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Infinera Corporation Message Board

  • shrewd_curmudgeon shrewd_curmudgeon Feb 6, 2013 9:43 AM Flag

    Over 8 million in cash flow

    In Q4, Infinera posted +$8.3 million in cash flow from operations. This company is progressing nicely. It is a great opportunity around $7/sh. Adding more.

    Sentiment: Strong Buy

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    • Yes, in the traditionally strong Q4 they were able to achieve positive cash flow. Check out the full year 2012. Q1 $(5.8)M, Q2 $(22.7)M, Q3 $(29.3), Q4 $8.3M = negative $49.5M. Based on their guidance they will be back to negative in Q1.

      • 2 Replies to iluvglw
      • Yes, I see what you mean. The trend is much better. In the prior Q4, Infinera had cash flow from operations of #$%$1 million. And this recent Q4, the cash flow from operations was +$8.3 million. Year-over-year comparisons are key. It is already known that Q1 is usually softer than Q4. Their guidance did not actually say cash flow would be negative in Q1. It said revenues would be in the range of $115 million to $125 million (instead of the $104.7 million they posted in the prior Q1). What do you think their cash flow will be for the full year of 2013? It likely will be positive.

        Sentiment: Strong Buy

      • Yes but that has been well known for some time. The case for INFN is that it will show some modest losses for a while longer as it ramps up DTN-X, then assuming DTN-X achieves critical mass, the company becomes profitable and shows rapid revenue and earnings growth going forward.

        One can believe or not believe in that scenario. But the point is, what determines whether INFN is successful or not is not whether they make profits in the early stage of their ramp up of DTN-X, something nobody expects, it is whether DTN-X achieves broad market acceptance as the technology of choice for its particular uses.

        I am optimistic that it will, but I do not consider it a sure thing.

    • It isa better op at 6.25 that the hype of per-earnings has relented to trudging ahead of the general business of marketing and service.

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