Infinera Corporation reported its financial results for the third quarter and nine months ended September 28, 2024, revealing significant declines in revenue and increased net losses compared to the previous fiscal period. Total revenue for Q3 2024 was $354.4 million, a decrease of 10% from $392.4 million in Q3 2023. For the nine months ended September 28, 2024, revenue totaled $1.0 billion, down 13% from $1.16 billion in the same period last year. The decline was primarily attributed to reduced sales from Tier 1 customers in the United States, Asia Pacific, and Europe, as well as Other Service Provider customers.
Product revenue also fell, with Q3 2024 figures at $276.2 million, down 13% from $316.6 million in Q3 2023. Despite a slight increase in services revenue for Q3 2024, the overall nine-month services revenue decreased by 2% due to delays in customer readiness for professional services.
Infinera's gross profit for Q3 2024 was $141.2 million, reflecting a gross margin of 40%, consistent with the prior year. However, total operating expenses rose slightly to $152.2 million from $150.7 million in Q3 2023, leading to a net loss of $14.3 million for Q3 2024, compared to a loss of $9.4 million in Q3 2023. For the nine-month period, the net loss increased significantly to $124.0 million from $38.1 million in the previous year.
The company’s total current assets decreased to $922.1 million as of September 28, 2024, down from $1.1 billion at the end of 2023. Cash and cash equivalents also fell to $115.1 million from $172.5 million. Stockholders' equity decreased to $133.8 million, with an accumulated deficit growing to $(1.85 billion).
Strategically, Infinera entered into a Merger Agreement with Nokia Corporation on June 27, 2024, under which Infinera will become a wholly owned subsidiary of Nokia. The agreement includes cash and share considerations, with the merger expected to close in the first half of 2025, pending regulatory approvals. The company incurred $15.5 million in transaction expenses related to the merger during the nine months ended September 28, 2024.
Infinera's restructuring efforts continue, with costs related to the 2024 Restructuring Plan amounting to $3.2 million for the nine-month period. The company is also addressing material weaknesses in internal controls over financial reporting, particularly in the revenue and inventory cycles, and has developed a remediation plan to enhance its financial reporting processes.
About Infinera Corp
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