Infinera reports several ICE6 wins in Q1 despite supply chains hurdles

 Infinera records several ICE6 wins during Q1 despite supply chain challenges

Infinera suffered a poor financial performance in Q1 2022. The company reported a loss of $41.9million. David Heard, Infinera CEO, said that the quarter's loss was due to "uncontrollable" and "previously unforeseen supply chain developments."

Revenue increased 2% year-overyear to $339 Million, up from $331M in Q1 2021. But it fell short of the expected $363 Million. Infinera's ICE6 engine saw a strong demand, and Infinera released a "turbo” version in February. This resulted in product revenue increasing by more than 5%. However, services revenue decreased 8% year over year.

Heard pointed out that Infinera suspended operations in Russia, which had an impact of $5 million on revenue. Heard spoke Tuesday during the company’s earnings call. Project delays due to customer dependencies caused another $15 million loss. Infinera shipped hardware, but customers were faced with difficulties in preparing their sites for installation. Heard claimed that the timing impact was distributed roughly among product and service revenue.

Heard added that Infinera had a "relatively small" supply chain impact due to Covid-related China Shutdowns in the third quarter. This was despite an "already difficult semiconductor industry."

Heard claimed that Infinera bookings increased by double-digit percentages year-over-year, despite supply-chain challenges. Infinera announced several major customer wins in the first quarter. Infinera broke the 800G distance mark in March with fiber provider Zayo. Windstream is also working with Infinera on next-generation technology to optimize optical network slicing.

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Infinera this quarter also secured an ICE6 victory with Hetzner Online in Germany and signed a deal with NexGen Networks to implement Infinera's GX Series product.

Heard said, "We're significantly increasing the production capacity of ICE6 internal, given the strong demand that we are seeing."

Nancy Erba, Infinera CEO, said that ICE6 production has positively impacted the company’s gross margin of 36.22%. ICE6 grew at a rate of "high teens” as a percentage product revenue in Q1.

Infinera continues to have a positive financial outlook as it heads into Q2 2022. The company aims for a revenue of at least $350 million. While it anticipates that ICE6 production will continue in the second half, Erba stated that customer delays, product push outs, and other factors "will continue to press [Infinera]'s] revenue," especially for professional services connected to new projects.

Infinera announced that 800G of optical transmission was successfully delivered to GlobalConnect Carrier's longhaul network. The network services more than 100,000 km (km) of fiber across Northern Europe. 12g lucky bee nexgen clay poker chips critical overview