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re: INFN Options
MKM reports positive Infinera checks ahead of earnings
Jul 17 2015, 19:04 ET
| About: Infinera
Corporation
(INFN) | By: Eric
Jhonsa, SA News Editor 
- MKM's Michael Genovese, ahead of Infinera's
(NASDAQ:INFN)
July 22 Q2 report: "According to our checks, 2Q15 was a good
quarter overall for new [optical network] footprint builds in
Europe and in the U.S. wholesale market. Additionally, there was
strong capacity demand from CenturyLink and from Infinera's top Web
2.0 and Cable MSO customers."
- He also estimates Infinera's Cloud
Xpress metro point-to-point interconnect solution (only
recently began shipping) saw Q2 revenue of $10M-$12M, thus yielding
1H15 sales of ~$15M. On its Q1 CC (transcript), Infinera reported having seven
invoice customers for Cloud Xpress, and talked up the long-term
potential of the data center interconnect market, which is
benefiting from cloud traffic growth. "It's a relatively young
market today, few hindered million dollars and it's forecasted to
grow to a few billion dollars over the next several years."
- Both Genovese and Jefferies' George Notter see Infinera topping
its $200M Q2 revenue guidance midpoint - consensus is already at
$201.4M. Notter adds he likes how Infinera's bid for Swedish optical
transport hardware vendor Trasmode (provided it succeeds) expands
its metro product line, and thinks the company could roll out a
1.2Tbps photonic integrated circuit (PIC) in October. Infinera's
most powerful PIC currently tops out at 500Gbps.
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