Infinera Corporation has recently released its 10-K report, providing a detailed overview of its financial performance and operational highlights. The company, headquartered in San Jose, California, specializes in providing optical transport networking equipment, software, and services worldwide. Infinera caters to a diverse customer base, including telecommunications service providers, internet content providers, cable providers, and large enterprises. The company's product portfolio encompasses a wide range of optical transport platforms, packet-optical transport platforms, open optical line systems, and various networking solutions designed to meet the growing demand for high-bandwidth business and consumer communication services.
In the fiscal year ending December 30, 2023, Infinera reported total revenue of $1,614.1 million, representing a 3% increase from the previous year. The growth in revenue was primarily driven by the continued deployment of its products within the internet content provider and other service provider verticals. In contrast, revenue from Tier 1 and Cable verticals experienced a slight decline. Infinera anticipates further revenue growth in 2024, supported by a more diversified customer base and opportunities to drive the adoption of new and existing vertically integrated solutions.
Gross margin for the fiscal year ending December 30, 2023, increased to 39% from 34% in 2022. The improvement in gross margin was attributed to higher sales volume, favorable product mix, lower component costs, and improved absorption of fixed costs due to increased sales volumes. Infinera aims to continue expanding its vertical integration capabilities into a broader range of optical networking solutions, focusing on engineering design efforts to lower component costs and drive operational efficiencies to further improve gross margin over time.
Operating expenses for the fiscal year ending December 30, 2023, amounted to $627.8 million, reflecting a 5% increase from the previous year. The rise in operating expenses was primarily driven by higher employee-related costs and increased depreciation expenses. Infinera intends to balance prudent cost management with strategic investments in technology innovation and global go-to-market efforts to expand its customer reach and drive additional market share gains in the long term.
In terms of revenue distribution, Infinera derived 66% of its revenue from direct sales to customers in 2023, compared to 76% in 2022. The company anticipates continuing to generate the majority of its revenue from direct sales in the future.
Today the company's shares have moved -1.2% to a price of $5.25. Check out the company's full 10-K submission here.
