciation and amortization expenses. Management believes that adjusted EBITDA is an important financial measure for use in evaluating Infinera's financial performance, as it measures the ability of our business operations to generate cash.
(10)The non-GAAP diluted shares include the potentially dilutive securities from Infinera's stock-based benefit plans and convertible senior notes excluded from the computation of dilutive net loss per share attributable to common stockholders on a GAAP basis because the effect would have been anti-dilutive. These potentially dilutive securities are added for the computation of diluted net income per share on a non-GAAP basis in periods when Infinera has net income on a non-GAAP basis as its inclusion provides a better indication of Infinera's underlying business performance. Refer to the Diluted earnings per share reconciliation presented below.
For purposes of calculating non-GAAP diluted earnings per share, we used the following net income (loss) and weighted average common shares outstanding (in thousands):
 Three months ended
April 1, 2023December 31, 2022March 26, 2022
Non-GAAP net income (loss) for basic earnings per share$5,682 $40,305 $(14,020)
Interest expense related to the convertible senior notes, net of tax— 1,637 — 
Non-GAAP net income (loss) for diluted earnings per share$5,682 $41,942 $(14,020)
Weighted average basic common shares outstanding222,393 219,921 212,182 
Dilutive effect of restricted and performance share units3,428 1,574 — 
Dilutive effect of employee stock purchase plan— 18 — 
Dilutive effect of 2024 convertible senior notes(1)
— 10,397 — 
Dilutive effect of 2027 convertible senior notes(2)
— 26,120 — 
Dilutive effect of 2028 convertible senior notes(3)
3,583 — — 
Weighted average dilutive common shares outstanding229,404 258,030 212,182 
Non-GAAP net income (loss) per common share:
Basic$0.03 $0.18 $(0.07)
Diluted$0.02 $0.16 $(0.07)

(1)For the three-months ended April 1, 2023, and March 26, 2022, there were 10.4 million and 40.8 million shares, respectively, excluded from the calculation of diluted net income (loss) per share, due to their anti-dilutive effect.
(2)For the three-months ended April 1, 2023, and March 26, 2022, there were 26.1 million and 29.1 million shares, respectively, excluded from the calculation of diluted net income (loss) per share, due to their anti-dilutive effect.
(3)For the three-months ended December 31, 2022 and March 26, 2022, there were no shares excluded from the calculation of diluted net income (loss) per share.


Infinera Corporation
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, net 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 Infinera's financial performance, as it measures our ability to generate additional cash from our business operations. Free cash flow should be considered in addition to, rather than as a substitute for, net loss as a measure of our performance or net cash provided by (used in) operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations. Therefore, we believe it is important to view free cash flow as supplemental to our entire statement of cash flows.

Three Months Ended
April 1, 2023December 31, 2022March 26, 2022
Net cash (used in) provided by operating activities$(1,769)$(564)$15,788 
Purchase of property and equipment(16,809)(8,303)(16,059)
 Free cash flow$(18,578)$(8,867)$(271)



Infinera Corporation
Condensed Consolidated Balance Sheets
(In thousands, except par values)
(Unaudited)
April 1,
2023		December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents$163,765 $178,657 
Short-term restricted cash3,873 7,274 
Accounts receivable, net334,434 419,735 
Inventory412,940 374,855 
Prepaid expenses and other current assets155,228 152,451 
Total current assets1,070,240 1,132,972 
Property, plant and equipment, net177,007 172,929 
Operating lease right-of-use assets34,434 34,543 
Intangible assets40,661 47,787 
Goodwill233,774 232,663 
Long-term restricted cash2,096 3,272 
Other long-term assets40,174 44,972 
Total assets$1,598,386 $1,669,138 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$275,177 $304,880 
Accrued expenses and other current liabilities120,657 141,450 
Accrued compensation and related benefits59,666 78,849 
Short-term debt, net7,148 510 
Accrued warranty18,296 19,747 
Deferred revenue153,287 158,501 
Total current liabilities634,231 703,937 
Long-term debt, net661,739 667,719 
Long-term accrued warranty17,338 16,874 
Long-term deferred revenue22,263 23,178 
Long-term deferred tax liability2,365 2,348 
Long-term operating lease liabilities44,646 45,862 
Other long-term liabilities29,548 29,573 
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 April 1, 2023 and December 31, 2022
Issued and outstanding shares - 224,832 as of April 1, 2023 and 220,408 as of December 31, 2022
225 220 
Additional paid-in capital1,925,060 1,901,491 
Accumulated other comprehensive loss(31,026)(22,471)
Accumulated deficit(1,708,003)(1,699,593)
Total stockholders' equity186,256 179,647 
Total liabilities and stockholders’ equity$1,598,386 $1,669,138 




Infinera Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 Three months ended
 April 1, 2023March 26, 2022
Cash Flows from Operating Activities:
Net loss$(8,410)$(41,850)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization19,602 21,572 
Non-cash restructuring charges and other related costs136 5,390 
Amortization of debt issuance costs847 1,060 
Operating lease expense2,148 2,702 
Stock-based compensation expense15,651 12,939 
Other, net(1,037)789 
Changes in assets and liabilities:
Accounts receivable86,239 81,816 
Inventory(38,555)(1,979)
Prepaid expenses and other current assets1,004 (23,481)
Accounts payable(27,969)(19,829)
Accrued expenses and other current liabilities(44,749)(14,351)
Deferred revenue(6,676)(8,990)
Net cash (used in) provided by operating activities(1,769)15,788 
Cash Flows from Investing Activities:
Purchase of property and equipment(16,809)(16,059)
Net cash used in investing activities(16,809)(16,059)
Cash Flows from Financing Activities:
Repayment of mortgage payable(127)(121)
Payment of debt issuance cost(154)— 
Payment of term license obligation(2,323)(1,418)
Principal payments on finance lease obligations(227)(400)
Proceeds from issuance of common stock8,738 8,875 
Tax withholding paid on behalf of employees for net share settlement(1,100)(524)
Net cash provided by financing activities4,807 6,412 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(5,698)(4,634)
Net change in cash, cash equivalents and restricted cash(19,469)1,507 
Cash, cash equivalents and restricted cash at beginning of period189,203 202,521 
Cash, cash equivalents and restricted cash at end of period(1)
$169,734 $204,028 


















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

Three months ended
April 1, 2023March 26, 2022
Supplemental disclosures of cash flow information:
Cash paid for income taxes$1,963 $1,967 
Cash paid for interest$10,931 $7,137 
Supplemental schedule of non-cash investing and financing activities:
Property and equipment included in accounts payable and accrued liabilities$10,229 $1,477 
Transfer of inventory to fixed assets$1,099 $2,037 
Unpaid term licenses (included in accounts payable, accrued liabilities and other long-term liabilities)$7,134 $9,290 
(1)     Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets:
April 1, 2023March 26, 2022
Cash and cash equivalents$163,765 $191,937 
Short-term restricted cash3,873 6,528 
Long-term restricted cash2,096 5,563 
Total cash, cash equivalents and restricted cash$169,734 $204,028 



Infinera Corporation
Supplemental Financial Information
(Unaudited)

 Q2'21Q3'21Q4'21Q1'22Q2'22Q3'22Q4'22Q1'23
GAAP Revenue $(Mil)$338.2$355.8$400.3$338.9$358.0$390.4$485.9$392.1
GAAP Gross Margin %35.6%33.2%35.6%32.9%30.5%34.4%37.1%37.5%
Non-GAAP Gross Margin %(1)
37.7%38.0%37.2%36.2%36.1%37.8%38.7%38.8%
GAAP Revenue Composition:
Domestic %52%46%42%50%51%57%61%60%
International %48%54%58%50%49%43%39%40%
Customers >10% of Revenue————111—
Cash Related Information:
Cash from Operations $(Mil)$21.3$(13.2)$1.4$15.8$(72.4)$19.6$(0.6)$(1.8)
Capital Expenditures $(Mil)$14.1$6.5$9.1$16.1$10.6$11.0$8.3$16.8
Depreciation & Amortization $(Mil)$18.8$20.9$23.4$21.6$21.1$21.3$19.8$19.6
DSOs(2)
7670827477667978
Inventory Metrics:
Raw Materials $(Mil)$33.3$37.4$39.4$41.2$50.4$43.5$48.7$67.6
Work in Process $(Mil)$55.1$54.4$53.9$55.4$58.9$62.6$66.6$71.8
Finished Goods $(Mil)$185.6$197.8$198.1$195.1$200.3$224.9$259.6$273.6
Total Inventory $(Mil)$274.0$289.6$291.4$291.7$309.6$331.0$374.9$413.0
Inventory Turns(3)
3.13.13.53.03.03.03.42.4
Worldwide Headcount3,1083,2053,2253,2063,1863,1993,2673,351
Weighted Average Shares Outstanding (in thousands):
Basic206,780209,183210,908212,182215,509217,620219,921222,393
Diluted219,459219,262218,009287,588285,968268,927258,030229,404
(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.
(2)Infinera calculates DSO based on 91 days. Fiscal year 2022 was 53 weeks and the fourth quarter of fiscal year 2022 was 98 days. When calculation is based on 98 days, DSO was 85 days for the fourth quarter of fiscal year 2022.
(3)Infinera calculates non-GAAP inventory turns as annualized non-GAAP cost of revenue, which is calculated as GAAP cost of revenue less stock-based compensation expense, amortization of acquired intangible assets, restructuring and other related costs, inventory related charges, global distribution center transition costs and warehouse fire loss (recovery), as illustrated in the reconciliation of gross profit above, divided by the average inventory for the quarter.



Infinera Corporation
GAAP to Non-GAAP Reconciliation of Financial Outlook
(In millions, except percentages)
(Unaudited)

The following amounts represent the midpoint of the expected range:
 Q2'23
Outlook
Reconciliation of Gross Margin:
GAAP37.5 %
Stock-based compensation expense0.5 %
Amortization of acquired intangible assets0.9 %
Warehouse fire recovery(0.4)%
Non-GAAP38.5 %
Reconciliation of Operating Expenses:
GAAP$162.0
Stock-based compensation expense(14.8)
Amortization of acquired intangible assets(3.8)
Restructuring and other related costs(1.4)
Non-GAAP$142.0
Reconciliation of Operating Margin:
GAAP(6.0)%
Stock-based compensation expense4.7 %
Amortization of acquired intangible assets1.9 %
Restructuring and other related costs0.4 %
Warehouse fire recovery(0.4)%
Non-GAAP0.6 %
Reconciliation of Net Loss per Common Share - Basic:
GAAP$(0.12)
Stock-based compensation expense0.07 
Amortization of acquired intangible assets0.02 
Restructuring and other related costs0.01 
Warehouse fire recovery(0.01)
Non-GAAP$(0.03)

FIRST QUARTER 2023 FINANCIAL RESULTS May 3, 2023

 
2 Safe Harbor Forward-Looking Statements This presentation contains forward-looking statements, including those related to Infinera’s expectations regarding its business model and strategy, market opportunities and trends, competition, and customers; capacity growth; market adoption of coherent optical engines; the potential for Infinera’s pluggables to drive market expansion, increase Infinera’s profitability and improve Infinera’s competitiveness in the future; Infinera’s business and growth strategy and related expectations; and Infinera’s financial outlook for the second quarter of 2023. All statements other than statements of historical fact could be deemed forward looking, including, but not limited to, statements made about future market, financial and operating performance; statements regarding future products or technology, as well as the timing to market of any such products or technology; any statements about historical results that may suggest trends for Infinera’s business; and any statements of assumptions underlying any of the items mentioned. These forward-looking statements are based on estimates and information available to Infinera at the time of this presentation and are not guarantees of future performance; 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, among other things, continued demand growth for network capacity; the level and timing of customer capital spending; delays in the development, introduction or acceptance of new products or updates to existing products; supply chain issues, including delays, shortages and increased costs; Infinera's dependency on sole source, limited source or high-cost suppliers; aggressive business tactics by competitors and new entrants; Infinera's ability to compete in a highly competitive market; product performance problems; the effects of the macroeconomic environment on Infinera’s business, stock price and personnel; Infinera's ability to identify, attract, upskill and retain qualified personnel; Infinera's relationships with contract manufacturers and third-party partners; Infinera’s reliance on key customers; the effects of customer and supplier consolidation; the complexity of Infinera’s manufacturing processes for its optical engine and other products; Infinera’s ability to respond to rapid technological changes; failure to accurately forecast Infinera's manufacturing requirements or customer demand; fluctuations in demand, sales cycles and prices for products and services, including discounts given in response to competitive pricing pressures; the partial or complete loss of Infinera's manufacturing facilities, a reduction in yield of PICs or an inability to scale to meet customer demands; Infinera’s future capital needs and its ability to generate the cash flow or otherwise secure the capital necessary to meet such capital needs; the adverse impact of inflation and high interest rates; Infinera's ability to service its debt obligations and pursue its strategic plan; the impacts of any restructuring plans or other strategic efforts on our business; the outcome of research and development investments; risks and compliance obligations relating to Infinera's international operations as well as actions by the U.S. or foreign governments; Infinera’s effective tax rate, which may increase or fluctuate; foreign currency fluctuations; potential dilution from the issuance of additional shares of common stock in connection with the conversion of Infinera's convertible senior notes; Infinera’s ability to protect its intellectual property; claims by others that Infinera infringes on their intellectual property rights; security incidents, such as data breaches or cyber-attacks; Infinera's ability to comply with various rules and regulations, including with respect to export control and trade compliance, environmental, social, governance, privacy and data protection matters; events that are outside of Infinera's control, such as natural disasters, violence or other catastrophic events that could harm Infinera's operations; 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 Infinera's periodic reports filed with the SEC, including its Annual Report on Form 10-K for the year ended on December 31, 2022, as filed with the SEC on February 27, 2023, 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. This presentation includes non-GAAP financial measures such as non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP diluted EPS and free cash flow. We present non- GAAP financial measures in addition to, and not as a substitute for, financial measures calculated in accordance with generally accepted accounting principles (“GAAP”). Non-GAAP measures should not be considered in isolation or as alternatives to GAAP measures. In addition, the non-GAAP measures we use, as presented, may not be comparable to similar measures used by other companies. 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. See the Appendix to this presentation for reconciliations to the most comparable GAAP financial measures. © 2023 Infinera. All rights reserved.

 
3 Q1’23 HIGHLIGHTS STRENGTH ACROSS ICPs AND SERVICE PROVIDERS GROWTH OF ICE6 CUSTOMER BASE EXPANSION OF OPEN XR FORUM C U S T O M E R S U C C E S S REVENUE GROWTH +16% YoY GROSS MARGIN +450BPS YoY (+260BPS ON A NON -GAAP BASIS) OPERATING MARGIN +840BPS YoY (+450BPS ON A NON -GAAP BASIS) F I N A N C I A L S WINNING 8 X 4 X 1 STRATEGY COMPELLING TARGET BUSINESS MODEL BUSINESS STRUCTURE ALIGNED WITH STRATEGY V A L U E D R I V E R S STRENGTH IN LINE SYSTEMS CONTINUED YoY GROWTH IN GX -SERIES 400G ZR+ PLUGGABLES NOW AVAILABLE FOR SALE TO CUSTOMERS S O L U T I O N S © 2023 Infinera. All rights reserved.

 
4 * See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation. R E V E N U E : ST R E N G T H I N U SA A C R O S S S E R V I C E P R O V I D E R S & I C P s1 G R O S S M A R G I N : P O S I T I V E I M PA C T O F I C E 6 , S O M E R E L I E F I N S U P P LY C O ST S , PA R T I A L LY O F F S E T BY H I G H E R L I N E SY ST E M S 2 O P E R AT I N G M A R G I N : P O S I T I V E I M PA C T O F H I G H E R R E V E N U E & O P E R AT I N G L E V E R A G E4 O P E X : F O C U S E D I N V E ST M E N T S I N M & S A N D R & D3 Y E A R - O V E R - Y E A R T R E N D S F I N A N C I A L S FINANCIALS & COMPARISON TO PRIOR PERIODS © 2023 Infinera. All rights reserved. M&S = Marketing & Sales R&D = Research & Development FINANCIAL METRICS QoQ YoY CHANGE CHANGE Revenue ($M) $339 $486 $392 -19% 16% Gross Margin % * 36.2% 38.7% 38.8% 10bps 260bps Opex ($M) * $126 $137 $139 1% 10% Operating Margin % * -1.0% 10.5% 3.5% -700bps 450bps Diluted EPS * ($0.07) $0.16 $0.02 ($0.14) $0.09 Q1'22 Q4’22 Q1'23

 
5 QoQ YoY CHANGE CHANGE Region United States $170.2 $296.5 $237.0 -20% 39% Other Americas $ 20.9 $ 26.4 $ 20.6 -22% -1% Europe, Middle East and Africa $108.6 $ 98.7 $ 93.3 -5% -14% Asia Pacific $ 39.2 $ 64.4 $ 41.2 -36% 5% Total $338.9 $485.9 $392.1 -19% 16% Channel Direct $260.9 $369.9 $262.9 -29% 1% Indirect $ 78.0 $116.0 $129.2 11% 66% Total $338.9 $485.9 $392.1 -19% 16% Vertical Tier 1 $ 87.4 $135.4 $ 78.4 -42% -10% Other Service Provider $159.3 $203.2 $176.5 -13% 11% ICP $ 71.6 $132.7 $117.7 -11% 64% Cable $ 20.6 $ 14.7 $ 19.5 33% -5% Total $338.9 $485.9 $392.1 -19% 16% Q1'22 Q4’22 Q1'23 F I N A N C I A L S REVENUE BY REGION & BY VERTICAL © 2023 Infinera. All rights reserved. GAAP revenue in $ millions; totals may not add up exactly due to rounding. A M E R I C A S : F O O T P R I N T E X PA N S I O N AT I C P s , T I E R 1 & 2 G R O W T H , D ES I G N W I N S1 E M E A : Yo Y I M PA C T E D BY F X , T I M I N G O F P R O J E C T S , I N V E N T O R Y A D J U ST M E N T S2 T I E R 1 : C O N T I N U E D D E S I G N W I N S , T I M I N G O F P R O J E C T S , I N V E N T O R Y A D J U ST M E N T S4 A PA C : ST E A DY G R O W T H , S U S B E A ST R E N G T H3 Y E A R - O V E R - Y E A R T R E N D S

 
6 O P T I C A L N E T W O R K I N G I N D U S T R Y 4 KEY DEMAND DRIVERS C O H E R E N T O P T I C A L E N G I N E S COREEDGE COHERENT 5G 80-90% Of the Optical Market will Use Coherent Optical Engines by 2025 S H I F T T O O P E N OPEN LINE SYSTEMS XPONDERS R E L E N T L E S S C A P A C I T Y G R O W T H 30% 35% 40% 45% 50% 5 YEAR BANDWIDTH CAGR 35%+ CAGR Source: Cisco VNI E C O S Y S T E M D I S R U P T I O N CAGR = Compound Annual Growth Rate © 2023 Infinera. All rights reserved. Source: Cignal AI, Dell’Oro, Omdia, LightCounting and Infinera

 
7 I N F I N E R A ’ S 8 x 4 x 1 S T R A T E G Y STRATEGY ALIGNED WITH KEY GROWTH AREAS © 2023 Infinera. All rights reserved. Source: Cignal AI, Dell’Oro, Omdia, Infinera INDUSTRY-LEADING PERFORMANCE 8 4 1 VERTICALLY INTEGRATED MODULAR SOLUTIONS DISRUPT W/ POINT-TO-POINT AND POINT-TO- MULTIPOINT PLUGGABLES VERTICALLY INTEGRATED MONOLITHIC INDIUM PHOSPHIDE BASED PHOTONIC INTEGRATED CIRCUIT UNIQUE CAPABILITIES LEADING PERFORMANCE & OPERATIONS, SUPERIOR MANUFACTURABILITY, OUTSTANDING CUSTOMER VALUE MAXIMUM VALUE C O R E M E T R O A C C E S S 00G00G+ 00G ICE6 ICE7 ICE8 GX PORTFOLIO ICE-X PLUGGABLES EMBEDDED ENGINES POINT-TO-POINT PLUGGABLES POINT-TO-MULTIPOINT PLUGGABLES OPEN SOLUTIONS T R A N S C E N D SOFTWARE & AUTOMATION

 
8© 2023 Infinera. All rights reserved. OUR PRIORITIES INVEST IN MARGIN- ACCRETIVE TECHNOLOGIES CONTINUE TO DRIVE OPERATIONAL EFFICIENCIES ENHANCE SHAREHOLDER VALUE THROUGH GROWTH & PROFITABILITY EXPAND GO-TO-MARKET INVESTMENT TO GROW MARKET SHARE YoY comparisons reference the midpoint of Q2’23 outlook compared to Q2’22 actuals. *See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation. **Q2’23 Revenue outlook, and the corresponding YoY comparison, are on a GAAP basis. F I N A N C I A L S Q2’23 NON-GAAP* OUTLOOK GROSS MARGIN % 38.5% +/- 150bps +240bps YoY OPERATING MARGIN % 0.6% +/- 300bps +20bps YoY $375 Million +/- $20M +5% YoY REVENUE** OPEX $142 Million +/- $2M +11% YoY EARNINGS PER SHARE ($0.03) +/- $0.05 +$0.02 YoY

 
APPENDIX

 
10 © 2023 Infinera. All rights reserved. Company Confidential. © 2023 Infinera. All rights reserved. DILUTED EARNINGS PER SHARE RECONCILIATION (1) For the three-months ended April 1, 2023, and March 26, 2022, there were 10.4 million and 40.8 million shares, respectively, excluded from the calculation of diluted net income (loss) per share, due to their anti-dilutive effect. (2) For the three-months ended April 1, 2023, and March 26, 2022, there were 26.1 million and 29.1 million shares, respectively, excluded from the calculation of diluted net income (loss) per share, due to their anti-dilutive effect. (3) For the three-months ended December 31, 2022, and March 26, 2022, there were no shares excluded from the calculation of diluted net income (loss) per share. April 1, 2023 December 31, 2022 March 26, 2022 Non-GAAP net income (loss) for basic earnings per share $ 5,682 $ 40,305 $ (14,020) Interest expense related to the convertible senior notes, net of tax - 1,637 - Non-GAAP net income (loss) for diluted earnings per share $ 5,682 $ 41,942 $ (14,020) Weighted average basic common shares outstanding 222,393 219,921 212,182 Dilutive effect of restricted and performance share units 3,428 1,574 - Dilutive effect of employee stock purchase plan - 18 - Dilutive effect of the 2024 convertible senior notes (1) - 10,397 - Dilutive effect of the 2027 convertible senior notes (2) - 26,120 - Dilutive effect of the 2028 convertible senior notes (3) 3,583 - - Weighted average dilutive common shares outstanding 229,404 258,030 212,182 Non-GAAP net income (loss) per common share: Basic $ 0.03 $ 0.18 $ (0.07) Diluted $ 0.02 $ 0.16 $ (0.07) Three months ended

 
11 1. TOTALS MAY NOT ADD UP DUE TO ROUNDING. 2. Q2’23 OUTLOOK REPRESENTS THE MIDPOINT OF THE EXPECTED RANGES. 1. NON-GAAP METRICS ARE RECONCILED TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL METRIC. 2. FOR A COMPLETE RECONCILIATION OF OTHER PERIOD RESULTS, SEE PRIOR QUARTERLY EARNINGS RELEASES. © 2023 Infinera. All rights reserved. Company Confidential. © 2023 Infinera. All rights reserved. GAAP TO NON-GAAP RECONCILIATION N O T E S Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Press Release Actual Actual Actual Actual Actual Outlook Outlook Reconciliation of Gross Margin: U.S. GAAP as reported 32.9% 30.5% 34.4% 37.1% 37.5% 37.5% 37.5% +/- 1.5% Stock-based compensation expense 0.7% 0.7% 0.6% 0.7% 0.5% 0.5% Amortization of acquired intangible assets 1.8% 1.8% 1.6% 0.9% 0.9% 0.9% Restructuring and other related costs 0.0% 0.0% 0.0% 0.0% - - Inventory related charges 0.8% 3.1% 0.2% -0.1% - - Global distribution center transition costs - - 0.4% 0.1% - - Warehouse fire loss (recovery) - - 0.6% - -0.1% -0.4% Non-GAAP as adjusted 36.2% 36.1% 37.8% 38.7% 38.8% 38.5% 38.5% +/- 1.5% Reconciliation of Operating Expenses: U.S. GAAP as reported 148.1$ 148.9$ 143.7$ 155.2$ 156.4$ 162.0$ $162M +/-$2M Stock-based compensation expense (11.0)$ (15.1)$ (11.5)$ (13.8)$ (13.4)$ (14.8)$ Amortization of acquired intangible assets (3.7)$ (3.7)$ (3.6)$ (3.6)$ (3.6)$ (3.8)$ Restructuring and other related costs (7.3)$ (1.1)$ (1.1)$ (0.6)$ (0.8)$ (1.4)$ Litigation charges -$ (1.4)$ -$ -$ -$ -$ Non-GAAP as adjusted 126.1$ 127.6$ 127.5$ 137.2$ 138.6$ 142.0$ $142M +/- $2M Reconciliation of Operating Margin: U.S. GAAP as reported -10.8% -11.1% -2.4% 5.2% -2.4% -6.0% -6% +/- 3.0% Stock-based compensation expense 3.9% 5.0% 3.5% 3.5% 4.0% 4.7% Amortization of acquired intangible assets 2.9% 2.7% 2.6% 1.7% 1.8% 1.9% Restructuring and other related costs 2.2% 0.3% 0.3% 0.1% 0.2% 0.4% Inventory related charges 0.8% 3.1% 0.2% -0.1% - - Global distribution center transition costs - - 0.4% 0.1% - - Warehouse fire loss (recovery) - - 0.6% - -0.1% -0.4% Litigation charges - 0.4% - - - - Non-GAAP as adjusted -1.0% 0.4% 5.2% 10.5% 3.5% 0.6% 0.6% +/- 3.0% Reconciliation of Net Income/(Loss) per Common Share: U.S. GAAP as reported (0.20)$ (0.26)$ (0.05)$ 0.15$ (0.04)$ (0.12)$ (0.12) +/- 0.05 Stock-based compensation expense 0.07$ 0.07$ 0.06$ 0.07$ 0.07$ 0.07$ Amortization of acquired intangible assets 0.05$ 0.05$ 0.05$ 0.04$ 0.03$ 0.02$ Restructuring and other related costs 0.03$ 0.01$ 0.01$ 0.00$ 0.00$ 0.01$ Inventory related charges 0.01$ 0.05$ 0.00$ 0.00$ -$ -$ Global distribution center transition costs -$ -$ 0.01$ 0.00$ -$ -$ Warehouse fire loss (recovery) -$ -$ 0.01$ -$ 0.00$ (0.01)$ Litigation charges -$ 0.01$ -$ -$ -$ -$ Gain on extinguishment of debt -$ -$ (0.07)$ -$ -$ -$ Foreign exchange (gains) losses, net (0.03)$ 0.02$ 0.03$ (0.08)$ (0.03)$ -$ Income tax effects 0.00$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00$ Non-GAAP as adjusted (0.07)$ (0.05)$ 0.05$ 0.18$ 0.03$ (0.03)$ (0.03) +/- 0.05

 
12 1. TOTALS MAY NOT ADD UP DUE TO ROUNDING. 2. NON-GAAP METRICS ARE RECONCILED TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL METRIC. 3. 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. 4. FOR A COMPLETE RECONCILIATION OF OTHER PERIOD RESULTS, SEE PRIOR QUARTERLY EARNINGS RELEASES. © 2023 Infinera. All rights reserved. Company Confidential. © 2023 Infinera. All rights reserved. GAAP TO NON-GAAP and FREE CASH FLOW RECONCILIATION N O T E S Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Actual Actual Actual Actual Actual Reconciliation of Adjusted EBITDA: Non-GAAP Net Income (Loss) (14.0)$ (10.1)$ 9.9$ 40.3$ 5.7$ Non-GAAP Interest expense 5.0$ 7.3$ 6.6$ 7.3$ 6.8$ Non-GAAP Income tax effects 6.0$ 4.7$ 4.2$ 4.3$ 3.2$ Non-GAAP Depreciation and Amortization 11.6$ 11.2$ 11.5$ 11.7$ 12.4$ Non-GAAP as adjusted 8.6$ 13.1$ 32.2$ 63.6$ 28.1$ Reconciliation of Free Cash Flow U.S. GAAP: Net cash provided by (used in) operating activities 15.8$ (72.4)$ 19.6$ (0.6)$ (1.8)$ Purchase of property and equipment (16.1)$ (10.6)$ (11.0)$ (8.3)$ (16.8)$ Free Cash Flow (0.3)$ (83.0)$ 8.6$ (8.9)$ (18.6)$

 
Thank You

 

v3.23.1
Cover
May 03, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 03, 2023
Entity Registrant Name INFINERA CORPORATION
Entity Incorporation, State or Country Code DE
Entity File Number 001-33486
Entity Tax Identification Number 77-0560433
Entity Address, Address Line One 6373 San Ignacio Ave
Entity Address, City or Town San Jose,
Entity Address, State or Province CA
Entity Address, Postal Zip Code 95119
City Area Code 408
Local Phone Number 572-5200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001138639
Amendment Flag false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol INFN
Security Exchange Name NASDAQ 

{
 "instance": {
  "infn-20230503.htm": {
   "axisCustom": 0,
   "axisStandard": 0,
   "baseTaxonomies": {
    "http://xbrl.sec.gov/dei/2022": 22
   },
   "contextCount": 1,
   "dts": {
    "inline": {
     "local": [
      "infn-20230503.htm"
     ]
    },
    "labelLink": {
     "local": [
      "infn-20230503_lab.xml"
     ]
    },
    "presentationLink": {
     "local": [
      "infn-20230503_pre.xml"
     ]
    },
    "schema": {
     "local": [
      "infn-20230503.xsd"
     ],
     "remote": [
      "http://www.xbrl.org/2003/xbrl-instance-2003-12-31.xsd",
      "http://www.xbrl.org/2003/xbrl-linkbase-2003-12-31.xsd",
      "http://www.xbrl.org/2003/xl-2003-12-31.xsd",
      "http://www.xbrl.org/2003/xlink-2003-12-31.xsd",
      "http://www.xbrl.org/2005/xbrldt-2005.xsd",
      "http://www.xbrl.org/lrr/role/negated-2009-12-16.xsd",
      "http://www.xbrl.org/lrr/role/net-2009-12-16.xsd",
      "https://www.xbrl.org/dtr/type/2020-01-21/types.xsd",
      "https://xbrl.sec.gov/dei/2022/dei-2022.xsd"
     ]
    }
   },
   "elementCount": 23,
   "entityCount": 1,
   "hidden": {
    "http://xbrl.sec.gov/dei/2022": 2,
    "total": 2
   },
   "keyCustom": 0,
   "keyStandard": 22,
   "memberCustom": 0,
   "memberStandard": 0,
   "nsprefix": "infn",
   "nsuri": "http://www.infinera.com/20230503",
   "report": {
    "R1": {
     "firstAnchor": {
      "ancestors": [
       "span",
       "div",
       "body",
       "html"
      ],
      "baseRef": "infn-20230503.htm",
      "contextRef": "i3bf02715872e4d41a3e6920885770413_D20230503-20230503",
      "decimals": null,
      "first": true,
      "lang": "en-US",
      "name": "dei:DocumentType",
      "reportCount": 1,
      "unique": true,
      "unitRef": null,
      "xsiNil": "false"
     },
     "groupType": "document",
     "isDefault": "true",
     "longName": "0000001 - Document - Cover",
     "menuCat": "Cover",
     "order": "1",
     "role": "http://www.infinera.com/role/Cover",
     "shortName": "Cover",
     "subGroupType": "",
     "uniqueAnchor": {
      "ancestors": [
       "span",
       "div",
       "body",
       "html"
      ],
      "baseRef": "infn-20230503.htm",
      "contextRef": "i3bf02715872e4d41a3e6920885770413_D20230503-20230503",
      "decimals": null,
      "first": true,
      "lang": "en-US",
      "name": "dei:DocumentType",
      "reportCount": 1,
      "unique": true,
      "unitRef": null,
      "xsiNil": "false"
     }
    }
   },
   "segmentCount": 0,
   "tag": {
    "dei_AmendmentFlag": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Boolean flag that is true when the XBRL content amends previously-filed or accepted submission.",
        "label": "Amendment Flag",
        "terseLabel": "Amendment Flag"
       }
      }
     },
     "localname": "AmendmentFlag",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "booleanItemType"
    },
    "dei_CityAreaCode": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Area code of city",
        "label": "City Area Code",
        "terseLabel": "City Area Code"
       }
      }
     },
     "localname": "CityAreaCode",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "normalizedStringItemType"
    },
    "dei_CoverAbstract": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Cover page.",
        "label": "Cover [Abstract]",
        "terseLabel": "Cover [Abstract]"
       }
      }
     },
     "localname": "CoverAbstract",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "xbrltype": "stringItemType"
    },
    "dei_DocumentPeriodEndDate": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period.  The format of the date is YYYY-MM-DD.",
        "label": "Document Period End Date",
        "terseLabel": "Document Period End Date"
       }
      }
     },
     "localname": "DocumentPeriodEndDate",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "dateItemType"
    },
    "dei_DocumentType": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.",
        "label": "Document Type",
        "terseLabel": "Document Type"
       }
      }
     },
     "localname": "DocumentType",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "submissionTypeItemType"
    },
    "dei_EntityAddressAddressLine1": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Address Line 1 such as Attn, Building Name, Street Name",
        "label": "Entity Address, Address Line One",
        "terseLabel": "Entity Address, Address Line One"
       }
      }
     },
     "localname": "EntityAddressAddressLine1",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "normalizedStringItemType"
    },
    "dei_EntityAddressCityOrTown": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Name of the City or Town",
        "label": "Entity Address, City or Town",
        "terseLabel": "Entity Address, City or Town"
       }
      }
     },
     "localname": "EntityAddressCityOrTown",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "normalizedStringItemType"
    },
    "dei_EntityAddressPostalZipCode": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Code for the postal or zip code",
        "label": "Entity Address, Postal Zip Code",
        "terseLabel": "Entity Address, Postal Zip Code"
       }
      }
     },
     "localname": "EntityAddressPostalZipCode",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "normalizedStringItemType"
    },
    "dei_EntityAddressStateOrProvince": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Name of the state or province.",
        "label": "Entity Address, State or Province",
        "terseLabel": "Entity Address, State or Province"
       }
      }
     },
     "localname": "EntityAddressStateOrProvince",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "stateOrProvinceItemType"
    },
    "dei_EntityCentralIndexKey": {
     "auth_ref": [
      "r1"
     ],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.",
        "label": "Entity Central Index Key",
        "terseLabel": "Entity Central Index Key"
       }
      }
     },
     "localname": "EntityCentralIndexKey",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "centralIndexKeyItemType"
    },
    "dei_EntityEmergingGrowthCompany": {
     "auth_ref": [
      "r1"
     ],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Indicate if registrant meets the emerging growth company criteria.",
        "label": "Entity Emerging Growth Company",
        "terseLabel": "Entity Emerging Growth Company"
       }
      }
     },
     "localname": "EntityEmergingGrowthCompany",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "booleanItemType"
    },
    "dei_EntityFileNumber": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.",
        "label": "Entity File Number",
        "terseLabel": "Entity File Number"
       }
      }
     },
     "localname": "EntityFileNumber",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "fileNumberItemType"
    },
    "dei_EntityIncorporationStateCountryCode": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Two-character EDGAR code representing the state or country of incorporation.",
        "label": "Entity Incorporation, State or Country Code",
        "terseLabel": "Entity Incorporation, State or Country Code"
       }
      }
     },
     "localname": "EntityIncorporationStateCountryCode",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "edgarStateCountryItemType"
    },
    "dei_EntityRegistrantName": {
     "auth_ref": [
      "r1"
     ],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.",
        "label": "Entity Registrant Name",
        "terseLabel": "Entity Registrant Name"
       }
      }
     },
     "localname": "EntityRegistrantName",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "normalizedStringItemType"
    },
    "dei_EntityTaxIdentificationNumber": {
     "auth_ref": [
      "r1"
     ],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.",
        "label": "Entity Tax Identification Number",
        "terseLabel": "Entity Tax Identification Number"
       }
      }
     },
     "localname": "EntityTaxIdentificationNumber",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "employerIdItemType"
    },
    "dei_LocalPhoneNumber": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Local phone number for entity.",
        "label": "Local Phone Number",
        "terseLabel": "Local Phone Number"
       }
      }
     },
     "localname": "LocalPhoneNumber",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "normalizedStringItemType"
    },
    "dei_PreCommencementIssuerTenderOffer": {
     "auth_ref": [
      "r3"
     ],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.",
        "label": "Pre-commencement Issuer Tender Offer",
        "terseLabel": "Pre-commencement Issuer Tender Offer"
       }
      }
     },
     "localname": "PreCommencementIssuerTenderOffer",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "booleanItemType"
    },
    "dei_PreCommencementTenderOffer": {
     "auth_ref": [
      "r4"
     ],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.",
        "label": "Pre-commencement Tender Offer",
        "terseLabel": "Pre-commencement Tender Offer"
       }
      }
     },
     "localname": "PreCommencementTenderOffer",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "booleanItemType"
    },
    "dei_Security12bTitle": {
     "auth_ref": [
      "r0"
     ],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Title of a 12(b) registered security.",
        "label": "Title of 12(b) Security",
        "terseLabel": "Title of 12(b) Security"
       }
      }
     },
     "localname": "Security12bTitle",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "securityTitleItemType"
    },
    "dei_SecurityExchangeName": {
     "auth_ref": [
      "r2"
     ],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Name of the Exchange on which a security is registered.",
        "label": "Security Exchange Name",
        "terseLabel": "Security Exchange Name"
       }
      }
     },
     "localname": "SecurityExchangeName",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "edgarExchangeCodeItemType"
    },
    "dei_SolicitingMaterial": {
     "auth_ref": [
      "r5"
     ],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.",
        "label": "Soliciting Material",
        "terseLabel": "Soliciting Material"
       }
      }
     },
     "localname": "SolicitingMaterial",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "booleanItemType"
    },
    "dei_TradingSymbol": {
     "auth_ref": [],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Trading symbol of an instrument as listed on an exchange.",
        "label": "Trading Symbol",
        "terseLabel": "Trading Symbol"
       }
      }
     },
     "localname": "TradingSymbol",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "tradingSymbolItemType"
    },
    "dei_WrittenCommunications": {
     "auth_ref": [
      "r6"
     ],
     "lang": {
      "en-us": {
       "role": {
        "documentation": "Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.",
        "label": "Written Communications",
        "terseLabel": "Written Communications"
       }
      }
     },
     "localname": "WrittenCommunications",
     "nsuri": "http://xbrl.sec.gov/dei/2022",
     "presentation": [
      "http://www.infinera.com/role/Cover"
     ],
     "xbrltype": "booleanItemType"
    }
   },
   "unitCount": 0
  }
 },
 "std_ref": {
  "r0": {
   "Name": "Exchange Act",
   "Number": "240",
   "Publisher": "SEC",
   "Section": "12",
   "Subsection": "b",
   "role": "http://www.xbrl.org/2003/role/presentationRef"
  },
  "r1": {
   "Name": "Exchange Act",
   "Number": "240",
   "Publisher": "SEC",
   "Section": "12",
   "Subsection": "b-2",
   "role": "http://www.xbrl.org/2003/role/presentationRef"
  },
  "r2": {
   "Name": "Exchange Act",
   "Number": "240",
   "Publisher": "SEC",
   "Section": "12",
   "Subsection": "d1-1",
   "role": "http://www.xbrl.org/2003/role/presentationRef"
  },
  "r3": {
   "Name": "Exchange Act",
   "Number": "240",
   "Publisher": "SEC",
   "Section": "13e",
   "Subsection": "4c",
   "role": "http://www.xbrl.org/2003/role/presentationRef"
  },
  "r4": {
   "Name": "Exchange Act",
   "Number": "240",
   "Publisher": "SEC",
   "Section": "14d",
   "Subsection": "2b",
   "role": "http://www.xbrl.org/2003/role/presentationRef"
  },
  "r5": {
   "Name": "Exchange Act",
   "Number": "240",
   "Publisher": "SEC",
   "Section": "14a",
   "Subsection": "12",
   "role": "http://www.xbrl.org/2003/role/presentationRef"
  },
  "r6": {
   "Name": "Securities Act",
   "Number": "230",
   "Publisher": "SEC",
   "Section": "425",
   "role": "http://www.xbrl.org/2003/role/presentationRef"
  }
 },
 "version": "2.2"
}