Link to article explaining that ?
I couldn't find it, based on Googling Telcordia, Ericsson, OSMINE.
I had glanced at the article and assumed wrong that he was comparing Y-o-Y.
It would have been tripling, in that case
Sorry to trigger so much OFFENSE. You must be a PhD.
Alcatel expects telecoms to spend big on backhaul and at the core (Infinera's addressable market)
Alcatel-Lucent Preps Submarine IPO, Expects Core Growth
Ray Le Maistre, Editor-in-chief
"What was really bold about today's statement, though, was the CEO's expectation that its core networking business, which includes IP networking, optical transport and platforms (cloud, SDN, NFV), would generate revenues of #$%$7 billion ($9.4 billion) in 2015. This business achieved revenues of #$%$2.72 billion ($3.65 billion) during the first half of 2014, so the vendor is clearly optimistic of a significant increase in sales in the coming 18 months if it is to reach that target.
Combes said he expects operators to start shifting their capex focus more towards backhaul and core networks following a sustained period of investment in access capabilities, and that he expects Alcatel-Lucent to be winning new business from target customer sectors such as cable and Web services. (See Cable Is Key to 'New' Alcatel-Lucent.)
He also noted that the vendor's SDN-focused business, Nuage Networks , is picking up new business – three new customer wins during the second quarter, taking the total to eight – and targeting new business with data center and financial services companies. In addition, AlcaLu is currently engaged in 55 proof-of-concept NFV trials, in addition to the virtual RAN engagement it has landed at Etihad Etisalat Co.
Following Infinera's past naming convention, they might dub this new Metro product ATN-X, rather than the analyst's DTN-M musing. Whatever, just get it out there and selling. That will take a lot of criticism off the Company's dependence on LH and cure analysts' deaf ear towards Dr Welch's comments that the DTN-X is being already deployed as a high capacity Metro node.
Hope their September Insight Infinera 2014 deep dive indeed unveils an "DTN-M" rack of hardware almost ready for the Metro market. If they follow their DTN-X debut, the basic system will be ready to go in early 2015, with plenty of provision to add flexible functionality. They'll submit a system for six months or so of OSMINE, unless Ericsson has persuaded the RBOC's to toss out that certification requirement.
Infinera's Q2 revenue rises to $165M as DTN-X customer adoption grows
July 24, 2014 | By Sean Buckley
Customer acceptance of the DTN-X continued to ramp in the second quarter with more of its existing customer base migrating to the new platform.
The vendor signed four new customers, including: a Mexican-based Tier 1 carrier, a large competitive U.S. provider, a Russian cable operator, and XO Communications, a long-time customer that migrated to the DTN-X platform. Three of these DTN-X customers were existing customers that were converting from the previous DTN platform.
"We added four new invoiced DTN-X customers in the second quarter, one of which was a new customer to Infinera," said Tom Fallon, CEO of Infinera, during the earnings call, according to a Seeking Alpha transcript. "This positions us with 46 DTN-X customers to continue to capitalize on the 100-gig technology cycle."
Although the domestic U.S. market makes up 82 percent of its total revenues, Infinera is seeing strong momentum on the international front. International revenue was $29 million, or 18 percent of its total revenue. EMEA made up $19 million or 12 percent, with APAC and Latin America each representing 3 percent.
"Coming off a relatively soft first half of the year, we anticipate growth within multiple international accounts in the second half of 2014," Fallon said.
Fallon added that about "one-third of our DTN customers have now converted to the DTN-X platform."
Besides the new DTN-X customers, Infinera did add another new DTN customer, ending the quarter with a total of 133 invoiced DTN platform customers. The vendor also made inroads on the international front, announcing SEACOM as its second customer in Africa. It also secured a multi-terabit upgrade contract upgrade with the Australia Japan Cable (AJC) consortium.
Looking toward the third quarter, Infinera has forecast revenue to be in the range of $165 million to $175 million, but remains cautious about the rest of the year."
Stock price visibility going way forward is what should be obvious is the intent in understanding the tech. Do they have a long term advantage building up. Do they have a product gap coming up.
Literally understanding how the equipment operates is not the goal, unless you hope to be an Infinera Field Service rep.
Obviously, maintaining innovative technology decreases the Company's product sales risk and effort. They're telling us what they have, so a few of us are just trying to grok what they're saying and whether that interprets into a solid long term advantage.
The stock price is being played. Consistently good news and progress from the Company does not warrant the recent 20% swings in share price.
Play trading significant shares, until the Company can add a huge win and Metro product comes out of the oven. It's interesting that the stock was in the low teens at lower revs, the DTN market maturing, and the US at the brink of economic disaster.
Now, with DTN-X gaining sales momentum, still healthy DTN-related sales, Metro product coming out, revs in the never-experienced-before $170M range, the market is making believe the Company's future is shakier than ever.
If network owners ex- Verizon blink and start to panic build 100G to keep up with their competition, the optical equipment vendors will cash in. Infinera's only downside would be that they target their Metro product for 2015-16, the gold rush comes early and catches them with their pants down.
They hit the midrange of their guidance... not bad, guys/gals
Oct 21, 2013: Ita Brennan announces departure effective Feb 28, 2014
Jan 03, 2014: Director Philip Koen resigns (served 4 years)
Jan 13, 2014: Hired new CFO
Mar 03,2014: Ms Brennan offered consulting arrangement out through Aug 31, 2014 and is allowed to exercise existing stock options held at her termination date, through this consulting period.
Apr 29, 2014: Director Ken Goldman resigns (served 9 years)
Apr 29, 2014: Marcel Gani appointed as Director
May 13, 2014: Dan Maydan resigns (served 13 years and term wasn't expireding until 2015)
May 13, 2014: James Dolce appointed as Director
Jul 11, 2014: SVP GC/Secretary Alastair Short resigns
Net minus one Director and minus one GC/Secretary
If Mr Fallon announces that they've implemented a search for a replacement General Counsel, that throws cold water on my theory of something good coming soon. Common wisdom would probably shrug and say that GC leaving is a non-event.
Ex-CFO gets her options extended out through the end of August, or so.
General Counsel quits on July 11, after only 10 months on the job at Infinera.
Something significant happening in August, or could just be a coincidence.
If they extend Ms Brennan's option expiration some more, that might reinforce the thought that Infinera's expecting to high-five on something soon that is out of their control to specifically calendar
Could be because of Juniper Networks announcing lowered guidance for their next Q, due to delayed capital expenditures from AT&T. But, no change to their revenue expectations for the entire 2014.
Infinera has no exposure yet from the RBOC's, except via CenturyLink. Seems like Infinera should confidently hit it's revenue guidance for Q2. Hopefully they can provide guidance for the full year, so that the analysts can back out the revenue trajectory for Q3, Q4.
Depending on the timing of this deployment, it might be baked into the share price as the previously mentioned boost to Q2 and Q3 revenues that kicked them up into the $170M/Q range.
A nice win, in any case. Infinera seems to be doing a good job capturing a healthy portion of the US contracts ex- the RBOC's. Winning an extremely cost conscious telecom like XO that's been going through a lot of restructuring and employment trimming seems to bode well for the DTN-X's chances someday, in India and Australia. Alcatel may have signed up to take a bath with that Verizon win back in January.
Looks like the lump-sum cash payment and midyear bonus were part of his signing contract severance.
The accelerated vesting of RSU's doesn't sound like a mandatory severance, so leaving on good terms rather than getting the boot.
Looks like they're giving him a going-away gift of 1X his pay, 1 year of health benefits, and accelerated RSU vesting, so I guess Door #1 and #2 don't apply. Doesn't seem like he would get a gift for botching a big deal or ditching Infinera for a better gig, after only 10 months of effort. Barely got past the typical 6 month probation period.
Intriguing, since the dude was hired only 10 months ago. An expensive hire / resignation. Door #1=screwed up something big. Door #2 = greener pastures. Door #3=infinera doesn't need the position anymore, for whatever the reason.
"Sunnyvale, Calif., – Sept. 16, 2013 – Infinera (NASDAQ: INFN), a leading provider of Intelligent Transport Networks™, announced today that it has appointed Alastair Short as Senior Vice President, General Counsel and Corporate Secretary.
“Alastair is a strong addition to our executive team with significant experience with technology companies, including start-ups and global enterprises. We look forward to his contributions to Infinera,” said Tom Fallon, CEO."
From the 8-K announcement:
(b) Departure of Named Executive Officer. On July 11, 2014, Alastair A. Short delivered his resignation from his position as Senior Vice President, General Counsel and Secretary of the Company to be effective as of August 15, 2014. In connection with Mr. Short's resignation, the Company and Mr. Short will enter into a Separation Agreement and General Release of Claims (the "Separation Agreement"). Under the Separation Agreement and subject to the terms and conditions set forth therein, Mr. Short will receive the following:
� A lump-sum cash payment equal to the salary paid to Mr. Short during his period of employment in accordance with the Company's executive severance policy;
� Payment of Mr. Short's COBRA premiums for continuation of health benefits for a period of twelve (12) months;
� A midyear bonus payout in accordance with the Company's fiscal year 2014 Bonus Plan; and
� Accelerated vesting of the portion of Mr. Short's restricted stock units that were scheduled to vest in November 2014.
I continue to wish and watch for a capital-infused partnership with Juniper or the like, as well as driving 100G PIC costs down way past what Ciena and Alcatel can keep up with via their discrete and hybrid solution paths. Hope Infinera can pass and lead the pack, for a change. The Verizon loss seemed to indicate Alcatel was getting seriously worried. Need to sharpen the pencil and win all the rest.