Fri, May 24, 1:01 PM (150 days ago)
Infinera Corporation's Q1 2024 financial results reflect a challenging quarter marked by significant declines in revenue and profitability. Total revenue decreased by 22% year-over-year to $306.9 million, driven by a 25% drop in product revenue and a 7% decline in services revenue. The gross profit margin slightly decreased to 36% from 37% in Q1 2023, primarily due to lower revenue and higher costs. Operating expenses were relatively stable, decreasing by 2% to $153.4 million. However, the company reported a net loss of $61.4 million, a substantial increase from a $8.4 million loss in Q1 2023. This was influenced by higher interest expenses and foreign exchange losses. Cash flow from operations improved to $24.0 million, compared to a negative cash flow of $1.8 million in the prior year. Key balance sheet changes include a reduction in accounts receivable and inventory, offset by decreases in accounts payable and accrued liabilities. The company's restructuring initiatives, aimed at cost reduction, incurred $0.3 million in expenses. Despite these challenges, Infinera maintains a cash position of $190.8 million and has access to a $200 million revolving credit facility. Management remains focused on mitigating supply chain issues, managing costs, and aligning its operations with market demand. The company anticipates continued headwinds but is taking steps to stabilize and improve financial performance.