Leading optical transport network developer, Infinera Corp.INFN reported encouraging financial results in the fourth quarter of 2016 wherein both the top line and bottom line surpassed the respective Zacks Consensus Estimate.
Infinera, which provides digital optical networking systems to telecommunication carriers, cable operators and other service providers worldwide, faces direct competition from the likes of Ciena Corp. CIEN , Netgear Inc. NTGR and Brocade Communications Systems Inc. BRCD . Infinera currently carries a Zacks Rank #4 (Sell). However all the other three above mentioned stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The company reported adjusted loss per share of 18 cents, which was narrower than the Zacks Consensus Estimate of a loss of 19 cents. Quarterly GAAP net loss was $36.3 million or a loss of 25 cents per share compared with the year-ago net income of $12.6 million or 8 cents per share.
Quarterly total revenue came in at a little over $181 million, down 30.4% year over year, but outpaced the Zacks Consensus Estimate of $176 million. Segment-wise, product revenues were $151.4 million, down 33.3% year over year. Services revenues dropped 10.1% to nearly $29.7 million. Domestic revenues contributed 53% to the total revenue, while the remaining 47% was generated from international markets.
In 2016, Infinera generated cash of $38.4 million from operations compared with $133.2 million recorded in 2015. Free cash flow in 2016 was a negative $5 million compared with $91.2 million in 2015.
At the end of 2016, Infinera had $304.3 million of cash and cash equivalents and marketable securities compared with $149.1 million at the end of 2015. Total debt at the end of 2016 was $133.6 million compared with $123.3 at the end of 2015. Meanwhile, the debt-to-capitalization ratio was 0.15 compared with 0.18 at 2015-end.
Infinera Corporation Price, Consensus and EPS Surprise
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>