Infinera Corporation (INFN) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $36.25 million, or $ 0.25 a share in the quarter, against a net profit of $12.63 million, or $0.08 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $16.98 million, or $0.12 a share compared with a net profit of $31.96 million, or $0.21 a share in the last year period.
Revenue during the quarter plunged 30.38 percent to $181.04 million from $260.03 million in the previous year period. Gross margin for the quarter contracted 639 basis points over the previous year period to 38.13 percent. Operating margin for the quarter stood at negative 25.34 percent as compared to a positive 5.30 percent for the previous year period.
Operating loss for the quarter was $45.87 million, compared with an operating income of $13.79 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $16.61 million compared to operating profit of $33.10 million in prior year period.
"We executed well in the fourth quarter and delivered results at the high-end of our guidance," said Tom Fallon, Infinera's chief executive officer. "As network infrastructures rapidly evolve, our objective remains to help our customers win by delivering the highest performing solutions at the Transport Layer. Though our product transition is currently holding back revenue growth and profitability, by introducing next generation ICE4 products, my belief is that we are well positioned to begin improving our business results over the course of 2017 and for significant opportunities in the future."
Operating cash flow drops significantly
Infinera Corporation has generated cash of $38.38 million from operating activities during the year, down 71.18 percent or $94.80 million, when compared with the last year.
The company has spent $12.12 million cash to meet investing activities during the year as against cash outgo of $91.48 million in the last year.
The company has spent $8.87 million cash to carry out financing activities during the year as against cash inflow of $20.98 million in the last year period.
Cash and cash equivalents stood at $162.64 million as on Dec. 31, 2016, up 9.08 percent or $13.54 million from $149.10 million on Dec. 26, 2015.
Working capital increases
Infinera Corporation has recorded an increase in the working capital over the last year. It stood at $512.84 million as at Dec. 31, 2016, up 19.80 percent or $84.76 million from $428.07 million on Dec. 26, 2015. Current ratio was at 3.36 as on Dec. 31, 2016, up from 2.81 on Dec. 26, 2015.
Debt moves up
Infinera Corporation has witnessed an increase in total debt over the last one year. It stood at $133.59 million as on Dec. 31, 2016, up 8.32 percent or $10.26 million from $123.33 million on Dec. 26, 2015. Infinera Corp has witnessed an increase in long-term debt over the last one year. It stood at $133.59 million as on Dec. 31, 2016, up 8.32 percent or $10.26 million from $123.33 million on Dec. 26, 2015. Total debt was 11.15 percent of total assets as on Dec. 31, 2016, compared with 10.06 percent on Dec. 26, 2015. Debt to equity ratio was at 0.18 as on Dec. 31, 2016, up from 0.16 as on Dec. 26, 2015.
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