Company Quick10K Filing
Quick10K
Infinera
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$5.30 178 $942
10-Q 2019-06-29 Quarter: 2019-06-29
10-Q 2019-03-30 Quarter: 2019-03-30
10-K 2018-12-29 Annual: 2018-12-29
10-Q 2018-09-29 Quarter: 2018-09-29
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-30 Annual: 2017-12-30
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-07-01 Quarter: 2017-07-01
10-Q 2017-04-01 Quarter: 2017-04-01
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-24 Quarter: 2016-09-24
10-Q 2016-06-25 Quarter: 2016-06-25
10-Q 2016-03-26 Quarter: 2016-03-26
10-K 2015-12-26 Annual: 2015-12-26
10-Q 2015-09-26 Quarter: 2015-09-26
10-Q 2015-06-27 Quarter: 2015-06-27
10-Q 2015-03-28 Quarter: 2015-03-28
10-K 2014-12-27 Annual: 2014-12-27
10-Q 2014-09-27 Quarter: 2014-09-27
10-Q 2014-06-28 Quarter: 2014-06-28
10-Q 2014-03-29 Quarter: 2014-03-29
10-K 2013-12-28 Annual: 2013-12-28
8-K 2019-08-20 Officers
8-K 2019-08-07 Earnings, Exhibits
8-K 2019-08-01 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-08-01 Officers, Exhibits
8-K 2019-06-03 Officers, Exhibits
8-K 2019-05-23 Officers, Shareholder Vote, Exhibits
8-K 2019-05-08 Earnings, Officers, Exhibits
8-K 2019-03-04 Enter Agreement, Exhibits
8-K 2019-02-21 Earnings, Exhibits
8-K 2019-01-24 Officers, Exhibits
8-K 2018-12-10 Exit Costs
8-K 2018-11-06 Earnings, Exhibits
8-K 2018-10-01 Earnings, Officers, Exhibits
8-K 2018-09-06 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-08-07 Earnings, Exhibits
8-K 2018-07-23 Enter Agreement, Earnings, Sale of Shares, Regulation FD, Exhibits
8-K 2018-05-24 Officers, Shareholder Vote, Exhibits
8-K 2018-05-09 Earnings, Exhibits
8-K 2018-02-15 Officers, Exhibits
8-K 2018-02-07 Earnings, Exhibits
CHT Chunghwa Telecom 267,709
GLW Corning 21,487
CTL Centurylink 12,331
ZAYO Zayo Group Holdings 7,982
KT Kt 2,716
ESE ESCO 1,947
PTNR Partner Communications 646
WIN Windstream Holdings 195
ABIL Ability 4
CTY Qwest 0
INFN 2019-06-29
Part I. Financial Information
Item 1. Condensed Consolidated Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
EX-10.1 infn08082019exhibit101.htm
EX-31.1 infn-08082019exhibit311.htm
EX-31.2 infn-08082019exhibit312.htm
EX-32.1 infn-08082019exhibit321.htm

Infinera Earnings 2019-06-29

INFN 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
false--12-28Q2201900011386390.590.580.490.100.480.040.340.33P5Y2M12DP3Y6MP1Y8M12DP4Y10M24DP3Y4M24DP1Y6M368000041290000.0010.00150000000050000000017545200017933900017545200017933900049000001010670002925500090360001204400014540000227890001340300023226000P1Y16000001778410000.0010.001250000002500000000000P6MP1YP1YP1YP1YP3Y16.6210.3117.3515.2319.4614.990.580.560.590.550.01070.00950.01630.01410.02400.0237 0001138639 2018-12-30 2019-06-29 0001138639 2019-08-02 0001138639 2018-12-29 0001138639 2019-06-29 0001138639 2019-03-31 2019-06-29 0001138639 us-gaap:ServiceMember 2018-12-30 2019-06-29 0001138639 2018-04-01 2018-06-30 0001138639 us-gaap:ProductMember 2018-04-01 2018-06-30 0001138639 2017-12-31 2018-06-30 0001138639 us-gaap:ProductMember 2018-12-30 2019-06-29 0001138639 us-gaap:ServiceMember 2018-04-01 2018-06-30 0001138639 us-gaap:ProductMember 2017-12-31 2018-06-30 0001138639 us-gaap:ProductMember 2019-03-31 2019-06-29 0001138639 us-gaap:ServiceMember 2019-03-31 2019-06-29 0001138639 us-gaap:ServiceMember 2017-12-31 2018-06-30 0001138639 us-gaap:CommonStockMember 2017-12-31 2018-06-30 0001138639 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 2018-06-30 0001138639 us-gaap:RetainedEarningsMember 2017-12-30 0001138639 us-gaap:CommonStockMember 2018-06-30 0001138639 us-gaap:RetainedEarningsMember 2018-01-01 0001138639 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001138639 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-30 0001138639 us-gaap:RetainedEarningsMember 2017-12-31 2018-06-30 0001138639 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001138639 2018-06-30 0001138639 2017-12-30 0001138639 2018-01-01 0001138639 us-gaap:RetainedEarningsMember 2018-06-30 0001138639 us-gaap:AdditionalPaidInCapitalMember 2017-12-30 0001138639 us-gaap:CommonStockMember 2017-12-30 0001138639 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 2018-06-30 0001138639 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-29 0001138639 us-gaap:CommonStockMember 2018-12-29 0001138639 us-gaap:AdditionalPaidInCapitalMember 2019-06-29 0001138639 us-gaap:CommonStockMember 2018-12-30 2019-06-29 0001138639 us-gaap:RetainedEarningsMember 2019-01-01 0001138639 us-gaap:CommonStockMember 2019-06-29 0001138639 2019-01-01 0001138639 us-gaap:AdditionalPaidInCapitalMember 2018-12-30 2019-06-29 0001138639 us-gaap:RetainedEarningsMember 2018-12-30 2019-06-29 0001138639 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-30 2019-06-29 0001138639 us-gaap:RetainedEarningsMember 2019-06-29 0001138639 us-gaap:AdditionalPaidInCapitalMember 2018-12-29 0001138639 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-29 0001138639 us-gaap:RetainedEarningsMember 2018-12-29 0001138639 us-gaap:AdditionalPaidInCapitalMember 2019-03-30 0001138639 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-30 0001138639 us-gaap:CommonStockMember 2019-03-30 0001138639 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 2019-06-29 0001138639 2019-03-30 0001138639 us-gaap:CommonStockMember 2019-03-31 2019-06-29 0001138639 us-gaap:RetainedEarningsMember 2019-03-30 0001138639 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 2019-06-29 0001138639 us-gaap:RetainedEarningsMember 2019-03-31 2019-06-29 0001138639 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001138639 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001138639 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001138639 us-gaap:CommonStockMember 2018-03-31 0001138639 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001138639 us-gaap:RetainedEarningsMember 2018-03-31 0001138639 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001138639 2018-03-31 0001138639 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001138639 srt:ScenarioPreviouslyReportedMember 2018-04-01 2018-06-30 0001138639 srt:RestatementAdjustmentMember 2018-04-01 2018-06-30 0001138639 us-gaap:ServiceMember srt:RestatementAdjustmentMember 2018-04-01 2018-06-30 0001138639 us-gaap:ProductMember srt:RestatementAdjustmentMember 2018-04-01 2018-06-30 0001138639 us-gaap:ProductMember srt:ScenarioPreviouslyReportedMember 2018-04-01 2018-06-30 0001138639 us-gaap:ServiceMember srt:ScenarioPreviouslyReportedMember 2018-04-01 2018-06-30 0001138639 srt:RestatementAdjustmentMember 2017-12-31 2018-06-30 0001138639 us-gaap:ServiceMember srt:ScenarioPreviouslyReportedMember 2017-12-31 2018-06-30 0001138639 srt:ScenarioPreviouslyReportedMember 2017-12-31 2018-06-30 0001138639 us-gaap:ServiceMember srt:RestatementAdjustmentMember 2017-12-31 2018-06-30 0001138639 us-gaap:ProductMember srt:RestatementAdjustmentMember 2017-12-31 2018-06-30 0001138639 us-gaap:ProductMember srt:ScenarioPreviouslyReportedMember 2017-12-31 2018-06-30 0001138639 infn:CustomerTwoMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-12-31 2018-06-30 0001138639 infn:CustomerTwoMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-04-01 2018-06-30 0001138639 infn:CustomerOneMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-12-30 2019-06-29 0001138639 infn:CustomerOneMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-04-01 2018-06-30 0001138639 infn:CustomerOneMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-03-31 2019-06-29 0001138639 infn:CustomerOneMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-12-31 2018-06-30 0001138639 srt:MaximumMember 2019-06-29 0001138639 us-gaap:AccountingStandardsUpdate201602Member 2018-12-29 0001138639 us-gaap:AccountingStandardsUpdate201602Member 2018-12-29 2018-12-29 0001138639 us-gaap:AccountingStandardsUpdate201602Member us-gaap:RetainedEarningsMember 2018-12-29 0001138639 srt:MinimumMember 2019-06-29 0001138639 infn:AmericasExcludingUnitedStatesMember 2018-04-01 2018-06-30 0001138639 srt:AsiaPacificMember 2017-12-31 2018-06-30 0001138639 country:US 2017-12-31 2018-06-30 0001138639 infn:AmericasExcludingUnitedStatesMember 2017-12-31 2018-06-30 0001138639 us-gaap:EMEAMember 2018-12-30 2019-06-29 0001138639 srt:AsiaPacificMember 2018-04-01 2018-06-30 0001138639 country:US 2018-04-01 2018-06-30 0001138639 country:US 2019-03-31 2019-06-29 0001138639 us-gaap:EMEAMember 2018-04-01 2018-06-30 0001138639 us-gaap:EMEAMember 2019-03-31 2019-06-29 0001138639 us-gaap:EMEAMember 2017-12-31 2018-06-30 0001138639 infn:AmericasExcludingUnitedStatesMember 2019-03-31 2019-06-29 0001138639 country:US 2018-12-30 2019-06-29 0001138639 srt:AsiaPacificMember 2019-03-31 2019-06-29 0001138639 infn:AmericasExcludingUnitedStatesMember 2018-12-30 2019-06-29 0001138639 srt:AsiaPacificMember 2018-12-30 2019-06-29 0001138639 2019-07-01 2019-06-29 0001138639 2023-01-01 2019-06-29 0001138639 2022-01-01 2019-06-29 0001138639 2020-01-01 2019-06-29 0001138639 2021-01-01 2019-06-29 0001138639 2024-01-01 2019-06-29 0001138639 infn:IndirectRevenueMember 2018-04-01 2018-06-30 0001138639 infn:DirectRevenueMember 2018-04-01 2018-06-30 0001138639 infn:DirectRevenueMember 2018-12-30 2019-06-29 0001138639 infn:IndirectRevenueMember 2019-03-31 2019-06-29 0001138639 infn:DirectRevenueMember 2017-12-31 2018-06-30 0001138639 infn:IndirectRevenueMember 2018-12-30 2019-06-29 0001138639 infn:IndirectRevenueMember 2017-12-31 2018-06-30 0001138639 infn:DirectRevenueMember 2019-03-31 2019-06-29 0001138639 us-gaap:AgencySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:AgencySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2018-12-29 0001138639 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2019-06-29 0001138639 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:AgencySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2018-12-29 0001138639 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2019-06-29 0001138639 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2018-12-29 0001138639 us-gaap:AgencySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:AgencySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:AgencySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2019-06-29 0001138639 us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-29 0001138639 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-29 0001138639 us-gaap:ShortTermInvestmentsMember 2018-12-29 0001138639 us-gaap:USTreasurySecuritiesMember us-gaap:CashAndCashEquivalentsMember 2018-12-29 0001138639 us-gaap:CorporateBondSecuritiesMember us-gaap:ShortTermInvestmentsMember 2018-12-29 0001138639 us-gaap:CashAndCashEquivalentsMember 2018-12-29 0001138639 us-gaap:MoneyMarketFundsMember us-gaap:CashAndCashEquivalentsMember 2018-12-29 0001138639 us-gaap:AgencySecuritiesMember us-gaap:ShortTermInvestmentsMember 2018-12-29 0001138639 us-gaap:CorporateBondSecuritiesMember us-gaap:ShortTermInvestmentsMember 2019-06-29 0001138639 us-gaap:CashAndCashEquivalentsMember 2019-06-29 0001138639 us-gaap:ShortTermInvestmentsMember 2019-06-29 0001138639 us-gaap:MoneyMarketFundsMember us-gaap:CashAndCashEquivalentsMember 2019-06-29 0001138639 infn:ForeignSubsidiaryMember 2019-06-29 0001138639 us-gaap:TradeAccountsReceivableMember 2018-12-30 2019-06-29 0001138639 us-gaap:TradeAccountsReceivableMember 2019-03-31 2019-06-29 0001138639 infn:GBPDenominatedExchangeForwardContractsReceivablesMember us-gaap:NondesignatedMember 2019-06-29 0001138639 infn:GBPDenominatedExchangeForwardContractsReceivablesMember us-gaap:NondesignatedMember 2018-12-29 0001138639 us-gaap:NondesignatedMember 2019-06-29 0001138639 infn:EuroDenominatedExchangeForwardContractsReceivablesMember us-gaap:NondesignatedMember 2018-12-29 0001138639 infn:ForeignCurrencyExchangeRestrictedCashForwardContractsMember us-gaap:NondesignatedMember 2018-12-29 0001138639 us-gaap:NondesignatedMember 2018-12-29 0001138639 infn:EuroDenominatedExchangeForwardContractsReceivablesMember us-gaap:NondesignatedMember 2019-06-29 0001138639 infn:ForeignCurrencyExchangeRestrictedCashForwardContractsMember us-gaap:NondesignatedMember 2019-06-29 0001138639 infn:TelecomHoldingParentLLCMember 2018-10-01 2018-10-01 0001138639 infn:A2.125ConvertibleSeniorNotesDueSeptember12024Member 2019-06-29 0001138639 infn:TelecomHoldingParentLLCMember 2018-12-29 0001138639 infn:TelecomHoldingParentLLCMember us-gaap:CommonStockMember 2018-10-01 2018-10-01 0001138639 infn:TelecomHoldingParentLLCMember us-gaap:CommonStockMember 2018-10-01 0001138639 infn:TelecomHoldingParentLLCMember us-gaap:CustomerRelationshipsMember 2018-10-01 2018-10-01 0001138639 infn:TelecomHoldingParentLLCMember us-gaap:TradeNamesMember 2018-10-01 2018-10-01 0001138639 infn:TelecomHoldingParentLLCMember us-gaap:DevelopedTechnologyRightsMember 2018-10-01 2018-10-01 0001138639 infn:TelecomHoldingParentLLCMember 2018-10-01 0001138639 infn:TelecomHoldingParentLLCMember us-gaap:InProcessResearchAndDevelopmentMember 2018-10-01 2018-10-01 0001138639 us-gaap:AccountingStandardsUpdate201701Member infn:TelecomHoldingParentLLCMember 2019-06-29 0001138639 infn:TelecomHoldingParentLLCMember 2019-06-29 0001138639 us-gaap:DevelopedTechnologyRightsMember 2018-12-29 0001138639 infn:InProcessTechnologyMember 2018-12-29 0001138639 us-gaap:CustomerRelationshipsMember 2018-12-29 0001138639 us-gaap:TradeNamesMember 2018-12-29 0001138639 infn:InProcessTechnologyMember 2019-06-29 0001138639 us-gaap:TradeNamesMember 2019-06-29 0001138639 us-gaap:CustomerRelationshipsMember 2019-06-29 0001138639 us-gaap:DevelopedTechnologyRightsMember 2019-06-29 0001138639 2017-12-31 2018-12-29 0001138639 us-gaap:CustomerRelationshipsMember 2017-12-31 2018-12-29 0001138639 us-gaap:DevelopedTechnologyRightsMember 2017-12-31 2018-12-29 0001138639 us-gaap:CustomerRelationshipsMember 2018-12-30 2019-06-29 0001138639 us-gaap:DevelopedTechnologyRightsMember 2018-12-30 2019-06-29 0001138639 us-gaap:ComputerSoftwareIntangibleAssetMember 2019-06-29 0001138639 us-gaap:LandAndBuildingMember 2019-06-29 0001138639 us-gaap:ConstructionInProgressMember 2018-12-29 0001138639 infn:LaboratoryAndManufacturingEquipmentMember 2019-06-29 0001138639 us-gaap:ComputerEquipmentMember 2019-06-29 0001138639 us-gaap:FurnitureAndFixturesMember 2019-06-29 0001138639 us-gaap:ComputerSoftwareIntangibleAssetMember 2018-12-29 0001138639 us-gaap:ComputerEquipmentMember 2018-12-29 0001138639 infn:LaboratoryAndManufacturingEquipmentMember 2018-12-29 0001138639 infn:LeaseholdAndBuildingImprovementsMember 2018-12-29 0001138639 us-gaap:FurnitureAndFixturesMember 2018-12-29 0001138639 us-gaap:ConstructionInProgressMember 2019-06-29 0001138639 infn:LeaseholdAndBuildingImprovementsMember 2019-06-29 0001138639 us-gaap:LandAndBuildingMember 2018-12-29 0001138639 infn:EnterpriseResourcePlanningSystemsMember 2018-12-29 0001138639 infn:EnterpriseResourcePlanningSystemsMember 2019-06-29 0001138639 us-gaap:CostOfSalesMember 2018-04-01 2018-06-30 0001138639 us-gaap:OperatingExpenseMember 2017-12-31 2018-06-30 0001138639 us-gaap:CostOfSalesMember 2017-12-31 2018-06-30 0001138639 us-gaap:OperatingExpenseMember 2018-04-01 2018-06-30 0001138639 us-gaap:CostOfSalesMember 2019-03-31 2019-06-29 0001138639 us-gaap:OperatingExpenseMember 2018-12-30 2019-06-29 0001138639 us-gaap:OperatingExpenseMember 2019-03-31 2019-06-29 0001138639 us-gaap:CostOfSalesMember 2018-12-30 2019-06-29 0001138639 infn:AcceleratedAmortizationOfLeaseAssetsMember 2018-12-30 2019-06-29 0001138639 infn:AcceleratedAmortizationOfLeaseAssetsMember 2018-12-29 0001138639 infn:AcceleratedDepreciationAndOtherAssetImpairmentChargesMember 2018-12-30 2019-06-29 0001138639 us-gaap:FacilityClosingMember 2019-06-29 0001138639 infn:AcceleratedAmortizationOfLeaseAssetsMember 2019-06-29 0001138639 us-gaap:FacilityClosingMember 2018-12-30 2019-06-29 0001138639 us-gaap:EmployeeSeveranceMember 2019-06-29 0001138639 us-gaap:EmployeeSeveranceMember 2018-12-29 0001138639 infn:AcceleratedDepreciationAndOtherAssetImpairmentChargesMember 2019-06-29 0001138639 us-gaap:EmployeeSeveranceMember 2018-12-30 2019-06-29 0001138639 infn:AcceleratedDepreciationAndOtherAssetImpairmentChargesMember 2018-12-29 0001138639 us-gaap:FacilityClosingMember 2018-12-29 0001138639 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-12-30 2019-06-29 0001138639 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-06-29 0001138639 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-29 0001138639 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-30 2019-06-29 0001138639 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-30 2019-06-29 0001138639 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-29 0001138639 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-12-29 0001138639 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-06-29 0001138639 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-29 0001138639 infn:ConvertibleSeniorNotesDueJuneTwoThousandAndEighteenMember 2019-06-29 0001138639 us-gaap:EmployeeStockOptionMember 2018-04-01 2018-06-30 0001138639 us-gaap:EmployeeStockMember 2018-04-01 2018-06-30 0001138639 us-gaap:PerformanceSharesMember 2018-12-30 2019-06-29 0001138639 us-gaap:RestrictedStockMember 2017-12-31 2018-06-30 0001138639 us-gaap:PerformanceSharesMember 2018-04-01 2018-06-30 0001138639 us-gaap:RestrictedStockMember 2018-04-01 2018-06-30 0001138639 us-gaap:RestrictedStockMember 2018-12-30 2019-06-29 0001138639 us-gaap:EmployeeStockOptionMember 2018-12-30 2019-06-29 0001138639 us-gaap:EmployeeStockOptionMember 2019-03-31 2019-06-29 0001138639 us-gaap:PerformanceSharesMember 2019-03-31 2019-06-29 0001138639 us-gaap:EmployeeStockMember 2019-03-31 2019-06-29 0001138639 us-gaap:EmployeeStockOptionMember 2017-12-31 2018-06-30 0001138639 us-gaap:RestrictedStockMember 2019-03-31 2019-06-29 0001138639 us-gaap:PerformanceSharesMember 2017-12-31 2018-06-30 0001138639 us-gaap:EmployeeStockMember 2017-12-31 2018-06-30 0001138639 us-gaap:EmployeeStockMember 2018-12-30 2019-06-29 0001138639 infn:A2.125ConvertibleSeniorNotesDueSeptember12024Member 2018-12-29 0001138639 infn:ConvertibleSeniorNotesDueJuneTwoThousandAndEighteenMember 2017-12-31 2018-06-30 0001138639 infn:ConvertibleSeniorNotesDueJuneTwoThousandAndEighteenMember 2018-04-01 2018-06-30 0001138639 infn:ConvertibleSeniorNotesDueJuneTwoThousandAndEighteenMember 2018-06-01 2018-06-01 0001138639 infn:FabrinetMember us-gaap:LoansPayableMember 2019-05-30 2019-05-30 0001138639 us-gaap:MortgagesMember 2019-03-01 2019-03-30 0001138639 infn:A2.125ConvertibleSeniorNotesDueSeptember12024Member 2018-09-01 2018-09-30 0001138639 us-gaap:MortgagesMember 2019-06-29 0001138639 infn:FabrinetMember us-gaap:LoansPayableMember 2019-06-29 0001138639 infn:ConvertibleSeniorNotesDueJuneTwoThousandAndEighteenMember 2018-06-30 0001138639 infn:A2.125ConvertibleSeniorNotesCircumstance1Member 2018-09-01 2018-09-30 0001138639 infn:A2.125ConvertibleSeniorNotesDueSeptember12024Member 2018-12-30 2019-06-29 0001138639 infn:A2.125ConvertibleSeniorNotesCircumstance2Member 2018-09-01 2018-09-30 0001138639 infn:FabrinetMember us-gaap:LoansPayableMember 2019-05-30 0001138639 infn:A2.125ConvertibleSeniorNotesDueSeptember12024Member 2019-03-31 2019-06-29 0001138639 us-gaap:EmployeeStockOptionMember 2019-06-29 0001138639 us-gaap:EmployeeStockOptionMember 2018-12-30 2019-06-29 0001138639 us-gaap:EmployeeStockOptionMember 2018-12-29 0001138639 infn:EmployeeStockPurchasePlansMember 2019-03-31 2019-06-29 0001138639 infn:EmployeeStockPurchasePlansMember 2018-04-01 2018-06-30 0001138639 infn:EmployeeStockPurchasePlansMember 2018-12-30 2019-06-29 0001138639 infn:EmployeeStockPurchasePlansMember 2017-12-31 2018-06-30 0001138639 us-gaap:PerformanceSharesMember 2018-12-30 2019-06-29 0001138639 us-gaap:PerformanceSharesMember 2018-12-29 0001138639 us-gaap:PerformanceSharesMember 2019-06-29 0001138639 us-gaap:PerformanceSharesMember 2015-12-27 2016-03-26 0001138639 us-gaap:PerformanceSharesMember 2017-12-31 2018-06-30 0001138639 us-gaap:GeneralAndAdministrativeExpenseMember 2017-12-31 2018-06-30 0001138639 us-gaap:ResearchAndDevelopmentExpenseMember 2019-03-31 2019-06-29 0001138639 us-gaap:ResearchAndDevelopmentExpenseMember 2018-04-01 2018-06-30 0001138639 us-gaap:SellingAndMarketingExpenseMember 2018-04-01 2018-06-30 0001138639 us-gaap:GeneralAndAdministrativeExpenseMember 2018-04-01 2018-06-30 0001138639 us-gaap:GeneralAndAdministrativeExpenseMember 2018-12-30 2019-06-29 0001138639 us-gaap:ResearchAndDevelopmentExpenseMember 2017-12-31 2018-06-30 0001138639 us-gaap:GeneralAndAdministrativeExpenseMember 2019-03-31 2019-06-29 0001138639 us-gaap:SellingAndMarketingExpenseMember 2019-03-31 2019-06-29 0001138639 us-gaap:SellingAndMarketingExpenseMember 2017-12-31 2018-06-30 0001138639 us-gaap:SellingAndMarketingExpenseMember 2018-12-30 2019-06-29 0001138639 us-gaap:ResearchAndDevelopmentExpenseMember 2018-12-30 2019-06-29 0001138639 us-gaap:RestrictedStockUnitsRSUMember 2017-12-31 2018-06-30 0001138639 2019-06-28 0001138639 infn:ExistingEmployeesMember us-gaap:PerformanceSharesMember infn:A2016EquityIncentivePlanMember infn:Vesting1Member 2018-12-30 2019-06-29 0001138639 us-gaap:RestrictedStockUnitsRSUMember 2019-03-31 2019-06-29 0001138639 us-gaap:RestrictedStockUnitsRSUMember 2018-04-01 2018-06-30 0001138639 infn:ExistingEmployeesMember us-gaap:PerformanceSharesMember infn:A2016EquityIncentivePlanMember infn:Vesting2Member 2018-12-30 2019-06-29 0001138639 infn:A2016EquityIncentivePlanMember 2018-12-30 2019-06-29 0001138639 infn:ExistingEmployeesMember us-gaap:PerformanceSharesMember infn:TwoThousandAndSevenEquityIncentivePlanMember infn:Vesting3Member 2018-12-30 2019-06-29 0001138639 us-gaap:RestrictedStockUnitsRSUMember 2018-12-30 2019-06-29 0001138639 infn:PerformanceStockUnitMember 2018-04-01 2018-06-30 0001138639 srt:MinimumMember us-gaap:PerformanceSharesMember infn:A2016EquityIncentivePlanMember 2018-12-30 2019-06-29 0001138639 srt:MaximumMember us-gaap:PerformanceSharesMember infn:A2016EquityIncentivePlanMember 2018-12-30 2019-06-29 0001138639 srt:MinimumMember us-gaap:PerformanceSharesMember infn:TwoThousandAndSevenEquityIncentivePlanMember 2018-12-30 2019-06-29 0001138639 infn:ExistingEmployeesMember us-gaap:PerformanceSharesMember infn:A2016EquityIncentivePlanMember infn:Vesting3Member 2018-12-30 2019-06-29 0001138639 infn:PerformanceStockUnitMember 2019-03-31 2019-06-29 0001138639 infn:ExistingEmployeesMember us-gaap:PerformanceSharesMember infn:TwoThousandAndSevenEquityIncentivePlanMember infn:Vesting1Member 2018-12-30 2019-06-29 0001138639 infn:A2016EquityIncentivePlanMember 2019-06-29 0001138639 srt:MaximumMember us-gaap:PerformanceSharesMember infn:TwoThousandAndSevenEquityIncentivePlanMember 2018-12-30 2019-06-29 0001138639 infn:ExistingEmployeesMember us-gaap:PerformanceSharesMember infn:TwoThousandAndSevenEquityIncentivePlanMember infn:Vesting2Member 2018-12-30 2019-06-29 0001138639 infn:PerformanceStockUnitMember 2018-12-30 2019-06-29 0001138639 infn:A2016EquityIncentivePlanMember 2019-05-01 2019-05-31 0001138639 infn:PerformanceStockUnitMember 2017-12-31 2018-06-30 0001138639 us-gaap:InventoryValuationAndObsolescenceMember 2019-06-29 0001138639 us-gaap:InventoryValuationAndObsolescenceMember 2018-12-29 0001138639 us-gaap:RestrictedStockUnitsRSUMember 2019-06-29 0001138639 us-gaap:RestrictedStockUnitsRSUMember 2018-12-29 0001138639 infn:FiscalYear2015GrantMember us-gaap:PerformanceSharesMember 2018-12-30 2019-06-29 0001138639 infn:FiscalYear2017GrantMember us-gaap:PerformanceSharesMember 2018-12-30 2019-06-29 0001138639 infn:FiscalYear2016GrantMember us-gaap:PerformanceSharesMember 2019-06-29 0001138639 infn:FiscalYear2018GrantMember us-gaap:PerformanceSharesMember 2018-12-30 2019-06-29 0001138639 infn:FiscalYear2016GrantMember us-gaap:PerformanceSharesMember 2018-12-30 2019-06-29 0001138639 infn:FiscalYear2018GrantMember us-gaap:PerformanceSharesMember 2019-06-29 0001138639 infn:FiscalYear2016GrantMember us-gaap:PerformanceSharesMember 2018-12-29 0001138639 infn:FiscalYear2017GrantMember us-gaap:PerformanceSharesMember 2018-12-29 0001138639 infn:FiscalYear2017GrantMember us-gaap:PerformanceSharesMember 2019-06-29 0001138639 infn:FiscalYear2018GrantMember us-gaap:PerformanceSharesMember 2018-12-29 0001138639 infn:FiscalYear2015GrantMember us-gaap:PerformanceSharesMember 2019-06-29 0001138639 infn:FiscalYear2015GrantMember us-gaap:PerformanceSharesMember 2018-12-29 0001138639 us-gaap:PerformanceSharesMember infn:A2016EquityIncentivePlanMember 2018-12-30 2019-06-29 0001138639 srt:MaximumMember us-gaap:PerformanceSharesMember 2015-12-27 2016-03-26 0001138639 srt:MinimumMember us-gaap:PerformanceSharesMember 2015-12-27 2016-03-26 0001138639 srt:MinimumMember us-gaap:PerformanceSharesMember 2017-01-01 2017-07-01 0001138639 us-gaap:PerformanceSharesMember 2017-01-01 2017-07-01 0001138639 srt:MaximumMember us-gaap:PerformanceSharesMember 2017-01-01 2017-07-01 0001138639 srt:MinimumMember us-gaap:PerformanceSharesMember 2017-12-31 2018-06-30 0001138639 srt:MaximumMember us-gaap:PerformanceSharesMember 2017-12-31 2018-06-30 0001138639 infn:OtherAmericasMember 2019-06-29 0001138639 infn:OtherAmericasMember 2018-12-29 0001138639 srt:AsiaPacificMember 2018-12-29 0001138639 srt:AsiaPacificMember 2019-06-29 0001138639 us-gaap:EMEAMember 2018-12-29 0001138639 country:US 2018-12-29 0001138639 country:US 2019-06-29 0001138639 us-gaap:EMEAMember 2019-06-29 0001138639 infn:BankersGuaranteesOrPerformanceBondsMember 2019-06-29 0001138639 us-gaap:LetterOfCreditMember 2018-12-29 0001138639 infn:BankersGuaranteesOrPerformanceBondsMember 2018-12-30 2019-06-29 0001138639 us-gaap:LetterOfCreditMember 2019-06-29 0001138639 infn:BankersGuaranteesOrPerformanceBondsMember 2018-12-29 0001138639 infn:BankersGuaranteesOrPerformanceBondsMember 2017-12-31 2018-12-29 0001138639 us-gaap:RevolvingCreditFacilityMember us-gaap:SubsequentEventMember 2019-08-01 0001138639 us-gaap:LetterOfCreditMember us-gaap:SubsequentEventMember 2019-08-01 0001138639 infn:SwingLineLoanFacilityMember us-gaap:SubsequentEventMember 2019-08-01 0001138639 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember us-gaap:SubsequentEventMember 2019-08-01 2019-08-01 0001138639 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember us-gaap:SubsequentEventMember us-gaap:BaseRateMember 2019-08-01 2019-08-01 0001138639 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember us-gaap:SubsequentEventMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-08-01 2019-08-01 0001138639 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember us-gaap:SubsequentEventMember us-gaap:BaseRateMember 2019-08-01 2019-08-01 0001138639 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember us-gaap:SubsequentEventMember 2019-08-01 2019-08-01 0001138639 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember us-gaap:SubsequentEventMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-08-01 2019-08-01 iso4217:USD xbrli:pure iso4217:USD xbrli:shares infn:transaction xbrli:shares infn:petition utreg:D infn:segment infn:installment
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 29, 2019
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission file number: 001-33486
INFINERA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
 
77-0560433
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
140 Caspian Court
 
 
Sunnyvale,
CA
 
94089
(Address of principal executive offices)
 
(Zip Code)
(408) 572-5200
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Common shares, par value $0.001 per share
 
INFN
 
The Nasdaq Global Select Market
(Title of each class)
 
(Trading symbol)
 
(Name of exchange on which registered)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  
Large accelerated filer

 
Accelerated filer 
Non-accelerated filer
 
Smaller reporting company
 
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of August 2, 2019, 179,397,165 shares of the registrant’s Common Stock, $0.001 par value, were issued and outstanding.


Table of Contents

INFINERA CORPORATION
QUARTERLY REPORT ON FORM 10-Q
FOR THE FISCAL QUARTER ENDED JUNE 29, 2019
INDEX
 
 
 
Page
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 6.
 
 
 
 


Table of Contents

PART I. FINANCIAL INFORMATION
 

Item 1.
Condensed Consolidated Financial Statements (Unaudited)
INFINERA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par values)
(Unaudited)
 
June 29,
2019
 
December 29, 2018

ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
109,034

 
$
202,954

Short-term investments
1,497

 
26,511

Short-term restricted cash
2,742

 
13,229

Accounts receivable, net of allowance for doubtful accounts of $4,129 in 2019 and $3,680 in 2018
260,352

 
317,115

Inventory
338,793

 
311,888

Prepaid expenses and other current assets
109,817

 
85,400

Total current assets
822,235

 
957,097

Property, plant and equipment, net
159,210

 
342,820

Operating lease right-of-use assets
64,740

 

Intangible assets
200,991

 
233,119

Goodwill
229,281

 
227,231

Long-term restricted cash
26,745

 
26,154

Other non-current assets
10,817

 
14,849

Total assets
$
1,514,019

 
$
1,801,270

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
194,882

 
$
191,187

Accrued expenses and other current liabilities
158,617

 
131,891

Accrued compensation and related benefits
77,152

 
71,152

Accrued warranty
23,364

 
20,103

Deferred revenue
78,417

 
88,534

Total current liabilities
532,432

 
502,867

Long-term debt, net
284,270

 
266,929

Long-term financing lease obligations
1,413

 
193,538

Accrued warranty, non-current
20,782

 
20,918

Deferred revenue, non-current
28,510

 
31,768

Deferred tax liability
10,094

 
13,347

Operating lease liabilities
58,631

 

Other long-term liabilities
62,817

 
68,082

Commitments and contingencies (Note 19)

 

Stockholders’ equity:
 
 
 
Preferred stock, $0.001 par value
   Authorized shares – 25,000 and no shares issued and outstanding

 

Common stock, $0.001 par value
Authorized shares – 500,000 as of June 29, 2019 and December 29, 2018
 
 
 
Issued and outstanding shares – 179,339 as of June 29, 2019 and 175,452 as of December 29, 2018
179

 
175

Additional paid-in capital
1,715,657

 
1,685,916

Accumulated other comprehensive loss
(32,236
)
 
(25,300
)
Accumulated deficit
(1,168,530
)
 
(956,970
)
Total stockholders' equity
515,070

 
703,821

Total liabilities and stockholders’ equity
$
1,514,019

 
$
1,801,270

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Table of Contents

INFINERA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
 
Three Months Ended
 
Six Months Ended
 
June 29,
2019
 
June 30,
2018
 
June 29,
2019
 
June 30,
2018
Revenue:
 
 
 
 
 
 
 
Product
$
226,866

 
$
175,288

 
$
449,873

 
$
346,917

Services
69,384

 
32,939

 
139,084

 
63,991

Total revenue
296,250

 
208,227

 
588,957

 
410,908

Cost of revenue:
 
 
 
 
 
 
 
Cost of product
177,501

 
105,914

 
335,318

 
208,238

Cost of services
36,831

 
13,039

 
73,507

 
25,870

Amortization of intangible assets
8,098

 
4,943

 
16,350

 
10,284

Acquisition and integration costs
10,700

 

 
12,764

 

Restructuring and related
1,864

 
26

 
23,330

 
43

Total cost of revenue
234,994

 
123,922

 
461,269

 
244,435

Gross profit
61,256

 
84,305

 
127,688

 
166,473

Operating expenses:

 
 
 
 
 
 
Research and development
73,937

 
56,158

 
147,597

 
114,839

Sales and marketing
37,651

 
28,234

 
77,688

 
57,119

General and administrative
35,672

 
18,365

 
68,716

 
36,201

Amortization of intangible assets
6,745

 
1,487

 
13,802

 
3,094

Acquisition and integration costs
12,164

 

 
19,298

 

Restructuring and related
3,471

 
1,680

 
20,659

 
1,517

Total operating expenses
169,640

 
105,924

 
347,760

 
212,770

Loss from operations
(108,384
)
 
(21,619
)
 
(220,072
)
 
(46,297
)
Other income (expense), net:
 
 
 
 
 
 
 
Interest income
183

 
629

 
949

 
1,526

Interest expense
(7,280
)
 
(2,501
)
 
(14,843
)
 
(6,184
)
Other gain (loss), net
3,210

 
1,429

 
287

 
1,935

Total other income (expense), net
(3,887
)
 
(443
)
 
(13,607
)
 
(2,723
)
Loss before income taxes
(112,271
)
 
(22,062
)
 
(233,679
)
 
(49,020
)
Provision for (benefit from) income taxes
1,385

 
(124
)
 
1,578

 
(802
)
Net loss
(113,656
)
 
(21,938
)
 
(235,257
)
 
(48,218
)
Net loss per common share:
 
 
 
 
 
 
 
Basic
$
(0.64
)
 
$
(0.14
)
 
$
(1.33
)
 
$
(0.32
)
Diluted
$
(0.64
)
 
$
(0.14
)
 
$
(1.33
)
 
$
(0.32
)
Weighted average shares used in computing net loss per common share:
 
 
 
 
 
 
 
Basic
178,677

 
152,259

 
177,542

 
151,296

Diluted
178,677

 
152,259

 
177,542

 
151,296

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

Table of Contents

INFINERA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(In thousands)
(Unaudited)
 
 
Three Months Ended
 
Six Months Ended
 
June 29,
2019
 
June 30,
2018
 
June 29,
2019
 
June 30,
2018
Net loss
$
(113,656
)
 
$
(21,938
)
 
$
(235,257
)
 
$
(48,218
)
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
Change in unrealized gain (loss) on available-for-sale investments
24

 
224

 
89

 
99

Foreign currency translation adjustment
(1,949
)
 
(23,495
)
 
(7,506
)
 
(28,311
)
Tax related to available-for-sale investment

 
(26
)
 

 
(26
)
Actuarial gain on pension liabilities
403

 

 
481

 

Net change in accumulated other comprehensive loss
(1,522
)
 
(23,297
)
 
(6,936
)
 
(28,238
)
Comprehensive loss
$
(115,178
)
 
$
(45,235
)
 
$
(242,193
)
 
$
(76,456
)
The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Table of Contents

INFINERA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)
 
 
 
Three Months Ended June 29, 2019
 
 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Accumulated
Deficit
 
Total Stockholders' Equity
 
 
Shares
 
Amount
 
Balance at March 30, 2019
 
177,415

 
$
177

 
$
1,702,710

 
$
(30,714
)
 
$
(1,054,874
)
 
$
617,299

Shares withheld for tax obligations
 
(80
)
 

 
(354
)
 

 

 
(354
)
Restricted stock units released
 
2,004

 
2

 
(2
)
 

 

 

Stock-based compensation
 

 

 
13,303

 

 

 
13,303

Other comprehensive loss
 

 

 

 
(1,522
)
 

 
(1,522
)
Net loss
 

 

 

 

 
(113,656
)
 
(113,656
)
Balance at June 29, 2019
 
179,339

 
$
179

 
$
1,715,657

 
$
(32,236
)
 
$
(1,168,530
)
 
$
515,070



 
 
Six Months Ended June 29, 2019
 
 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Accumulated
Deficit
 
Total Stockholders' Equity
 
 
Shares
 
Amount
 
Balance at December 29, 2018
 
175,452

 
$
175

 
$
1,685,916

 
$
(25,300
)
 
$
(956,970
)
 
$
703,821

ESPP shares issued
 
1,825

 
2

 
7,738

 

 

 
7,740

Shares withheld for tax obligations
 
(80
)
 

 
(354
)
 

 

 
(354
)
Restricted stock units released
 
2,142

 
2

 
(2
)
 

 

 

Stock-based compensation
 

 

 
22,359

 

 

 
22,359

Cumulative-effect adjustment from adoption of Topic 842
 

 

 

 

 
23,697

 
23,697

Other comprehensive loss
 

 

 

 
(6,936
)
 

 
(6,936
)
Net loss
 

 

 

 

 
(235,257
)
 
(235,257
)
Balance at June 29, 2019
 
179,339

 
$
179

 
$
1,715,657

 
(32,236
)
 
$
(1,168,530
)
 
515,070




6

Table of Contents

 
 
Three Months Ended June 30, 2018
 
 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Accumulated
Deficit
 
Total Stockholders' Equity
 
 
Shares
 
Amount
 
Balance at March 31, 2018
 
151,165

 
$
151

 
$
1,438,700

 
$
1,313

 
$
(768,955
)
 
$
671,209

Stock options exercised
 
64

 

 
422

 

 

 
422

Shares withheld for tax obligations
 
(73
)
 

 
(867
)
 

 

 
(867
)
Restricted stock units released
 
1,784

 
2

 
(2
)
 

 

 

Stock-based compensation
 

 

 
11,883

 

 

 
11,883

Other comprehensive loss
 

 

 

 
(23,297
)
 

 
(23,297
)
Net loss
 

 

 

 

 
(21,938
)
 
(21,938
)
Balance at June 30, 2018
 
152,940

 
$
153

 
$
1,450,136

 
$
(21,984
)
 
$
(790,893
)
 
$
637,412



 
 
Six Months Ended June 30, 2018
 
 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Accumulated
Deficit
 
Total Stockholders' Equity
 
 
Shares
 
Amount
 
Balance at December 30, 2017
 
149,471

 
$
149

 
$
1,417,043

 
$
6,254

 
$
(758,081
)
 
$
665,365

Stock options exercised
 
226

 

 
1,682

 

 

 
1,682

ESPP shares issued
 
1,284

 
2

 
9,383

 

 

 
9,385

Shares withheld for tax obligations
 
(89
)
 

 
(964
)
 

 

 
(964
)
Restricted stock units released
 
2,048

 
2

 
(2
)
 

 

 

Stock-based compensation
 

 

 
22,994

 

 

 
22,994

Cumulative-effect adjustment from adoption of Topic 606
 

 

 

 

 
15,406

 
15,406

Other comprehensive loss
 

 

 

 
(28,238
)
 

 
(28,238
)
Net loss
 

 

 

 

 
(48,218
)
 
(48,218
)
Balance at June 30, 2018
 
152,940

 
$
153

 
$
1,450,136

 
$
(21,984
)
 
$
(790,893
)
 
$
637,412




The accompanying notes are an integral part of these condensed consolidated financial statements.


7

Table of Contents

INFINERA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
Six Months Ended
 
June 29,
2019
 
June 30,
2018
Cash Flows from Operating Activities:
 
 
 
Net loss
$
(235,257
)
 
$
(48,218
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
Depreciation and amortization
62,143

 
33,250

Non-cash restructuring charges and related (credits)
18,172

 
(81
)
Amortization of debt discount and issuance costs
9,245

 
5,072

Operating lease amortization, net of accretion
23,355

 

Stock-based compensation expense
21,760

 
23,027

Other loss
10

 
167

Changes in assets and liabilities:
 
 
 
Accounts receivable
55,216

 
(22,015
)
Inventory
(30,640
)
 
(8,703
)
Prepaid expenses and other assets
(30,958
)
 
(1,809
)
Accounts payable
4,726

 
24,458

Accrued liabilities and other expenses
(5,472
)
 
(14,617
)
Deferred revenue
(12,267
)
 
2,351

Net cash used in operating activities
(119,967
)
 
(7,118
)
Cash Flows from Investing Activities:
 
 
 
Purchase of available-for-sale investments

 
(2,986
)
Proceeds from sales of available-for-sale investments

 
23,114

Proceeds from sale of non-marketable equity investments

1,009

 
 
Proceeds from maturities of investments
25,085

 
98,112

Acquisition of business, net of cash acquired
(10,000
)
 

Purchase of property and equipment
(15,784
)
 
(21,503
)
Net cash provided by (used in) investing activities
310

 
96,737

Cash Flows from Financing Activities:
 
 
 
Proceeds from issuance of debt, net
8,584

 

Repayment of debt
(96
)
 
(150,000
)
Proceeds from issuance of common stock
7,740

 
11,066

Minimum tax withholding paid on behalf of employees for net share settlement
(354
)
 
(964
)
Net cash provided by (used in) financing activities
15,874

 
(139,898
)
Effect of exchange rate changes on cash and restricted cash
(33
)
 
(2,218
)
Net change in cash, cash equivalents and restricted cash
(103,816
)
 
(52,497
)
Cash, cash equivalents and restricted cash at beginning of period
242,337

 
121,486

Cash, cash equivalents and restricted cash at end of period(1)
$
138,521

 
$
68,989

Supplemental disclosures of cash flow information:
 
 
 
Cash paid for income taxes, net of refunds
$
13,606

 
$
2,210

Cash paid for interest
$
4,687

 
$
1,328

Supplemental schedule of non-cash investing and financing activities:
 
 
 
Third-party manufacturer funding for transfer expenses incurred
$
3,327

 

Transfer of inventory to fixed assets
$
2,195

 
$
1,684



8

Table of Contents


(1)     Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets:
 
June 29,
2019
 
June 30,
2018
 
 
 
 
 
(In thousands)
Cash and cash equivalents
$
109,034

 
$
63,308

Short-term restricted cash
2,742

 
308

Long-term restricted cash
26,745

 
5,373

Total cash, cash equivalents and restricted cash
$
138,521

 
$
68,989



The accompanying notes are an integral part of these condensed consolidated financial statements.

9

Table of Contents

INFINERA CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1.
Basis of Presentation and Significant Accounting Policies
Basis of Presentation
Infinera Corporation (the “Company”) prepared its interim condensed consolidated financial statements that accompany these notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018.
The Company has made certain estimates, assumptions and judgments that can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Significant estimates, assumptions and judgments made by management include revenue recognition, stock-based compensation, employee benefit and pension plans, inventory valuation, accrued warranty, operating lease liabilities, business combinations, fair value measurement of investments and accounting for income taxes. Other less significant estimates, assumptions and judgments made by management include allowances for sales returns, allowances for doubtful accounts, useful life of intangible assets, and property, plant and equipment. Management believes that the estimates and judgments upon which they rely are reasonable based upon information available to them at the time that these estimates and judgments are made. To the extent there are material differences between these estimates and actual results, the Company’s condensed consolidated financial statements will be affected.
The interim financial information is unaudited, but reflects all adjustments that are, in management’s opinion, necessary to provide a fair presentation of results for the interim periods presented. All adjustments are of a normal recurring nature. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.
This interim information should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018.
The Company reclassified certain amounts reported in previous periods to conform to the current presentation. Effective in the fourth quarter of 2018, the Company elected to present amortization of intangible assets and acquisition and integration costs as separate line items within cost of revenue and operating expenses. As a result, the costs previously reflected in cost of revenue and operating expenses were reclassified to amortization of intangible assets and acquisition and integration costs within total cost of revenue and total operating expenses. Prior period amounts have been revised to conform to the current period presentation. This change in presentation does not affect the Company's total cost of revenue or total operating expenses.

10


The following tables show reclassified amounts to conform to the current period's presentation (in thousands):
 
Three Months Ended June 30, 2018
 
Previously Reported
 
Change in Presentation Reclassification
 
Current Presentation
Cost of revenue:
 
 
 
 
 
Cost of product
$
110,857

 
$
(4,943
)
 
$
105,914

Cost of services
13,039

 

 
13,039

Amortization of intangible assets(1)

 
4,943

 
4,943

Restructuring and related
26

 

 
26

Total
$
123,922

 
$

 
$
123,922

 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
Research and development
$
56,158

 
$

 
$
56,158

Sales and marketing
29,721

 
(1,487
)
 
28,234

General and administrative
18,365

 

 
18,365

Amortization of intangible assets(1)

 
1,487

 
1,487

Restructuring and related
1,680

 

 
1,680

Total
$
105,924

 
$

 
$
105,924


 
Six Months Ended June 30, 2018
 
Previously Reported
 
Change in Presentation Reclassification
 
Current Presentation
Cost of revenue:
 
 
 
 
 
Cost of product
$
218,522

 
$
(10,284
)
 
$
208,238

Cost of services
25,870

 

 
25,870

Amortization of intangible assets(1)

 
10,284

 
10,284

Restructuring and related
43

 

 
43

Total
$
244,435

 
$

 
$
244,435

 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
Research and development
$
114,839

 
$

 
$
114,839

Sales and marketing
60,213

 
(3,094
)
 
57,119

General and administrative
36,201

 

 
36,201

Amortization of intangible assets(1)

 
3,094

 
3,094

Restructuring and related
1,517

 

 
1,517

Total
$
212,770

 
$

 
$
212,770

 
 
 
(1)
These lines were not previously reported in the consolidated statements of operations.
To date, a few of the Company’s customers have accounted for a significant portion of its revenue. For the three months ended June 29, 2019, one customer accounted for 13% of the Company's total revenue and for the corresponding period in 2018, two customers individually accounted for 23% and 13% of the Company's total revenue, respectively. For the six months ended June 29, 2019, one customer accounted for 12% of the Company's total revenue and for the corresponding period in 2018, two customers individually accounted for 26% and 12% of the Company's total revenue, respectively.



11


There have been no material changes in the Company’s significant accounting policies for the six months ended June 29, 2019 as compared to those disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018, with the exception of the Company's lease accounting policy. Effective December 30, 2018, the Company adopted Accounting Standards Update 2016-02, “Leases (Topic 842)” ("Topic 842"). See Note 3, “Leases” to the Notes to Condensed Consolidated Financial Statements for discussion on the impact of the adoption of these standards on the Company's policy for leases.
2.
Recent Accounting Pronouncements
Accounting Pronouncements Recently Adopted
In August 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2018-15, “Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”). The update provides guidance for determining if a cloud computing arrangement is within the scope of internal-use software guidance, and would require capitalization of certain implementation costs. The Company adopted ASU 2018-15 in the first quarter of 2019. The Company's adoption of ASU 2018-15 did not have a significant impact on its consolidated financial statements.
In June 2018, the FASB issued Accounting Standards Update No. 2018-07, “Improvements to Non-employee Share-Based Payment Accounting” (“ASU 2018-07”), which simplifies the accounting for share-based payments granted to non-employees for goods and services. Under ASU 2018-07, certain guidance on such payments to non-employees is aligned with the requirements for share-based payments granted to employees. The Company's adoption of ASU 2017-09 during its first quarter of 2019 did not have a significant impact on its consolidated financial statements.
In February 2016, the FASB issued Topic 842, which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). For lessees, leases will continue to be classified as either operating or financing in the income statement. The Company adopted Topic 842 in the first quarter of 2019 utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of the first quarter of 2019. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical lease classification, assessment on whether a contract was or contains a lease, and initial direct costs for leases that existed prior to December 30, 2018. The Company also elected to combine its lease and non-lease components and not recognize right-of-use (“ROU”) assets and lease liabilities for leases with an initial term of 12 months or less. The Company did not elect to apply the hindsight practical expedient when determining lease terms and assessing impairment of ROU assets.
In January 2017, the FASB issued Accounting Standards Update No. 2017-04, “Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The guidance eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. The Company elected to early adopt the standard prospectively during its first quarter of 2019 and the adoption of the standard did not have any impact on its consolidated financial statements.
Accounting Pronouncements Not Yet Effective
In August 2018, the FASB issued Accounting Standards Update No. 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”). The update eliminates, adds, and modifies certain disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. ASU 2018-14 is effective for the Company in its first quarter of 2020, with early adoption permitted. The Company is currently evaluating the impact the adoption of ASU 2018-14 would have on its consolidated financial statements.
In August 2018, the FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). The update eliminates, adds, and modifies certain disclosure requirements for fair value measurements. ASU 2018-13 is effective for the Company in its first quarter of 2020 and early adoption is permitted of the entire standard or only the provisions that eliminate or modify disclosure requirements. The Company is currently evaluating the impact the adoption of ASU 2018-13 would have on its consolidated financial statements.

12


In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) further amended by Accounting Standards Update No. 2019-04 issued in April 2019 and 2019-05 issued in May 2019, which requires measurement and recognition of expected credit losses for financial assets held. This guidance is effective for the Company in its first quarter of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-13 and 2019-04 would have on its consolidated financial statements.
3.
Leases
Effective December 30, 2018, the Company adopted Topic 842 using the alternative modified transition method, which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated.
The Company leases facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 10 years and contain leasehold improvement incentives, rent holidays and escalation clauses. In addition, some of these leases have renewal options for up to five years.
The Company determines if an arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued expenses and operating lease liabilities on the Company's consolidated balance sheets. The Company does not have any finance leases.
    Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance and utilities. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company rents or subleases certain real estate under agreements that are classified as operating leases.
Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent) separately from the non-lease components (e.g., common-area maintenance costs).     
Adoption of Topic 842
The primary impact for the Company was the balance sheet recognition of operating lease ROU asset and operating lease liabilities. In addition, the Company's financing lease obligations that historically did not qualify for sale leaseback accounting under ASC 840-40, “Leases - Sale-Leaseback Transactions” (“ASC 840-40”) now meet the criteria for sale under Topic 842 and are recorded as operating leases. As a result, the Company reclassified financing liabilities of $198.3 million from accrued expenses and long-term financing lease obligations and assets of $174.6 million from property, plant and equipment, net, to $23.8 million accumulated deficit adjustment reflecting the cumulative effect of an accounting change related to the sale-leasebacks.

13


The following table summarizes the impacts of adopting Topic 842 on the Company's condensed consolidated balance sheet as of December 29, 2018 (in thousands):
 
 
As Reported Balance as of December 29, 2018
 
Adjustments due to Topic 842
 
As Adjusted Balance as of December 29, 2018
Assets
 
 
 
 
 
 
Property, plant and equipment, net
 
$
342,820

 
$
(174,386
)
 
$
168,434

Operating lease right-of-use assets
 
$

 
$
78,855

 
$
78,855

Other non-current assets
 
$
14,849

 
$
(4,884
)
 
$
9,965

 
 
 
 
 
 


Liabilities
 
 
 
 
 
 
Accrued expenses and other current liabilities
 
$
131,891

 
$
(7,343
)
 
$
124,548

Long-term financing lease obligation