UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

					

FORM 8-K

					
 	 	 	 	 	
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 11, 2020

	

INFINERA CORPORATION
(Exact name of registrant as specified in its charter)

					

	

Delaware	 	001-33486	 	77-0560433	
(State or other jurisdiction of
incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	

					
 	140 Caspian Court	 	
 	Sunnyvale,	California	94089	 	
 	(Address of principal executive offices, including Zip Code)	 	
(408) 572-5200
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)

					
 	 	 	 	 	
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

		
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	

		
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	

		
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	

		
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
 
Securities registered pursuant to Section 12(b) of the Act:

					
Title of each class	 	Trading Symbol(s)	 	Name of each exchange on which registered	
Common Stock, par value $0.001 per share	 	INFN	 	The Nasdaq Global Select Market	

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐

	
		
Item 2.02	Results of Operations and Financial Condition.	
On May 12, 2020, Infinera Corporation (the “Company”) issued a press release announcing financial results for its first quarter ended March 28, 2020. The Company also posted on the Investor Relations section of its website (www.infinera.com) investor slides for its first quarter ended March 28, 2020 and outlook for its second quarter ending June 27, 2020. A copy of the press release and investor slides are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K. Information on the Company’s website is not, and will not be deemed, a part of this report or incorporated into this or any other filings that the Company makes with the Securities and Exchange Commission.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished under Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such a filing.

The press release and investor slides furnished herewith as Exhibit 99.1 and Exhibit 99.2, refer to certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is contained in the exhibit in which each such non-GAAP measure appears.

		
Item 5.02	Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
	
(e)
On May 11, 2020, as part of the Company’s proactive, cost-cutting measures undertaken in response to the impacts of the COVID-19 pandemic, the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) approved a temporary reduction of 25% in the base salaries of Thomas J. Fallon, the Company’s Chief Executive Officer, Nancy Erba, the Company’s Chief Financial Officer, and David W. Heard, the Company’s Chief Operating Officer. In addition, the Committee approved a temporary reduction of 20% in the base salary of David L. Teichmann, the Company’s Chief Legal Officer. These reductions to the base salary of the foregoing named executive officers (“NEOs”) are set to be in effect from May 23, 2020, until the earlier of December 26, 2020, or the date that each such NEO’s base salary is reinstated by the Committee. It is the understanding and intention of the Committee that these temporary reductions do not and will not reduce an NEO’s potential severance-related awards or benefits in the event of any qualifying termination of employment under any Company policy or applicable agreement between such NEO and the Company.

	
		
Item 8.01	Other Events.

As part of the Company’s cost-cutting measures, on May 11, 2020, the non-employee members of the Board also elected to reduce their annual retainer fees for service on the Board and its committees by 35%, to be in effect from May 23, 2020 until the earlier of December 26, 2020 or the date such annual retainer fees are reinstated by the Board.

	
		
Item 9.01	Financial Statements and Exhibits.	
(d)	Exhibits.	

	
			
Exhibit No.	  	Description	
 	 	
99.1	  	Press release of Infinera Corporation dated May 12, 2020	
99.2	 	Investor Slides dated May 12, 2020	
104	 	Cover Page Interactive Data File (formatted as Inline XBRL)	

	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	

 	 	 	 	INFINERA CORPORATION	
 	 	 	
Date: May 12, 2020	 	By:	 	/s/ NANCY ERBA	
 	 	 	 	Nancy Erba
Chief Financial Officer

Exhibit 99.1

Infinera Corporation Reports First Quarter 2020 Financial Results

Sunnyvale, Calif., May 12, 2020 - Infinera Corporation (NASDAQ: INFN) today released financial results for its first quarter ended March 28, 2020.
GAAP revenue for the quarter was $330.3 million compared to $384.6 million in the fourth quarter of 2019 and $292.7 million in the first quarter of 2019.
GAAP gross margin for the quarter was 23.3% compared to 29.0% in the fourth quarter of 2019 and 22.7% in the first quarter of 2019. GAAP operating margin for the quarter was (23.3)% compared to (15.8)% in the fourth quarter of 2019 and (38.2)% in the first quarter of 2019.
GAAP net loss for the quarter was $(99.3) million, or $(0.55) per share, compared to $(66.6) million, or $(0.37) per share, in the fourth quarter of 2019, and $(121.6) million, or $(0.69) per share, in the first quarter of 2019.
Non-GAAP revenue for the quarter was $331.4 million compared to $386.5 million in the fourth quarter of 2019 and $295.6 million in the first quarter of 2019.
Non-GAAP gross margin for the quarter was 28.3% compared to 35.2% in the fourth quarter of 2019 and 35.3% in the first quarter of 2019. Non-GAAP operating margin for the quarter was (9.4)% compared to 2.3% in the fourth quarter of 2019 and (11.9)% in the first quarter of 2019.
Non-GAAP net loss for the quarter was $(49.4) million, or $(0.27) per share, compared to a net income of $6.4 million, or $0.03 per share, in the fourth quarter of 2019, and net loss of $(41.2) million, or $(0.23) per share, in the first quarter of 2019.
A further explanation of the use of non-GAAP financial information and a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure can be found at the end of this release.
“While facing impacts associated with the COVID-19 pandemic, we continued to service our customers and deliver year-over-year growth in revenue and orders during the quarter,” said Tom Fallon, Infinera CEO. “While the macro-economic environment creates visibility challenges for the second half of the year, we are on track for ICE6 delivery this year and remain very optimistic about the opportunity we see for Infinera in the medium and long term, driven by our truly differentiated performance in the fast-growing high-capacity optical market.”
Financial Outlook
Infinera's outlook for the quarter ending June 27, 2020 is as follows:
		
•	GAAP revenue is expected to be $319 million +/- $10 million. Non-GAAP revenue is expected to be $320 million +/- $10 million.	
		
•	GAAP gross margin is expected to be 29% +/- 200 bps. Non-GAAP gross margin is expected to be 33% +/- 200 bps.	
		
•	GAAP operating expenses are expected to be $142 million +/- $2 million. Non-GAAP operating expenses are expected to be $122 million +/- $2 million.	
		
•	GAAP operating margin is expected to be approximately (15.5)% +/- 300 bps. Non-GAAP operating margin is expected to be approximately (4)% +/- 300 bps.	
First Quarter 2020 Investor Slides Available Online
Investor slides reviewing Infinera's first quarter of 2020 financial results will be furnished to the SEC on a Current Report on Form 8-K and published on Infinera's Investor Relations website at investors.infinera.com prior to first quarter of 2020 earnings conference call. Analysts and investors are encouraged to review these slides prior to participating in the conference call webcast.

Conference Call Information
Infinera will host a conference call for analysts and investors to discuss its results for the first quarter of 2020 and its outlook for the second quarter of 2020 today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Interested parties may join the conference call by dialing 1-866-373-6878 (toll free) or 1-412-317-5101 (international). A live webcast of the conference call will also be accessible from the Events section of Infinera’s website at investors.infinera.com. Replay of the audio webcast will be available at investors.infinera.com approximately two hours after the end of the live call.

	
			
Contacts:	  	 	
Media:
Anna Vue
Tel. +1 (916) 595-8157
avue@infinera.com	  	Investors:
Michael Bowen, ICR, Inc.
Tel. +1 (203) 682-8299
Michael.Bowen@icrinc.com 

	
 	 	Marc P. Griffin, ICR, Inc.
Tel. +1 (646) 277-1290
 Marc.Griffin@icrinc.com 

About Infinera
Infinera is a global supplier of innovative networking solutions that enable carriers, cloud operators, governments, and enterprises to scale network bandwidth, accelerate service innovation, and automate network operations. The Infinera end-to-end packet-optical portfolio delivers industry-leading economics and performance in long-haul, submarine, data center interconnect, and metro transport applications. To learn more about Infinera, visit www.infinera.com, follow us on Twitter @Infinera, and read Infinera's latest blog posts at www.infinera.com/blog.

Forward-Looking Statements
This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. Such forward-looking statements include, without limitation, Infinera’s visibility into the performance of its business in the second half of 2020 based on the unpredictability of the macro-economic environment; Infinera's expectations related to the delivery of ICE6 in 2020; Infinera’s medium- and long-term opportunities; and its financial outlook for the second quarter of 2020, including the projected revenue impact of the coronavirus for the second quarter of 2020.
Forward-looking statements can also be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and "would” or similar words. These statements are based on information available to Infinera as of the date hereof and actual results could differ materially from those stated or implied due to risks and uncertainties. The risks and uncertainties that could cause Infinera’s results to differ materially from those expressed or implied by such forward-looking statements include, the effect of the COVID-19 pandemic on Infinera’s business, results of operations, financial condition, and stock price; the effect of global and regional economic conditions on Infinera’s business, including effects on purchasing decisions by customers; Infinera’s future capital needs and its ability to generate the cash flow or otherwise secure the capital necessary to make anticipated capital expenditures; Infinera's ability to service its debt obligations and pursue its strategic plan; delays in the development and introduction of new products or updates to existing products; market acceptance of Infinera’s end-to-end portfolio; Infinera's reliance on single and limited source suppliers; fluctuations in demand, sales cycles and prices for products and services, including discounts given in response to competitive pricing pressures, as well as the timing of purchases by Infinera's key customers; the effect that changes in product pricing or mix, and/or increases in component costs could have on Infinera’s gross margin; Infinera’s ability to respond to rapid technological changes; aggressive business tactics by Infinera’s competitors; the effects of customer consolidation; the impacts of foreign currency fluctuations; Infinera’s ability to protect Infinera’s intellectual property; claims by others that Infinera infringes their intellectual property; war, terrorism, public health issues, natural disasters and other circumstances that could disrupt the supply, delivery or demand of Infinera's products; and other risks and uncertainties detailed in Infinera’s SEC filings from time to time. More information on potential factors that may impact Infinera’s business are set forth in its Annual Report on Form 10-K for the year ended on December 28, 2019 as filed with the SEC on March 4, 2020, as well as subsequent reports filed with or furnished to the SEC from time to time. These reports are available on Infinera’s website at www.infinera.com and the SEC’s website at www.sec.gov. Infinera assumes no obligation to, and does not currently intend to, update any such forward-looking statements.

Use of Non-GAAP Financial Information
In addition to disclosing financial measures prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures that exclude acquisition-related deferred revenue and inventory adjustments, stock-based compensation expenses, amortization of acquired intangible assets, acquisition and integration costs, restructuring and related costs, amortization of debt discount on Infinera’s convertible senior notes, and COVID-19 related costs, along with related income tax effects. For a description of these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measures, please see the section titled, “GAAP to Non-GAAP Reconciliations.”
Infinera has included forward-looking non-GAAP information in this press release, including an estimate of certain non-GAAP financial measures for the second quarter of 2020 that exclude acquisition-related deferred revenue adjustments, stock-based compensation expenses, amortization of acquired intangible assets, acquisition and integration costs related to Infinera's acquisition of Coriant, and restructuring and related expenses. Please see the section titled, “GAAP to Non-GAAP Reconciliation of Financial Outlook” below on specific adjustments.
Infinera believes these adjustments are appropriate to enhance an overall understanding of its underlying financial performance and also its prospects for the future and are considered by management for the purpose of making operational decisions. In addition, these results are the primary indicators management uses as a basis for its planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for revenue, gross margin, operating expenses and operating margin, prepared in accordance with GAAP. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and are subject to limitations.
A copy of this press release can be found on the Investor Relations page of Infinera’s website at www.infinera.com.
Infinera and the Infinera logo are trademarks or registered trademarks of Infinera Corporation. All other trademarks used or mentioned herein belong to their respective owners.

Infinera Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited) 

									
 	 	Three Months Ended	
 	 	March 28,
2020	 	March 30,
2019	
Revenue:	 	 	 	 	
Product	 	$	255,192		 	$	223,007		
Services	 	75,081		 	69,700		
Total revenue	 	330,273		 	292,707		
Cost of revenue:	 	 	 	 	
Cost of product	 	201,792		 	157,817		
Cost of services	 	40,695		 	36,676		
Amortization of intangible assets	 	8,628		 	8,252		
Acquisition and integration costs	 	1,035		 	2,064		
Restructuring and related	 	1,157		 	21,466		
Total cost of revenue	 	253,307		 	226,275		
Gross profit	 	76,966		 	66,432		
Operating expenses:	 	 	 	 	
Research and development	 	68,180		 	73,660		
Sales and marketing	 	36,689		 	40,037		
General and administrative	 	29,620		 	33,044		
Amortization of intangible assets	 	4,555		 	7,057		
Acquisition and integration costs	 	9,222		 	7,134		
Restructuring and related	 	5,580		 	17,188		
Total operating expenses	 	153,846		 	178,120		
Loss from operations	 	(76,880	)	 	(111,688	)	
Other income (expense), net:	 	 	 	 	
Interest income	 	24		 	766		
Interest expense	 	(8,794	)	 	(7,563	)	
Other gain (loss), net:	 	(12,682	)	 	(2,923	)	
Total other income (expense), net	 	(21,452	)	 	(9,720	)	
Loss before income taxes	 	(98,332	)	 	(121,408	)	
Provision for income taxes	 	936		 	193		
Net loss	 	(99,268	)	 	(121,601	)	
 	 	 	 	 	
Net loss per common share - basic and diluted:	 	$	(0.55	)	 	$	(0.69	)	
 	 	 	 	 	
Weighted average shares used in computing net loss per common share - basic and diluted:	 	 	 	 	
Basic	 	182,024		 	176,406		
Diluted	 	182,024		 	176,406		

Infinera Corporation
GAAP to Non-GAAP Reconciliations
(In thousands, except percentages and per share data)
(Unaudited) 

																						
 	 	Three Months Ended	
 	 	March 28, 2020	 	 	 	December 28, 2019	 	 	 	March 30, 2019	 	 	
Reconciliation of Revenue:	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. GAAP as reported	 	$	330,273		 	 	 	$	384,567		 	 	 	$	292,707		 	 	
Acquisition-related deferred revenue adjustment(1)	 	1,110		 	 	 	1,891		 	 	 	2,905		 	 	
Non-GAAP as adjusted	 	$	331,383		 	 	 	$	386,458		 	 	 	$	295,612		 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Gross Profit:	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. GAAP as reported	 	$	76,966		 	23.3	 %	 	$	111,406		 	29.0	 %	 	$	66,432		 	22.7	 %	
Acquisition-related deferred revenue adjustment(1)	 	1,110		 	 	 	1,891		 	 	 	2,905		 	 	
Stock-based compensation(2)	 	2,102		 			 	1,752		 	 	 	1,328		 	 	
Amortization of acquired intangible assets(3)	 	8,628		 			 	8,437		 	 	 	8,252		 	 	
Acquisition and integration costs(4)	 	1,035		 	 	 	7,238		 	 	 	2,064		 	 	
Acquisition-related inventory adjustments(5)	 	—		 	 	 	—		 	 	 	1,778		 	 	
Restructuring and related(6)	 	1,157		 	 	 	5,407		 	 	 	21,466		 	 	
COVID-19 related costs(8)	 	2,880		 	 	 	—		 	 	 	—		 	 	
Non-GAAP as adjusted	 	$	93,878		 	28.3	 %	 	$	136,131		 	35.2	 %	 	$	104,225		 	35.3	 %	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Operating Expenses:	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. GAAP as reported	 	$	153,846		 	 	 	$	172,277		 	 	 	$	178,120		 	 	
Stock-based compensation(2)	 	9,601		 		 	9,321		 	 	 	7,385		 	 	
Amortization of acquired intangible assets(3)	 	4,555		 	 	 	6,617		 	 	 	7,057		 	 	
Acquisition and integration costs(4)	 	9,222		 	 	 	11,011		 	 	 	7,134		 	 	
Restructuring and related costs(6)	 	5,580		 	 	 	18,024		 	 	 	17,188		 	 	
Non-GAAP as adjusted	 	$	124,888		 	 	 	$	127,304		 	 	 	$	139,356		 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Net Income/(Loss) from Operations:	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. GAAP as reported	 	$	(76,880	)	 	(23.3	)%	 	$	(60,871	)	 	(15.8	)%	 	$	(111,688	)	 	(38.2	)%	
Acquisition-related deferred revenue adjustment(1)	 	1,110		 	 	 	1,891		 	 	 	2,905		 	 	
Stock-based compensation(2)	 	11,703		 	 	 	11,073		 	 	 	8,713		 	 	
Amortization of acquired intangible assets(3)	 	13,183		 	 	 	15,054		 	 	 	15,309		 	 	
Acquisition and integration costs(4)	 	10,257		 	 	 	18,249		 	 	 	9,198		 	 	
Acquisition-related inventory adjustments(5)	 	—		 	 	 	—		 	 	 	1,778		 	 	
Restructuring and related costs(6)	 	6,737		 	 	 	23,431		 	 	 	38,654		 	 	
COVID-19 related costs(8)	 	2,880		 	 	 	—		 	 	 	—		 	 	
Non-GAAP as adjusted	 	$	(31,010	)	 	(9.4	)%	 	$	8,827		 	2.3	 %	 	$	(35,131	)	 	(11.9	)%	

	
																						
Reconciliation of Net Income/(Loss):	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. GAAP as reported	 	$	(99,268	)	 	 	 	$	(66,594	)	 	 	 	$	(121,601	)	 	 	
Acquisition-related deferred revenue adjustment(1)	 	1,110		 	 	 	1,891		 	 	 	2,905		 	 	
Stock-based compensation(2)	 	11,703		 	 	 	11,073		 	 	 	8,713		 	 	
Amortization of acquired intangible assets(3)	 	13,183		 	 	 	15,054		 	 	 	15,309		 	 	
Acquisition and integration costs(4)	 	10,257		 	 	 	18,249		 	 	 	9,198		 	 	
Acquisition-related inventory adjustments(5)	 	—		 	 	 	—		 	 	 	1,778		 	 	
Restructuring and related costs(6)	 	6,737		 	 	 	23,431		 	 	 	38,654		 	 	
Amortization of debt discount(7)	 	5,121		 	 	 	4,567		 	 	 	4,241		 	 	
COVID-19 related costs(8)	 	2,880		 	 	 	—		 	 	 	—		 	 	
Income tax effects(9)	 	(1,170	)	 	 	 	(1,268	)	 	 	 	(426	)	 	 	
Non-GAAP as adjusted	 	$	(49,447	)	 	 	 	$	6,403		 	 	 	$	(41,229	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Loss per Common Share - Basic and Diluted:	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. GAAP as reported	 	$	(0.55	)	 	 	 	$	(0.37	)	 	 	 	$	(0.69	)	 	 	
Non-GAAP as adjusted(10)	 	$	(0.27	)	 	 	 	$	0.03		 	 	 	$	(0.23	)	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted Average Shares Used in Computing Net Loss per Common Share - Basic and Diluted:	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	182,024		 	 	 	180,864		 	 	 	176,406		 	 	
Diluted(11)	 	182,024		 	 	 	186,349		 	 	 	176,406		 	 	

(1) 	Business combination accounting principles require Infinera to write down to fair value its maintenance support contracts assumed in the Coriant acquisition. The revenue for these support contracts is deferred and typically recognized over a period of time after the Coriant acquisition, so Infinera's GAAP revenue for a period of time after the acquisition will not reflect the full amount of revenue that would have been reported if the acquired deferred revenue was not written down to fair value. The non-GAAP adjustment eliminates the effect of the deferred revenue write-down. Management believes these adjustments to revenue from support contracts assumed in the Coriant acquisition are useful to investors as an additional means to reflect revenue trends of Infinera's business.	
		
(2) 	Stock-based compensation expense is calculated in accordance with the fair value recognition provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation effective January 1, 2006. The following table summarizes the effects of stock-based compensation related to employees and non-employees (in thousands):	

													
 	 	Three Months Ended	
 	 	March 28, 2020	 	December 28, 2019	 	March 30, 2019	
Cost of revenue	 	$	624		 	$	(120	)	 	$	538		
Research and development	 	3,774		 	3,574		 	3,603		
Sales and marketing	 	2,644		 	2,578		 	1,547		
General and administration	 	3,183		 	3,169		 	2,235		
 	 	10,225		 	9,201		 	7,923		
Cost of revenue - amortization from balance sheet*	 	1,478		 	1,872		 	790		
Total stock-based compensation expense	 	$	11,703		 	$	11,073		 	$	8,713		

*	Stock-based compensation expense deferred to inventory and deferred inventory costs in prior periods recognized in the current period.	
		
(3)  	Amortization of acquired intangible assets consists of developed technology, trade names, customer relationships and backlog acquired in connection with the Coriant acquisition, which closed during the fourth quarter of 2018. Amortization of acquired intangible assets also consists of amortization of developed technology, trade names and customer relationships	

acquired in connection with the Transmode AB acquisition. U.S. GAAP accounting requires that acquired intangible assets are recorded at fair value and amortized over their useful lives. As this amortization is non-cash, Infinera has excluded it from its non-GAAP gross profit, operating expenses and net income measures. Management believes the amortization of acquired intangible assets is not indicative of ongoing operating performance and its exclusion provides a better indication of Infinera's underlying business performance.
(4) Acquisition and integration costs consist of legal, financial, IT, manufacturing-related costs, employee-related costs and professional fees incurred in connection with Infinera's acquisition of Coriant. These amounts have been adjusted in arriving at Infinera's non-GAAP results because management believes that these expenses are non-recurring, not indicative of ongoing operating performance and their exclusion provides a better indication of Infinera's underlying business performance.
		
(5) 	Business combination accounting principles require Infinera to measure acquired inventory at fair value. The fair value of inventory reflects the acquired company’s cost of manufacturing plus a portion of the expected profit margin. The non-GAAP adjustment to Infinera's cost of sales excludes the amortization of the acquisition-related step-up in carrying value for units sold in the quarter. Additionally, in connection with the Coriant acquisition, cost of sales excludes a one-time adjustment in inventory as a result of renegotiated supplier agreements that contained unusually higher than market pricing. Management believes these adjustments are useful to investors as an additional means to reflect ongoing cost of sales and gross margin trends of Infinera's business.	
		
(6) 	Restructuring and related costs are primarily associated the closure of Infinera's Berlin, Germany site, the reduction of headcount at Infinera's Munich, Germany site and Coriant's historical restructuring plan associated with its early retirement plan. In addition, management included accelerated amortization on operating lease right-of-use assets due to the cease use of certain facilities. Management has excluded the impact of these charges in arriving at Infinera's non-GAAP results as they are non-recurring in nature and its exclusion provides a better indication of Infinera's underlying business performance.	
		
(7) 	Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be separately accounted for as liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's non-convertible debt borrowing rate. Accordingly, for GAAP purposes, Infinera is required to amortize as debt discount an amount equal to the fair value of the conversion option that was recorded in equity as interest expense on the $402.5 million in aggregate principal amount of its 2.125% convertible debt issuance in September 2018 due September 2024 and $200 million in aggregate principal amount of 2.50% convertible debt issued in March 9, 2020 due March 2027. Interest expense has been excluded from Infinera's non-GAAP results because management believes that this non-cash expense is not indicative of ongoing operating performance and provides a better indication of Infinera's underlying business performance.	
(8)  COVID-19 related costs consist of higher replacement costs associated with certain warranty parts customers were unable to return for repair due to logistics issues and mobility issues related to COVID-19 public health mandates and restrictions. In addition, we needed to source certain key components from an alternate suppler at substantially higher cost in order for Infinera to fulfill delivery commitments in the normal course of business. As of result of these atypical challenges caused by the circumstances surrounding the COVID-19 pandemic, management has excluded these expenses from non-GAAP financial measures, as their exclusion provides a better indication of Infinera's underlying business performance.
		
(9) 	The difference between the GAAP and non-GAAP tax provision is due to the net tax effects of the purchase accounting adjustments, acquisition-related costs and amortization of acquired intangible assets.	
(10)  Non-GAAP EPS as adjusted did not exclude the impact of foreign currency. Had the impact of foreign currency been excluded for the three months ended March 28, 2020, December 28, 2019 and March 30, 2019, non-GAAP EPS as adjusted would have been $(0.20), $0.02 and $(0.22), respectively.
(11)  The non-GAAP diluted shares include the potentially dilutive securities from Infinera's stock-based benefit plans excluded from the computation of dilutive net loss per share attributable to common stockholders on a GAAP basis because the effect would have been anti-dilutive. These potentially dilutive securities are added for the computation of diluted net income per share on a non-GAAP basis in periods when Infinera has net income on a non-GAAP basis.

Infinera Corporation
Condensed Consolidated Balance Sheets
(In thousands, except par values)
(Unaudited)

								
 	March 28,
2020	 	December 28,
2019	
ASSETS	 	 	 	
Current assets:	 	 	 	
Cash	$	261,534		 	$	109,201		
Short-term restricted cash	4,126		 	4,339		
Accounts receivable, net of allowance for doubtful accounts of and $4,014 in 2020 and $4,005 in 2019	272,278		 	349,645		
Inventory	319,696		 	340,429		
Prepaid expenses and other current assets	159,845		 	139,217		
Total current assets	1,017,479		 	942,831		
Property, plant and equipment, net	148,815		 	150,793		
Operating lease right-of-use assets	61,914		 	68,081		
Intangible assets	155,356		 	170,346		
Goodwill	239,412		 	249,848		
Long-term restricted cash	17,808		 	19,257		
Other non-current assets	26,347		 	27,182		
Total assets	$	1,667,131		 	$	1,628,338		
LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	
Current liabilities:	 	 	 	
Accounts payable	$	203,277		 	$	273,397		
Accrued expenses and other current liabilities	186,668		 	193,168		
Accrued compensation and related benefits	69,135		 	92,221		
Short-term debt, net	31,680		 	31,673		
Accrued warranty	18,988		 	21,107		
Deferred revenue	95,693		 	103,753		
Total current liabilities	605,441		 	715,319		
Long-term debt, net	509,564		 	323,678		
Long-term financing lease obligation	2,113		 	2,394		
Accrued warranty, non-current	20,474		 	22,241		
Deferred revenue, non-current	34,149		 	36,067		
Deferred tax liability	7,505		 	8,700		
Operating lease liabilities	60,420		 	64,210		
Other long-term liabilities	65,746		 	69,194		
Commitments and contingencies (Note 13)	 	 	 	
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 March 28, 2020 and December 28, 2019
Issued and outstanding shares – 183,198 as of March 28, 2020 and 181,134 as of December 28, 2019	183		 	181		
Additional paid-in capital	1,827,484		 	1,740,884		
Accumulated other comprehensive loss	(46,139	)	 	(34,639	)	
Accumulated deficit	(1,419,809	)	 	(1,319,891	)	
Total stockholders' equity	361,719		 	386,535		
Total liabilities and stockholders’ equity	$	1,667,131		 	$	1,628,338		

Infinera Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

								
 	Three Months Ended	
 	March 28,
2020	 	March 30,
2019	
Cash Flows from Operating Activities:	 	 	 	
Net loss	$	(99,268	)	 	$	(121,601	)	
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:	 	 	 	
Depreciation and amortization	25,445		 	30,939		
Non-cash restructuring and other related costs	1,760		 	16,851		
Amortization of debt discount and issuance costs	5,731		 	4,614		
Operating lease expense, net of accretion	5,204		 	14,966		
Stock-based compensation expense	11,703		 	8,713		
Other, net	1,153		 	1,775		
Changes in assets and liabilities:	 	 	 	
Accounts receivable	70,238		 	49,754		
Inventory	17,737		 	(24,937	)	
Prepaid expenses and other assets	(18,744	)	 	(5,236	)	
Accounts payable	(72,355	)	 	(23,439	)	
Accrued liabilities and other expenses	(32,083	)	 	(15,486	)	
Deferred revenue	(8,038	)	 	6,933		
Net cash used in operating activities	(91,517	)	 	(56,154	)	
Cash Flows from Investing Activities:	 	 	 	
Proceeds from maturities of investments	—		 	10,542		
Acquisition of business, net of cash acquired	—		 	(10,000	)	
Purchase of property and equipment, net	(8,464	)	 	(6,590	)	
Net cash provided by (used in) investing activities	(8,464	)	 	(6,048	)	
Cash Flows from Financing Activities:	 	 	 	
Proceeds from issuance of 2027 Notes	194,500		 	—		
Proceeds from revolving line of credit	55,000		 	—		
Proceeds from issuance of debt, net	—		 	8,584		
Repayment of mortgage payable	(99	)	 	—		
Payment of debt issuance cost	(1,775	)	 	—		
Proceeds from issuance of common stock	7,395		 	7,740		
Net cash provided by financing activities	255,021		 	16,324		
Effect of exchange rate changes on cash and restricted cash	(4,369	)	 	(1,213	)	
Net change in cash, cash equivalents and restricted cash	150,671		 	(47,091	)	
Cash, cash equivalents and restricted cash at beginning of period	132,797		 	242,337		
Cash, cash equivalents and restricted cash at end of period(1)	$	283,468		 	$	195,246		
Supplemental disclosures of cash flow information:	 	 	 	
Cash paid for income taxes, net of refunds	$	1,072		 	$	1,353		
Cash paid for interest	$	5,131		 	$	4,315		
Supplemental schedule of non-cash investing activities:	 	 	 	
Transfer of inventory to fixed assets	$	118		 	$	1,805		
Unpaid debt issuance cost	$	1,793		 	$	—		

(1)     Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets:

								
 	March 28,
2020	 	March 30,
2019	
 	 	 	 	
 	(In thousands)	
Cash and cash equivalents	$	261,534		 	$	167,259		
Short-term restricted cash	4,126		 	4,671		
Long-term restricted cash	17,808		 	23,316		
Total cash, cash equivalents and restricted cash	$	283,468		 	$	195,246		

Infinera Corporation
Supplemental Financial Information
(Unaudited)

	
																																	
 	 	Q2'18	 	Q3'18	 	Q4'18	 	Q1'19	 	Q2'19	 	Q3'19	 	Q4'19	 	Q1'20	
GAAP Revenue ($ Mil)	 		$208.2		 		$200.4		 		$332.1		 		$292.7		 		$296.3		 		$325.3		 		$384.6		 		$330.3		
GAAP Gross Margin %	 	40.5	%	 	35.0	%	 	25.4	%	 	22.7	%	 	20.7	%	 	26.7	%	 	29.0	%	 	23.3	%	
Non-GAAP Gross Margin %(1)	 	43.9	%	 	38.4	%	 	31.8	%	 	35.3	%	 	30.7	%	 	33.1	%	 	35.2	%	 	28.3	%	
Revenue Composition:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Domestic %	 	58	%	 	49	%	 	39	%	 	45	%	 	45	%	 	51	%	 	52	%	 	52	%	
International %	 	42	%	 	51	%	 	61	%	 	55	%	 	55	%	 	49	%	 	48	%	 	48	%	
Customers >10% of Revenue	 	2		 	2		 	2		 	1		 	1		 	1		 	1		 	1		
Cash Related Information:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash from Operations ($ Mil)	 		$7.0		 		($20.4	)	 		($71.6	)	 		($56.2	)	 		($63.8	)	 		($37.2	)	 		($10.2	)	 		($91.5	)	
Capital Expenditures ($ Mil)	 		$13.5		 		$5.5		 		$10.7		 		$6.6		 		$9.2		 		$12.5		 		$2.7		 		($8.5	)	
Depreciation & Amortization ($ Mil)	 		$16.3		 		$17.1		 		$50.2		 		$31.0		 		$31.2		 		$29.0		 		$28.6		 		$25.4		
DSOs	 	65		 	70		 	87		 	83		 	80		 	80		 	83		 	75		
Inventory Metrics:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Raw Materials ($ Mil)	 		$30.5		 		$33.6		 		$74.5		 		$82.5		 		$70.4		 		$47.2		 		$47.4		 		$50.0		
Work in Process ($ Mil)	 		$61.6		 		$56.4		 		$57.2		 		$63.0		 		$59.5		 		$52.2		 		$48.8		 		$52.0		
Finished Goods ($ Mil)	 		$127.2		 		$121.9		 		$180.2		 		$187.0		 		$208.9		 		$225.4		 		$244.1		 		$217.7		
Total Inventory ($ Mil)	 		$219.3		 		$211.9		 		$311.9		 		$332.5		 		$338.8		 		$324.8		 		$340.3		 		$319.7		
Inventory Turns(2)	 	2.1		 	2.3		 	2.9		 	2.3		 	2.5		 	2.7		 	2.9		 	3.0		
Worldwide Headcount	 	2,070		 	2,079		 	3,876		 	3,708		 	3,632		 	3,557		 	3,261		 	3,302		
Weighted Average Shares Outstanding (in thousands):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	152,259		 	153,492		 	174,908		 	176,406		 	178,677		 	179,988		 	180,864		 	182,024		
Diluted	 	154,777		 	154,228		 	175,629		 	176,602		 	179,343		 	182,073		 	186,349		 	189,246		
		
(1) 	Non-GAAP adjustments include acquisition-related deferred revenue and inventory adjustments, stock-based compensation expenses, amortization of acquired intangible assets, acquisition and integration costs, restructuring and related costs, amortization of debt discount on Infinera’s convertible senior notes, and COVID-19 related costs, along with related income tax effects. For a description of this non-GAAP financial measure, please see the section titled, “GAAP to Non-GAAP Reconciliations” of this press release for a reconciliation to the most directly comparable GAAP financial measures.	

(2) 	Infinera calculates non-GAAP inventory turns as annualized non-GAAP cost of revenue before adjustments for restructuring and related costs, non-cash stock-based compensation expense, and certain purchase accounting adjustments, divided by the average inventory for the quarter.	

Infinera Corporation
GAAP to Non-GAAP Reconciliation of Financial Outlook
(In millions, except percentages and per share data)
(Unaudited) 

The following amounts represent the midpoint of the expected range:

					
 	 	Q2'20	
 	 	Outlook	
Reconciliation of Revenue:	 	 	
U.S. GAAP	 	$	319		
Acquisition-related deferred revenue adjustment	 	1		
Non-GAAP	 	$	320		
 	 	 	
Reconciliation of Gross Margin:	 	 	
U.S. GAAP	 	29.0	 %	
Acquisition-related deferred revenue adjustment	 	0.5	 %	
Stock-based compensation	 	0.5	 %	
Amortization of acquired intangible assets	 	3.0	 %	
Non-GAAP	 	33.0	 %	
 	 	 	
Reconciliation of Operating Expenses:	 		
U.S. GAAP	 	$	142		
Stock-based compensation	 	(11	)	
Amortization of acquired intangible assets	 	(4	)	
Restructuring and related costs	 	(1	)	
Acquisition and integration costs	 	(4	)	
Non-GAAP	 	$	122		
 	 	 	
Reconciliation of Operating Margin:	 	 	
U.S. GAAP	 	(15.5	)%	
Acquisition-related deferred revenue adjustment	 	0.5	 %	
Stock-based compensation	 	4.5	 %	
Amortization of acquired intangible assets	 	4.5	 %	
Acquisition and integration costs	 	1.5	 %	
Restructuring and related costs	 	0.5	 %	
Non-GAAP	 	(4.0	)%	

First Quarter 2020 Financial Results May 12, 2020

 

Safe Harbor Forward-Looking Statements This presentation contains forward-looking statements, including those related to Infinera’s expectations regarding its business model, market opportunities and customers; its expectations regarding the timing of its new products being available in the market; its ability to win new customers; its visibility into the performance of its business in future quarters based on the unpredictability of the macro-economic environment; and its financial outlook for the second quarter of 2020, including the projected revenue impact of the coronavirus for the second quarter of 2020. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements made about future market and financial performance; statements regarding future products or technology as well as the timing to market of any such products or technology; any statements about historical results that may suggest trends for our business; and any statements of assumptions underlying any of the items mentioned. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. These statements are based on information available to Infinera as of the date hereof and actual results could differ materially from those stated or implied due to risks and uncertainties. The risks and uncertainties that could cause Infinera’s results to differ materially from those expressed or implied by such forward-looking statements include, the effect of the COVID-19 pandemic on Infinera’s business, results of operations, financial condition, and stock price; the effect of global and regional economic conditions on Infinera’s business, including effects on purchasing decisions by customers; Infinera’s future capital needs and its ability to generate the cash flow or otherwise secure the capital necessary to make anticipated capital expenditures; Infinera's ability to service its debt obligations and pursue its strategic plan; delays in the development and introduction of new products or updates to existing products; market acceptance of Infinera’s end-to-end portfolio; Infinera's reliance on single and limited source suppliers; Infinera’s ability to successfully integrate its enterprise resource planning system and other management systems; the diversion of management time on issues related to the integration and the implementation of its enterprise resource planning system; fluctuations in demand, sales cycles and prices for products and services, including discounts given in response to competitive pricing pressures, as well as the timing of purchases by Infinera's key customers; the effect that changes in product pricing or mix, and/or increases in component costs could have on Infinera’s gross margin; Infinera’s ability to respond to rapid technological changes; aggressive business tactics by Infinera’s competitors; the effects of customer consolidation; the impacts of foreign currency fluctuations; Infinera’s ability to protect Infinera’s intellectual property; claims by others that Infinera infringes their intellectual property; war, terrorism, public health issues, natural disasters and other circumstances that could disrupt the supply, delivery or demand of Infinera's products; and other risks and uncertainties detailed in Infinera’s SEC filings from time to time. More information on potential factors that may impact Infinera’s business are set forth in its Annual Report on Form 10-K for the year ended on December 28, 2019 as filed with the SEC on March 4, 2020, as well as subsequent reports filed with or furnished to the SEC from time to time. These reports are available on Infinera’s website at www.infinera.com and the SEC’s website at www.sec.gov. Infinera assumes no obligation to, and does not currently intend to, update any such forward-looking statements set forth in this presentation. © 2020 Infinera. All rights reserved. Company Confidential. 2

 

Q1’20 Key Highlights FINANCIAL MARKET OPERATIONS Year-over-year Macro-economic uncertainty Managed supply chain growth in revenue and bookings due to COVID-19 pandemic challenges Fundamental demand Year-over-year Initial $20M reduction in strong post COVID-19 decreased operating expenses inventory achieved uncertainty Initiated multi-quarter working Continued focus on delivering capital improvement plan to target differentiated solutions to Incurred incremental one-time $80M positive cash impact fastest growing market COVID-19 related costs segments © 2020 Infinera. All rights reserved. Company Confidential. 3

 

Q1’20 Key Highlights CUSTOMERS PRODUCTS & INNOVATION Increased demand by Strength in Tier 1 & Tier 2 Continued strong demand Continued traction with certain operators in Q1 to North America & EMEA for Groove with substantial 600G Groove – product address COVID-19 driven operators year-over-year bookings shipped to 11 customers bandwidth growth Demonstrated superior Record bookings for XTM Completed Tier 1 initial Continued 2019 performance with ICE6 metro product deployment of 19-country customer momentum 800G solution providing subsea consortium network - with several significant new >25% network savings expected higher margin awards over other 800G solutions Continued progress with capacity growth in 2H’20 disruptive XR optics pluggables ICE6 800G product on track for delivery in 2H’20 © 2020 Infinera. All rights reserved. Company Confidential. 4

 

Q1’20 Year-over-Year Summary KEY DRIVERS REVENUE UP based on traction with new NON-GAAP Q1’2019 Q1’2020 DELTA customers and solutions (in $ Millions except EPS) REVENUE $295.6 $331.4 $35.8 GROSS MARGIN IMPACTS: Growth % 12% • Year-over-year primarily lower vertical integration • Quarter-over-quarter: >500 bps in Tier 1 subsea deal, GROSS MARGIN % 35.3% 28.3% (7.0%) 200G merchant optics, COVID-19 freight and logistics OPEX $139.4 $124.9 ($14.5) OPERATING EXPENSE DOWN due to improved operational efficiencies OPERATING MARGIN % (11.9%) (9.4%) 2.5% FOREIGN EXCHANGE (FX): EPS ($0.23) ($0.27) ($0.04) • $12.9M negative FX impact in Q1 due primarily to LATAM currency devaluations • Excluding FX, non-GAAP EPS in Q1’20 would have been See reconciliation of GAAP to non-GAAP on last page of slide deck ($0.20) © 2020 Infinera. All rights reserved. Company Confidential. 5

 

Q1’20 Non-GAAP Financial Results Non-GAAP (In Thousands) Q1'2019 Q2'2019 Q3'2019 Q4'2019 Total 2019 Q1'2020 Product 223,007 234,966 253,754 307,861 1,019,588 255,192 REVENUE GROWTH year over Services 72,605 71,914 73,892 78,597 297,008 76,191 Total revenue 295,612 306,880 327,646 386,458 1,316,596 331,383 year and seasonally lower sequentially Cost of product 154,735 176,009 184,957 212,336 728,037 197,435 Cost of services 36,652 36,732 34,336 37,991 145,711 40,070 Total cost of revenue 191,387 212,741 219,293 250,327 873,748 237,505 GROSS MARGIN lower Gross profit 104,225 94,139 108,353 136,131 442,848 93,878 primarily due to customer mix Gross Margin % 35.3% 30.7% 33.1% 35.2% 33.6% 28.3% Total operating expenses 139,356 131,754 126,907 127,304 525,321 124,888 OPERATING MARGIN lower Income (loss) from operations (35,131) (37,615) (18,554) 8,827 (82,473) (31,010) due to lower GM%, offset by Operating Margin % -11.9% -12.3% -5.7% 2.3% -6.3% -9.4% reduced OpEx Total other income (expense), net (5,479) (548) (9,476) (1,319) (16,822) (16,331) Income (loss) before income taxes (40,610) (38,163) (28,030) 7,508 (99,295) (47,341) NON-GAAP EPS impacted by Provision for (benefit from) income taxes 619 3,855 2,421 1,105 8,000 2,106 $12.9M FX loss (7 cent impact Net income (loss) (41,229) (34,308) (30,451) 6,403 (107,295) (49,447) to EPS) EPS (0.23) (0.24) (0.17) 0.03 (0.60) (0.27) * For EPS: Net loss quarters calculated on basic shares and See reconciliation of GAAP to non-GAAP on last page of slide deck net income quarters calculated on diluted shares; full year is net loss and thus calculated using basic shares. © 2020 Infinera. All rights reserved. Company Confidential. 6

 

Revenue by Region & Revenue by Vertical BY REGION Q1'19 Q2'19 Q3'19 Q4'19 Total FY'19 Q1'20 AMERICAS 45% 45% 49% 52% 48% 52% APJ 16% 15% 9% 10% 10% 16% EMEA 34% 31% 35% 30% 32% 27% OTHER AMERICAS 5% 10% 6% 7% 9% 6% Grand Total 100% 100% 100% 100% 100% 100% BY VERTICAL Q1'19 Q2'19 Q3'19 Q4'19 Total FY'19 Q1'20 40% 42% 44% 39% 41% 47% Tier 1 44% 43% 37% 40% 41% 33% Other Service Provider 6% 9% 13% 13% 10% 16% ICP 10% 6% 6% 8% 8% 4% Cable Grand Total 100% 100% 100% 100% 100% 100% GAAP revenue; totals may not foot to 100% due to rounding. © 2020 Infinera. All rights reserved. Company Confidential. 7

 

Q2’20 Outlook NON-GAAP Q2’20 OUTLOOK REVENUE $310 Million - $330 Million REVENUE Flat to down sequentially Growth %* +4% vs Q2’19; (3%) vs Q1’20 GROSS MARGIN % 31% - 35% GROSS Improvement on better mix. Range considers MARGIN supply chain impact of COVID-19 risk OPEX $120 Million - $124 Million Streamlining OpEx while maintaining R&D OPEX OPERATING MARGIN % (4%) +/- 300 bps investments in innovation pipeline * Growth % at midpoint of Q2’20 guidance compared to actuals of prior periods See reconciliation of GAAP to non-GAAP on last page of slide deck © 2020 Infinera. All rights reserved. Company Confidential. 8

 

GAAP to Non-GAAP Reconciliation NOTES: 1. Totals may not foot due to rounding 2. Amounts for Q2’20 outlook represent the midpoint of the expected ranges 3. Non-GAAP metrics are reconciled to the most directly comparable GAAP financial metric 4. For a complete reconciliation of other period results, see prior quarterly earnings releases © 2020 Infinera. All rights reserved. Company Confidential. 9

 

Thank You