Infinera (NASDAQ: INFN) reported Q2 EPS of ($0.01), $0.03 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $208.23 million versus the consensus estimate of $209.11 million.

“In Q2, we delivered strong margins and our fifth consecutive quarter of revenue growth, as customers continued to adopt our next-generation products,” said Tom Fallon, Infinera CEO. “In the second half, we expect to deploy several new opportunities that will drive multi-year growth. We believe adding Coriant’s capabilities and extensive customer base to our vertically integrated operating model and refreshed product portfolio, will allow us to enter 2019 in a position of strength. I really like our opportunity and am very excited for what the future holds.”

We expect several new customer footprint deployments in the third quarter of 2018. We expect these new deployments will drive multi-year revenue growth and strong margins moving forward. However, as is typical with new deployments of network infrastructure, these will have lower margins initially.

• Revenue is expected to be $210 million +/- $10 million. This expectation implies 9% year-over-year growth at the midpoint.
• GAAP gross margin is expected to be 35% +/- 200 bps. Non-GAAP gross margin is expected to be 38% +/- 200 bps.
• GAAP operating expenses are expected to be $97 million +/- $2 million. Non-GAAP operating expenses are expected to be $86 million +/- $2 million.
• GAAP operating margin is expected to be approximately (12)%. Non-GAAP operating margin is expected to be approximately (3)%.
• GAAP EPS is expected to be $(0.16)+/- $0.02. Non-GAAP EPS is expected to be $(0.05) +/- $0.02.

GUIDANCE:

Infinera sees Q3 2018 EPS of ($0.07)-($0.03), versus the consensus of ($0.02). Infinera sees Q3 2018 revenue of $200-220 million, versus the consensus of $209.84 million.

For earnings history and earnings-related data on Infinera (INFN) click here.