Citing ramping sales of its ICE6, Infinera reported Q4 2022 GAAP revenue of $485.9 million compared to $390.4 million in the third quarter of 2022 and $400.3 million in the fourth quarter of 2021. GAAP gross margin for the quarter was 37.1% compared to 34.4% in the third quarter of 2022 and 35.6% in the fourth quarter of 2021. GAAP operating margin for the quarter was 5.2% compared to (2.4)% in the third quarter of 2022 and (2.5)% in the fourth quarter of 2021.
GAAP net income for the quarter was $33.5 million, or $0.14 per diluted share, compared to net loss of $(11.9) million, or $(0.05) per diluted share, in the third quarter of 2022, and net loss of $(33.1) million, or $(0.16) per diluted share, in the fourth quarter of 2021. Non-GAAP net income for the quarter was $40.3 million, or $0.16 per diluted share, compared to net income of $9.9 million, or $0.05 per diluted share, in the third quarter of 2022, and $5.7 million, or $0.03 per diluted share, in the fourth quarter of 2021.
Infinera CEO David Heard said, “Our fourth quarter revenue and operating profit beat consensus expectations and contributed to record performance for Infinera on many fronts. In the fourth quarter we grew product revenue by 26% and overall revenue by 21% compared to the same quarter a year ago, while operating profit improved approximately three-fold compared to the same quarter a year ago. We delivered these results despite the significant impact of elevated supply chain costs on our financial results. We expanded ICE6 revenue in the quarter, continued to win in the metro, deployed new line systems and advanced the qualification of our 400G ZR+ softwaredefined pluggables.”
“For the full year of 2022, we ramped ICE6 to exceed our 25% of product revenue annual goal, grew total revenue by 10%, and improved operating margin by 230 basis points. Furthermore, we introduced our first subsystems products, which positions us well to access a new multibillion-dollar market that we believe can drive incremental growth, profitability and earnings per share as we focus on achieving our target business model.”
