INFN - Earnings call transcript Q3 2018

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Operator

Welcome to the Third Quarter Year 2018 Investment Community Conference Call of Infinera Corporation. All lines will be in a listen-only mode until the question-and-answer session. Today's call is being recorded. If anyone has any objections, you may disconnect at this time. I would now like to turn the call over to Mr. Investor Infinera of Hustis Relations. Jeff begin. Jeff, you may

Jeff Hustis

section Quarter Thank conference XXXX CFO are Investor Third today's you, Welcome to Commentary Relations the in Operator. of available our call. and website. Fiscal earnings Infinera's of A of copy

as various are and earnings Executive to recorded will results quarter to our includes materially and Actual call statements earnings forward-looking or our today, Please include call statements of as our CFO filed could factors, our available to certain third over directly will Regulation for will in measures Fallon. Pursuant Officer, now this of not the risk financial about obligation about the of financial in turn measures. estimates Tom from and G, strategy, and filed to plans, its regarding most cause Infinera that non-GAAP our the CFO any Additionally, to reconciliation that may of update expectations. events call products that are the comparable after financial and well current non-GAAP as has provided Chief may fourth statements this as arise as Commentary. statements; quarter of and the call. Today's limited made or included including these statements a differ measures release outlook. from These GAAP I that uncertainties well Today's but today. reflect our be to website. be revise reminded X-K undertakes circumstances integration all Coriant, plans recently release business, date no and Infinera being differ as management's most subject furnished with Commentary is conference synergies, materially statements acquisition call Infinera's as XX-Q to projections replay results constitute forward-looking statements to, result risks the and

Thomas J. Fallon

conference and third you quarter on call. joining for our us thank afternoon Good XXXX

and Welch our Dave Feller, Brad are today Heard. COO, me Joining David

of to synergies start the updating that Coriant. over these as of intent Infinera in this our I'd of engine stronger With with most about as some win on event expanded business future. Tier-Xs second, positioned allows like you'll about the model. the you by closed, me ICPs, each the impactful that acquire is of deliver significantly the should solutions vertical a now third, I'm scale a Let announcement profitable with third our quarter, customer end-to-end so understand so achieve technology. the talk portfolio consumers the a an market; cost-savings we transport acquisition, largest with first, of When a cornerstone company did broad end-to-end significant near-term; excited three traction differentiated announced commitment and investments to a integration opportunity needed to optical we from things: acquisition every deliver in the to to business of portfolio areas so why to the

goals, are synergies, combined (XX:XX:XX) committed in we reminder, and expected our XXXX. place these have to order over on first synergies deliver in executing In million XXXX million quarter-by-quarter $XXX First, $XXX in additional a and to in on phase as achieve detailed plans now. XXXX and synergies we're

to (XX:XX:XX) millions specific COGS across in taken We rate, dollars lower supplier company. negotiations already reductions through combined and of have run the actions achieved spend

of by achieving XXXX should XXXX. we significant A expectation drive than this deal, the through This month non-GAAP after little expense with expected the plan plan will a XXXX. a on line XXXX see continue delivering over execute end and the base. to fundamentally our deliver bottom relentlessly in improvements to enter more and We lower now profitability to of synergies closing

met and in and deliver hard determination the driving synergies on Infinera by results Coriant with established I to team a the and away and our have we senior In leadership decisions, Chicago mix team level. recently came make take of passion next the addition Infinera to the new the front, personnel. inspired integration team's This to

and the our I ability enthusiasm to in XXXX Coriant that talent realize leadership, energized This infusion capabilities the today strengthens the that employees senior company. Beyond to the beyond. order opportunities to bring work required am by address and is in

to Now customers.

in We that their the that actively am we're have place, delivering existing win engaging new our help is value our and if combined I acquisition customers positive. exceptionally by unique on of has been a solutions clear pleased the regarding Customer Infinera. customers vision to new markets roadmap the already opportunities. feedback and

for largest have service automation To technology, differentiated software-enabled Tier-Xs new pursue. In solutions customer with combination Infinera's the expect operating to that a traditional utilize Edge and expenses. customers IP approach. date, bolstered disaggregated to leading the these us has providers see strengthened efficient We their our to to of open position software capabilities world. in to optical lower and solutions solution offering been value several positive now end-to-end the a with hardware opportunities with interaction Coriant

more customers access. offering stages December combination example, they than to six for for to their on deliver our XXXX. FY and access XXXX. our and our and of cable three Groove, Layer insistent world. customers fiber-deep in have DCI ICPs added in in ICEX carrier nearly services. a For We X to track opportunities top were in operators that metro, after the we long-haul testing we an boasts the which we metro Vibe XG in That units our of high-density applications, POD XX is from These delivers Ethernet solution improved the installed Vibe reviewing equipment position for the is In lab. now transport, which solution revenue have with unique emergence for (XX:XX:XX) the double Coriant, with of aggregation product, opportunities announced recently deployed the of and late is new their DTN-X metro portfolio, have be planned In in new

we Infinera's across integration our have of broadly Finally, advantage in to structure technology, new on vertical now deliver so of Doing scale. leverage engines by both substantially take portfolio. margins combined company's we drive power better and the of as (XX:XX:XX) integration place the will optical the cost detailed lowering plans

announced, we high-capacity gig. traffic first a ICEX, on Carrier's recently As an architecture for live optical designed of schedule builds Telia necessary mTera set ICEX of the we network to to and win believe full leveraged industry's have an all model. XXX acquisition differentiated platforms, gig technology which wave, and on and on be beginning customers, the market upon will end-to-end based our for across to In to summary, to segment network, now XXX Groove, We deliver in customer carried ICEX business including is of us the remains scale build and ingredients engines. a industry-leading needed brings XXXX. this delivery and the per optical create

million, to region. Revenue Now was continued progress. for in QX, $XXX and is overall Infinera which a of X% growth strong stand-alone our by and QX quarter driven year-over-year representing accomplishments APAC in strength

subsea, roster complemented by guide, new last outlined our new were while led ICEX footprint by and to our completing QX. lower with With for In QX product timing. we new a $XXX XX typical gross with midpoint midpoint. than we clear trans-Atlantic and due margin optical ICEX XTM in and million optical In As transmission customers wider opportunities set the was our deployments us combined the QX, portfolio X business of range, generate to us of than fell the of performance earning record the our a came and had beginning terabits trials revenue capacity significant trans-Atlantic better call, a fiber. ICEX our QX and ramping for few XT-XXXX subsea refreshed a better our to slightly cusp on delivering revenue. establishing XX $XXX Revenue guidance earnings new at continue AOFX-XXXX deployments we bring performance million timing is trials. to customers. products added QX range XTM earnings end (XX:XX:XX) with that that ICEX by to In expenses another XX of and than leadership, leadership being single down this quarter we key and enabling a

For $X proposition segment, value of the completed Open, customers who awarded our XX our to Instant ability adoption have Bandwidth to that With of approach have upcoming create quarters; build QX. anticipate leading initiative. trials key progress a Optical our three being they revenue of leadership leadership and performance the trials Open opportunity Bandwidth important to forecast wins performance by look us a proven we the we criteria, over currently a as In for is optical to Open and market With Instant availability. value without The XXXX, year enhances are in how to and generate (XX:XX:XX) rethink enjoy of subsea XXXX. Instant industry-leading with buying opportunities penetrated. Bandwidth is to growing win in market, XX% also the billion disaggregated buy networks not or portion building optical expected yet most for access of opportunity and accelerating deals to create we spectral fastest customers will create the including success be unique infrastructure. approach. commitment we also customers first next markets (XX:XX:XX) Open that rebuild connectivity ICE half recently is exceptionally to about the and and is the our they grow see in in the ICE our ICEX's ICE have utility-like have having efficiency from. year. subsea and with they we Open the ICE ICEX important Open customers pipeline of industry

QX, flipping the utilities XXX% use, customers with by capacity, in is it. terabits their actually have a than shipment XXX adopted like Instant for the is of capacity been which X.X for. an terabits installed complicated This end of need of capacity base only embedded creating customers more haven't year almost Our only XT-XXXX, switch. has about much which other this paid being will need of all To And not began the with platform, terabits to pay when our we Bandwidth. XXX installed date, capacity

of understand the customers scale need having able being ever need the to box. the they without value will capacity to deploy today with they the Our touch

of the this expanded attributes While margin network future design. to software value delivers margins, we usage-based proposition pressure to Combining short-term move leadership, in us a as customers of our that our optical puts create in the on approach of expect QX. our Open XX% ICEX deployment QX grow unique carrier customers, ease from to to around disaggregated networks to capacity and with and Instant Network of year we this shipments our

the we're and announced product they impact until is decisions when seeing better track the but to ramp with larger acquisition we some than future company's we on to ICEX their the market, plans out understand into made and purchasing We expected. successfully turning be we are the continue the delay While strategy anticipated customers direction. this combined

top and these is spending specific plans. with our priority Our time customers clearly explaining

top near-term Infinera's meetings long-term the date the we I into the work to do in this been am to reverse strong have We're track challenge expect line integration, pause. our In to XXXX remained we confident exceed conclusion, as one While on committed the thesis positive, opportunity. and deal month in synergies.

have greatly increasingly our are opportunities our margin base Tier-X winning Network deals. and Instant customer We new time. scale significant are which over upfront while unique based based compresses expanded creating margin on model, ICEX accretion These

integration the people with have team we ICE we and who demonstrate in to plans our of opportunity And us. have drive to broader continue and believe passionate before portfolio. vertical leaders optical a leadership that specific have We across

and to the prepare never and with their commitment I'd With about the financials. to opportunity. ongoing we a like XXXX, shareholders our now materially to we for future. as call customers, that, partners, materially over XXXX Brad Infinera thank company into more At a I'll different finish better to employees thank Infinera turn our have so been do excited we to As our to their for and launch discuss dedication.

Brad D. Feller

ICEX our the some for Thanks, on QX, highlights many website. the $XXX.X we a of Relations ICEX in available Commentary XXXX. share will color of The good QX a results was Tom, In as the year-over-year increase Infinera outlook company AOFX-XXXX QX, XT-XXXX new was I recap new for sales and for sequentially. revenue business, representing customers QX combined Investor the quarter CFO and quarter, outlook detailed XX our platforms. X% another everyone. and X% on in core our QX discuss added afternoon, Today is our and the decrease for on million, provide strong

driven strength technology market, win in new than as with quarter, have also the by I'm continues and customer overall new Our ICEX, have begun large to ship. recognized APAC the one we higher quarter some largest Tier-X excited our be and from be not guidance. about the was our in decrease to since which in from both end piece region won strength from Relative on the which a deals of to the yet order the cable Despite an Asia. more the large cable This the meaningful with shipped. This spend our received vertical. been Southeast revenue offset sequential in of order by a at from experience to during come caused first strength ICP continued revenue This as and has to did delay lower customer, low which in we we year. was volumes second of anticipated tends our half had customers revenue lower

quarter higher the XX%, Bandwidth strong turning end our margins; QX high gross margin largely sales. range in of to attributable XX% guidance near XX.X%, non-GAAP another Now to of Instant to license of margin was

earnings on quarter, in several pressure mentioned deployed the we with which but come them revenue gross opportunities starting deploy We these last and over represent call we the opportunities of expansion in in large anticipated several margin networks in more margin new on third growth for August, time. would the both of As short exceptional footprint to QX. put term to

on costs only we Initially, are being unique to the had will overall In customers provider service should newer sales revenue the buying instead deployed like all Tom Instant model add substantially utilizing us capacity Over starts time, our upfront because capacity to line however, XXX% percentage customer mentioned, licenses to with. maximize lower Bandwidth portion the our the This this a products margin our margin Bandwidth benefit market ICEX deployed of and for addition, of are incur the as model targeting by of portion their the margin recognize full gross of from cards large the model allows networks. historically. they Instant as deals. customers buy

drivers down $XX.X to range. from million $XX close our to per X.X% we and as $XX.X in Turning from loss OpEx, between we On incurred expenses net compensation below In of non-GAAP loss and million operating the scrutiny QX, expected. with a loss of share, costs metrics of down non-GAAP were from a in basis, for spent net had $X.XX every and stock-based the closure we the compensation of million share, the our better on our acquisition-related other basis, adjusting our both as per with forecast. expense, stems revised QX, a the GAAP in difference than one-time QX an based million benefit year amortization the operating result a well largest intangibles non-GAAP the of GAAP being and of anticipation $XX dollar of incentive results. $X.XX guidance acquisition, This on accruals of

are I market their With broad excited solutions the over significantly and Cloud the several portfolio to QX, time. outgrow nicely fill look complements record the opens Groove and opportunity not our of addition of chassis Xpress at a future ICPs customer quarters. with to and opportunity we level current DCI the customers. believe over our that solutions in opportunities transponders about chassis I'm these of Coriant Shipments base, to forward with were Groove the

solutions. metro tool our In the outstanding addition, an to the provides attack for fast-growing existing core, metro addition a to us mTera

and our for company ultimately Finally, suite another service brings the with automate in driving their saving automation portfolio. the providers costs, to that to strong provides SDN networks, software increasingly looking operating tool Coriant efficiencies them

support will for side to spend, have new well a pronounced challenged arrangements. as phenomenon as time taking couple that Coriant I of this products, assess most believe contractual is a paused a company, aligning our plans expectation my as existing is as roadmap was we revenue on endure QX. combined in forward, and customers quarters that Looking temporary the

We and working by the through are engaging Infinera. the this actively of customers with new capabilities pause demonstrating combined

that opportunity uncertain they met the have spend. turn we far still from of so will in are back when the they While we customers the is combination, feedback believe on

are outlook, several short-term inclusion win XXXX. Also plus $XXX minus million. current of are our revenue items these will these two will as quarter, thus significant and QX structure million, of to a is have or the operationalize of and the our the of for margin new the likely not of though fourth for The $XX expectations on complexity levels. revenue these size the on continue we deals, cost pressure combination the looking business While until Coriant given opportunities, putting acquired impact they

vertical the and We ability gross improve in business synergies our through acquired the are confident integration. margin time over of to

wins of further Instant impact margins Bandwidth-enabled ICEX pressure on addition, put continued the levels. In footprint margin to lower hardware the shift gross will new from and near-term

of we release products represented half customers utilizing all service first for But XXXX with are Instant Bandwidth. the customers primarily substantially full Bandwidth. of systems the the versus ICEX-based Instant utilizing The market, provider seeing

systems the these margin of exceptional. follow-on of sell turned Bandwidth are the our combination We The initial our the amount bandwidth, are (XX:XX:XX) minimal excited benefit an large up many in is ICEX-based even with opportunity past, these X offerings better and term Gen to to experienced solutions. As ability our forward-looking licenses of impacts our short organization, focused with being with about In Instant minus initial on continuing rightsizing or non-GAAP estimate XXX XX%, portfolio the combined we basis us optimizing phase (XX:XX:XX) of initiatives. a fund margin of solutions and QX, the we points. lead begin plus QX gross as product the key synergies, to to on while are drive and

gross due of fourth the to primarily total increase million With loss result line on the we the non-GAAP tax both the operating to significant the million, debt to respect for expect Putting local the combined expense or throughout will company minus as result, or initial in to $XXX world. interest approximately convertible be it has a plus based quarter. a project of and XX% Below NOLs we tax, quarter. thus approximately of ongoing $XXX the income the entities fourth we continue our expense a anticipate business, raised million. to currently cost-plus operating we of largely and the quarter, in expenses driven together, interest combined be tax margins As non-GAAP lower all $X (XX:XX:XX)

currently plus per $X we to results of quarter. tax of $X expense of term lower the We couple other or a minus amortization $X.XX approximately acquisition-related million share, loss expect pennies the to with primarily per intangibles for QX, a near million In non-GAAP be to due expenses. significantly project and stock-based GAAP compensation,

is My XXXX Looking ahead, initial based we substantial initial that the will of multiple create are we across the large, me some spending that first revenue the well-positioned up QX markets the in expect a differentiated but acquisition with scale and opportunities QX. additional revenue confidence we the time. recently to begin have pick which more fact starting in growth in expectation rebound a $X.X and can achieve excess customers of multiyear in on since XXXX XXXX, to on growth positive for conversations billion, is with closed, revenue provides that during end of additional business won over several half Giving geographies. profitable

cost new significantly plan footprint improvements to portfolio, yielding drive gross to activities For we through which lower we and existing to will plans new continue XXXX. significant supply gross chain place end-to-end margin rationalization cost to well infrastructure, new be with in our and fixed reductions as customers. as leverage, both margin, win aggressive With our have in

we being win market. allowing Instant margins key will as committed down this expect a needs, to year. anticipate enables the on we Bandwidth, results in on be We to course Only delivering Despite should the deployments. over this we to customers goes to right by month market, and allow the differentiated the drive continue to pressure, track is market long-term I traction very our will one are aspects is as to the to of the benefits the relation of steadily in non-GAAP drive addition, improve, the the on the differentiator utilize share profitability In as to the expenses allowing integration, execution gain including and moves course to us expenses, This pre-deploying our the network usage-based believe we on synergies. Infinera drive under We well market of after end continue them of win the results. year. we of to for as the that synergies their the over the In responsive to believe realize Coriant currently us customers' that close the on year significant achieve their operating strategy XXXX, key bottom-line bandwidth acquisition, to believe drive deal.

First, to significant pleased work say the to there have than proving to XXXX synergies are the already I'm anticipated. that opportunity, done we larger been for be significant validate synergy and

work customers, needed have grow only will the significantly grow top will us in revenue. to Second, engagements to deal. and win gained of we active with in make continue the allow our the to the the we as a result This has that been to base we The but we continue very believe allow as not investments and Tier-Xs line, customer new also to also both I feedback positive, have to market. us customer the ability these existing and ICPs

call. sustainably of with lower to win continue generate which it acquisition. the industry. financial ultimately vertical over I cost are a substantial better structure, be the the to insert the leader like we allowing we confident to With of capabilities will integration differentiated vehicle our deal the I'd through expanded turn operator be unique the near-term manufacturing that, the conclusion, into in (XX:XX:XX) I'm Coriant once to realize time. in challenges make work to to margins our will opportunities of Third, the portion the closed, over begin of ICEX, performance Coriant and Q&A infrastructure portfolio. strong and the the believe technology to market progress our magnify we In significantly the of in now position and use us will again development leverage the This our the with in

Operator

time, Thank you. you and we In one And come with ask interest first will follow-up. one question Sachs. Please our keep that Hall do question from Rod ahead. the go of it to Goldman

Rod Hall

question. for thanks guys, Hey, Yeah. the

So and anything like are you in what wanted I guys you of what December, I there, tell free I on Brad, anticipated. kind guess, given can us you looks guess And think maybe ask I've you a follow-up. weaker got then to flow the you're thinking trajectory things cash than about

Brad D. Feller

Yeah.

a burn clearly the Rod, with in working the can there. tell we'll of the cash, So, expected the of the of fourth off close an reasonable after as are of did those we quarter. $XXX over cash, plan. million burn it's piece quarter We're even I in of synergy kind cash. that lot of the We with paying but put part clearly so can enter a Coriant the We'll actively amount synergies opportunity, results

Rod Hall

to think that back you when it's you And like Do us just can get Brad, year on middle think free cash (XX:XX:XX) you next through idea any the give do say what there? trajectory positive you of or – flow?

Brad D. Feller

Yeah.

we that get it's profitability generating in the of or will back non-GAAP be said the to So to start early it's fourth again year. the touch-and-go expect whether we've end cash It we by XXXX. quarter

Rod Hall

Tom? – that now you're guess, thinking got feel business the two bigger. but how it's that this them the strategically, now this you business you've combined you to for is set strategically Do do then the is after – lot order do really other much years, And Tom, positive more that win look you to to go wondering like we've feel I that or in larger you if now? company and about guess, trajectory Okay. strategically customer a you one's need on been I to the – really curious what Tier-Xs entity, out them have guys how are three important thing the Just thing a other think the customers

Thomas J. Fallon

Yeah.

us deep Coriant bring the new with continue around CapEx types traditional markets, some think Tier-Xs in that we to significant to Tier-Xs And the world. that drive going America that We're of drive need significant to But it's to also still I of I of Tier-X our but to in us. size, complete to continue of with very our brings think relationships And imperative and about our relationships to to At the the portfolio all we're in customers continue the We not of disaggregated. is important have now relationships to that things strategically only the and we're Tier-Xs long-term Tier-X. one North some think classification relationships. scale outside – but large-scale Tier-X I are spend them continue end. satisfy a Open, going end all industry. the to overall two-thirds to the should win drive and going they with

Rod Hall

because suck development reason little a we're this, lot worried. And that resource, let and me know to tend up but of just you I is Tier-Xs say ask the those reason, know question and I the a

be you that I guys X worried Tier-X customers little out and to think are some you investors a the because those scale. about over-rotating bit to people what need may if happens there

Thomas J. Fallon

certainly, to over-rotate going Rod. Yeah. not We're

We portfolio as by and Tier-Xs The combination it. have being is bought layer around top of the the two, SDN an does a end on today have orchestration we the world with of that side. portfolio to exceptionally Coriant end good

was its a Infinera own challenge didn't to have I we think on end. the had end significant that complete

for in I mind don't. huge Coriant start money both talked of challenge I and term? private eliminated that's been We've we've going as in company, the think I those my clear was us they that owned customers. that think were to to abundantly Do equity these the detriments. creating a had relationships are short

it. earn the largest seat go carriers We the to have a at now with the But we in table world. have

we and that a been bread Coriant in to and that's Tier-X butter. a a leverage place think I my ever we've in separately, our receptive both Tier-X we've start mind to have from been. continue position a From We what Infinera as perspective, and stronger wants done audience good and much than

going there's based to lot to traction win win We and to a going think of market Open I a And upon that in actually new be continue opportunity. that. are the we space, of and disaggregated creating amount huge think business, share I that see I go and

Rod Hall

Okay. Appreciate it, Tom. Thank you.

Operator

And from ahead. Bank. our Bhagavath next question comes go Please Deutsche with Vijay

Vijay Bhagavath

to Tom, hey, team. Yeah, good and afternoon, your

Thomas J. Fallon

Vijay. Hello,

Vijay Bhagavath

Yeah. hi. Yeah,

I think line, with well-defined bottom on for – the investors. very having is deal and synergy us like question also and important targets, sell-side any line my top the for on

us objectives walk line. the of bottom just synergy near-term and Tom, line So through, some on top

new like new in or objective Just the on brainstorming the the base? bottom upselling surgically and Tier-X like the line top Coriant's line walk be here, the synergy line would Thanks. near-term insertion like some of Coriant would line points example, your Infinera for attritioning near-term Just and logos targets. through top customer perhaps us And chipsets adding photonics and into inserting bottom Coriant into be, Coriant for platforms? portfolio, it

Thomas J. Fallon

to I'm about and he's line question top synergies. The to bottom to the line David integration Yeah. the the the answer driving I'm and talk going ask going guy because that's the

opportunity. there's I On top huge amount line, think of the

do The consider first around to turn we dis-synergy. would thing or pause this is have I what

to Marlin QX from in in QX. base, and Coriant. announcing from it think prior a clear As amount guys prior that was in bookings it there starting And I saw the over bit actually In we started significant that buying we've And customer recover. to that's think talked concern took of to was were think started when an of PE I Coriant the I in us customers, we dis-synergy it's February, anxiousness. creating

expect. or a gone that recovery QX As to talked would historically and were they we though we're in the not have to seeing at levels before customers, we

one mentioned work where stages approval. that I long-haul I in the and think opportunity are opportunity, to us the Coriant huge there's the final of for testing we with

Coriant of our the opportunities XG. also our talking there that over portfolio. on Vibe them insistent we of working And about lab. a end the new Coriant mix for lot some the and meeting, In with are are of getting customers, of their There to larger team carrier they the ready migration their portfolio. POD are lot into had We for leveraging a by were the and we services

and just great of software the synergies. hardware. cross-sell talk David, leveraging bit a opportunity a takes time. you for if I It the and think about portfolios, for there's a combined great would little both opportunity from cost

David F. Welch

Yeah.

of as Tom the targets we that good – we're had news of kind Brad the mentioned think commentary, for we I set in and synergy are XXXX. ahead So is

outside functional and on in, days we're numbers basis. it's the that's from XX dedicated relieving right process we're that's in they has a clear that a ensure results. put by deal experience, operational conservative. but those Examples targets functions, prior we monitor weekly two only and feeling of XX up actually the have We Everybody we were efficiency duplicate yielding customer obviously (XX:XX:XX) and a bottom-line to that being audited again confident team teams, consulting getting absolutely firms OpEx, perspective and not to the

are G&A, we those that marketing, areas over-achieving So like imagine. in and you can sales

achieved, tell have feel on and those third key as and are quarterly synergies a you already know we nice forward. both you As take again, the going the with look as second mapped would days first done a some I anticipated we terms a elements, basis, sitting more as at in we supply like of fourth quarter, through and partners well we get favorable we've contract inventory, partners, that you entity for cost blow we a chain so as XX system get schedule. combined take the our negotiating in job have and quarter, then those the ahead the quarter, down to when out as very our while manufacturing

moderated I continue and in Brad QX, beyond. that mentioned already OpEx. you bit in you'll see that QX Again, of a think saw

So...

Thomas J. Fallon

into track, now to I we've historically is have very of from putting the continues into working allow Coriant to plan on it proof platforms, a I and traffic bit in but remain we it nothing part on will Yeah. ICEX including frankly yeah, internal of committed to that believe that. We demonstrable Coriant what ours carrying proposition that value lot Vijay, that the line a done, the done the is into of In you the integration structure am about with I long-term has – got our been. Groove, with incorporating a mTera specific did why plans Putting it's ICEX engineering is are explicit asked teams ICEX imperative. deal. points, regard, cost to vertical of so the and mandatory this to inferior be the quite quite what of ICEX. consider we doing by XXXX. Infinera in part live move we're until more

Vijay Bhagavath

Okay. Thank you, helpful. very

Thomas J. Fallon

Vijay. Thanks,

Operator

ahead. Simon question the from Raymond Leopold comes And Please with James. go next

Simon M. Leopold

in of understand wanted customers strategy. that and where maintained. my see which from product be with communicating should product would you priorities, part terms or hearing customers the I but for eliminated long you how milestone is and the wondering your were regarding question. which taking be of imagine timeline process would when to pruning Thank just you'd that of to set customers and communicate would the to process I take

David W. Heard

Yeah, is it's Heard. David good a This question. really

of transaction, October. So the on again, we the closed officially obviously, Xst

we a So of view preliminary that. had together actually

that both and a in quite think micro overlap. less case space, it than in done think there's in end-to-end this of I is in both have in integration really terms solutions uniqueness And bit XX% typically I of deal our this the deals versus macro space prior the been is in product telecom vertical this overlap.

that is get we of And that that unfounded saw to customers bit from so nervousness a with some and we roadmap out the when them have actual dialogue. our

dozen out XX to XX and going imagine would So get We would capital first them of of budgets able that had days, those see out into remainder continue hot to quarter this through commit as they and been up heavy the to forward. already be customers. I discussion. their we to be in quarter that couple to first that lined we've able a have of the

as history there we similar in when product pause in or similar our a, overlaps micro, portfolio. in macro, particular albeit look at look were well think greater I it, again call orders; in those deals XX% at and that the as temporal cases, of see effect of we the

obviously, portfolio, going synergy drive focus end-to-end as well the because, a on that scale as integrate economies forward. big growth and the we we've of got business, as the So then that's revenue the real create upside in

Thomas J. Fallon

And Those now. out that as what's product as their positioning And this not David about applications. second about only overlap. to can, there's right, XX% little to were have a Yeah, we're three only worry concerns. where customers customers my customers and overlapping time a we're you, from but bit much we said, a to Simon, as listening of spending we're have you're a source we doing at, laying customer all strategy have as think here's base, with I us product what

So would far, overreactionary. anybody I consider do seen haven't I anything that

term. is We decisions are made of some customers process in that going that hurts We've nothing in about talking the short forward; and already what isn't customers. to the

global anxious We for have XX% January, our obviously we'll the by meeting of the and a that because in time middle sales hunt. and guys sales force out loaded go be locked sales to are and

Simon M. Leopold

That's Great. helpful. very

now cited Brad So $X.X XXXX at deal $X.X the call about the with pause. expectation a to we're follow and rate, the when looking gap announced there's you had and at exiting a XXXX billion, so billion up, an in and you July, at of indicated run

XXXX? pause see pause the help the sense makes us that quarter. as you the you this to current So for see what understand we'd Could affecting delta me

Thomas J. Fallon

Yeah.

it's – me it let explain my I think perspective. from

than the optimistic to of It's at but magnitude, too particularly some we QX, – the look pause. over set of not benchmark of We rising pause be on negatively in and if expected The overly pause creating Coriant we synergies bigger a recovering and want appropriate a surprising. there's don't levels amount much, history, you side always a is had anticipated. actually

– see rising QX said revenue the we call QX. carefully we actually As on in said, over

But that We profitable Of thoughtful than think later. create to next year historic are necessary moderated to numbers. can we to typically we're do will that. on but those Do down will do. a well synergies a an Nothing company exceed I overcommitting don't I trying of view see until course conservative drive rather to to back there's relatively I we to a increase touch the I by to sooner in XX% industry is off QX If so that, take in we done, opportunity serve numbers done take QX going a it's that exceed? and levels, that's go starting have approach. anybody QX.

Simon M. Leopold

That's very helpful. Thank you much. very

Operator

go Our comes Henderson next with from question Company. & ahead. Needham Alex Please

Alex Henderson

what for I quarter guide? what's quarter? fourth is, the tax interest off fourth basic the what real assumption us just Well, line the basic I'd count with your and fully is, And share some be the lowball stuff. the go income share and diluted expense start Can for thought in would line and tell the you your count

Brad D. Feller

Yeah.

So XXX. million. expense but the then And a tax rate not interest past, interest about and share necessarily The the million is count, of Alex, is dollars. $X is income similar net couple to

Alex Henderson

the if would were what profitable? count And you be share

Brad D. Feller

shares. It would million add another probably XX

Alex Henderson

see the here, you then And the looking XX% look first for into or bit in and your CY little on year? quarter for service? improvement XXXX much that a Okay. of for a margin the get XXXX? through do trajectory you the as trajecting margins? go can we Is And similar service? the of much when think And talk most at the improvement the you in we're coming fourth as product you How out can about that do matter number, even across we – product the amount how is how side versus Thanks.

Brad D. Feller

Yeah.

side So, chain in going and things things, and Alex, organizations, about look of From both is things. product margins. all at people overlap there. are depos, a talked we the but those the in on amount supply side be improvements infrastructure service from two getting of when aligned, synergies from services different product driving of you fair perspective, there'll there both out a Obviously, that that also a

than think changes you'll I things going year, see see significant continue make the on both. chip as on. much improvements away are next historically, higher but to you'll the product been but margins us in into see opportunities think you'll I goes year at both. starting, have So as the margins services Obviously then And they

strong. to very David but some have far perspective things an work will so some system, of good, been very the the As inventory mentioned, the negotiations through from take time

a from perspective Infinera. do that partners the with excited supply business new great some have to are We

Thomas J. Fallon

script I of going XXX% talk understand. that huge X,XXX full, important it pretty Yeah. When lace of I this tried our I comment think Bandwidth need a that but want buying to out explicitly, instead anybody this so on I products is about margin. to people is opportunity. And to Instant my with through

of of see I design? a to market when pay it's for if a we I'm I, time If for at what to only wouldn't I the usage-based need moving network point paid First why the go I'm all, operator, available, usage-based design. it. getting

the a that's to our do with the that I in and people going trend can we're infrastructure. grow, that is think industry only this

our terabits. card reminds But Second long XX% of a of X.X cow, it out of that and XT-XXXX holy back year, The much? bandwidth It's While people the line too just a growing go is – XXX us much me goes for that become too XXX a much it (XX:XX:XX) take told was for base lot to the way XX% DTN, to line like, gig. capacity. we too card, not gig could who use is with enough. doesn't AOFX-XXXX when all, – number (XX:XX:XX) introduced

next Does Instant the on opportunity. for, it Instant I a with continuity us opportunity going Absolutely. out in XXX the a painful? a Bandwidth Are We are. our to about only margin creating Bandwidth need terabits staggering it us. XX% new six XXX of gig months with high When it's upfront? Absolutely. terabit, it's future? XXX% capacity with very, cost platform, their of they we're margin franchise and buying a we think paid Is or in coming very

it's really is bandwidth a high we to the remarkable. anticipated that for fact up, I while you XXX% So gone understand it's thing go to think that that to important

Alex Henderson

around around and starting clear, to that growth XX-ish be product off on the are ballpark? service the to XX% band Just is in – we growth, there XX%

Brad D. Feller

on and side. services little side Yeah. I on a the product little mean, lower it's a higher the

Alex Henderson

you. Thank Perfect.

Brad D. Feller

Okay.

Operator

our And with ahead. from question Please Notter next go comes George Jefferies.

George C. Notter

guess on want $X.X the $X.X Hi. decision billion to a byproduct sure billion make the more for or more sorry, was rate. that integration that I just has wanted guys the do to, deal. I that being XXXX, we was related like you a I not I yet. guidance X CenturyLink with sure that assume just want that comment a number kind Level about weeks a run number made what vis-a-vis situation of purely little guidance Coriant isn't CenturyLink on And that guess, the I all, But get thought clarity a that. and with of the billion lot. – made is Thanks know issues there $X.X the I nothing to clarifying of that the a I just having this side. to X ago Level to make at just

Thomas J. Fallon

to new we're great for long great been not continue They nothing update with continue CenturyLink a CenturyLink some our for got business partner situation. has That a do with a long time. to a has of that be say official will comment them, going no the time. and will lot of do We've their partner we from them. deployment, think to that I to will certify and They products on I process. for

George C. Notter

Okay, very good.

Brad D. Feller

are we where talked that the very anticipate XXXX to expect of that over just we It pause George, revenues timing so, different right? to question, to run-rate We of down we and temporary the about. the recovering, than we're grow exiting a And comes to and course rest year, your next – the at XXXX.

George C. Notter

Got it. (XX:XX:XX)

David F. Welch

we well in the mTera, pause, as But in Vibe, all the that, M&A being helpful be traditional carefully piece an is inserted is grow growth those is where new as year. that deals. products overall to compound quite may interesting, in creating nicely. that these continue we the as seen it's seen color monitoring key as have into network said, a of whole get you the the nice have the we're the Groove, And pause, portfolio, through situations the Tom to tend they're were Additional

over that then that healthy a a and industry quarter, a So kind fourth shows double-digit, impact result that begins as pause quarter growth a the quarter go through as we or to is or to muted two rate quarter a of rate nice this and XXXX of M&A quarter then strong. just of bit ramp see I as exiting at fourth

George C. Notter

Got it.

quick for then the you for give follow-up Cash a what us Thanks. one and sense Brad. Okay, costs? Can look just restructuring costs like here? restructuring

Brad D. Feller

Yeah.

announced $XX the million other when of we we combination about of costs talked terms in kind George, costs in restructuring So, million the $XX one-time severance, range. being retention, of deal, the to

George C. Notter

Great.

Thank Okay. you.

Brad D. Feller

Yes.

Operator

And go our from ahead. Nomura next Please with Kvaal Jeff comes question Instinet.

Jeffrey Thomas Kvaal

like loose question decent ask also in and handle about would Obviously, profit could structure the that year, fourth told and margin us I embedded us slightly was by what where be had on thinking thinking should to, quarter us the end that or in different gross we XXXX Brad, I kind Thanks. a outlook? least of you understand is a operating at have margin Yes. revenues, help the of OpEx hoping about start way. you've you to guess,

Brad D. Feller

Yeah.

going So, Jeff, you XX% the starting with should expect into year. we're

perspective, run-rate. drive a go we be little mid-XXs, bit I those side, go an the the approach As cost, up like looks think may kind you higher synergies we're with of that something on million $XXX exiting From starting to the OpEx cost drive start the mid-XXs fixed year.

today. the decline quite are something take You done, and lower continue down the over the significant a the first million to exiting expect $XXX should with step pretty bit in to integration get a then we that year of we course the year than as quarter the

Jeffrey Thomas Kvaal

there. be We to Okay. able should out from it sort

where (XX:XX:XX), part handle this to you stage? And XO, as customer wasn't are properties of then Coriant and in lingering Do is a you past. it looks issue what for not is deal on with a and at – has outlook better you the at Another those been have a the obviously the like Verizon big go-forward integration. this the that is that related

Thomas J. Fallon

Coriant on base relationship. both Yeah. through a was of Infinera does house. an sides relationship with (XX:XX:XX) that Infinera was has The installed substantive acquisition, the XO Verizon as the actually Verizon,

us another still think out, within to few to the footprint, continue have to throw As us relationship. nicely throw with I before, have we've I from, last not current would over growing they're and XO years, to they be to – to our stated that going footprint, to footprint. progressed We (XX:XX:XX) the expand that we going to relationship to than opportunities grow going to so We're has slower out continue us they're will allow went hoped. are

have very is going On a to that down, with good the Coriant The service new for migration continuing products to Verizon looking and side, there's of a opportunities a product opportunities core they're have relationship, now they is but perform. revenue around number and opportunity Coriant, significant them. at Infinera,

place So tactically both I would are a and with overall say we acquisition, with in our relationship Verizon, the strategically. better

Jeffrey Thomas Kvaal

Okay. Brad, Thank That's as helpful, well. you, Tom.

Brad D. Feller

Okay.

Operator

our MKM go from Partners. with ahead. And Genovese comes question Michael Please next

Michael E. Genovese

thinking Great. out of terms Thanks also by customers to trying this delay technology you're in forward. is technology caused internally much. revenue figure trying It your to out very roadmap, I'm versus of merchant figure seems home-grown like sort and what going

you're customers how (XX:XX:XX) talking ICE, about ICEX, products – new to ICEX with (XX:XX:XX) and emerging technology? If you're that generally the you of could versus seeing ICE how use talk thinking timing about you're generations what just of

David W. Heard

the I on question, going I'm I'm top to answer and going think. Yeah, Dave Mike, to understand I ask it. of answer to

today are value we are than any have Yeah. the more market because we actually long-haul vertically particularly because spectral edge to opportunities around differential deals continue ICEX we provide other DSP the Strategically, I'm a we efficient talk committed in subsea. opportunities. subsea proposition to strategically. First, performance, to win us DSP leading winning to going integrated for a are technology, continues and and for

with side, a always to technologies. our commercial strategy from appropriate explore I going think commercial we're complement opportunities to

ICEX. We used have DSPs the external for

with DSPs our Groove. strategy capability is strategy. DSPs capability of having a of We Clearly are external think don't both external external that for Coriant internal for using I orthogonal. part uses having XTM complemented

to continue advantageous and customers can our I think shareholders. Dave? use for we continue us most So going wherever our you'll we create both – are to the see solution

David F. Welch

to wins just into efficiency. and could late and is applications that XX at technology that baud as long-haul comments, gigabaud baud ICEX, integral of DSP PIC. or leadership significant We've We've XXX connectivity rate that that a XX the requires of for gigabaud ICEX What spectral demonstrated the has couple in higher the these for find better add indium a cetera. a you'll seen Yeah, et a subsea the gigabaud XT-XXXX, rates. generation clear ICEX technologies phosphide technologies generation an as lot subsea between number technologies gets the the of for its a higher perform demonstrated

a as the just to drives optics on favored. rates. just What i.e., open benefits platform per subsea, be higher strong baud the DSP purpose together. technology opportunity, technology whether choose short-reach we not why the gives that is it's on all it's so is a DSP And coming best. and technology platform, is metro, the what whether engine and serves the not it us what our dollar what the position or It's a That gigabit it's the DCI we're whatever capable the and to of, dependent DSP;

believe core that differentially. we long technologies base to continue However, their run, in do our application the expand

Michael E. Genovese

(XX:XX:XX)? ICEX, a as expect And we the on do follow-up, when just then timing

David F. Welch

of your know kind breaking hate to say but up I You is on it phone that.

the technology we talked as we'll traffic you're well of XX technologies see about If both and that using networks internal expose as do quarters. We've technology. today about our get over using Coriant asking as we (XX:XX:XX), live when expect demonstration future external in to gigabaud

Michael E. Genovese

taking Thanks. questions. Thanks for my

Operator

from Samik comes Please JPMorgan. go question Chatterjee Next ahead. with

Samik X. Chatterjee

question. Hey, guys. my Thanks for taking

kind to kind improvement that the when kind terms of to couple for (XX:XX:XX) to (XX:XX:XX) And guided next I thereafter, back wanted about the years about of gross that on you think base contemplated How access in in contemplated the go roughly had to Do than announced from XXX a gross of then lower deliver previously? XXX year one margin. basis improvement vertical of every revenue those to to a you points you targets need of me. margin should you Do Just acquisition, the ability how I and had than access need integration the certain those you I had targets? to to earlier? on a deliver initiatives? to to you should revenue your think lower

Brad D. Feller

Yeah.

integration about opportunity, vertically the just integrated if actually overall revenue which it profile. business will thing provides which a but scale is the you also the asset to technology a margin which It the So bigger drives think great take is our of into being cost overall, structure the for of products, time and lower a integration, leveraging get the really vertical the cost adjust benefits business, get those Coriant structure fab we both have.

XXXX space. expect be continue being to course we and to a then this the of to to able the perspective north of position term a margin best-in-class and get in term of an I back earlier As from in longer response, to the over mentioned get mid-XXs, expand opportunity longer margins

Thomas J. Fallon

overall up synergies the kind in to again, with get on having kind to, If you're keep and able billion, to for pause Yeah. kind of supply that moderated it's pace. that we've very of the XX% of we've to to year of versus comments of the with $X.X rational been had, mark this a great of view also referring quarters flow-through as a decline push-out XX% news Brad's $X.X chain early volume. with commitments The two good of again, partners billion next is exceed that

term, short integrating very overdriving benefit large Welch's the more XX% that, and in out accommodate vertical long it, commercial it's about In integration in to in get and cost volume the basis fixed the margin by more the it's gross future. synergies the leadership kind to to call term, taking platform very, comments, versus technology that So per industry really into XX% of Dave basis. the

Samik X. Chatterjee

Got it. Thank you.

Operator

Northland. question with And Please from go Tim Savageaux comes our next ahead.

Tim Savageaux

on, just period during and October deal Hi, X, of prior here. on to I what get trying sense locked better to you Sorry. and XX July was of like back reflect basically of on closed things surprised guess, a questions ownership, that announced sounds afternoon. it kind The up. good My sort

if of you percentage Your overlap, a comments revenue or focused at that's if limited that your kind what on product total legacy the big it a is the could three those but as (XX:XX:XX) not seems potential awfully the of to customers Coriant in and, I don't or Tom, characterize dyssynergy context customer small. know the ones sure. what on new of indicate pretty product maybe and that I'm amount growth be But would are area. of was, direct pretty seems

kind you was you if sort think to from So do that lack post-announcement of fairly a an – think or kind a and of ability pre-close, there that short standpoint, of in communicate happened timeframe. wonder what it you of I could characterize

Thomas J. Fallon

seeing interesting think because and And it continued are that we growth the with Yeah. Groove. is I traction

what (XX:XX:XX) of true is are Coriant the And seeing that continued with some side on Q put was significant, a perspective think The to in falloff We of of it equipment and pause. running and and was growth bookings to on QX. mTera. historic was it was it significant the perspective and outlook, from QX traction QX, of it people in the the perspective legacy was I both significant significant

actually I announced. amount think time there a close, We weeks, So it that there during time, this anything. think significant of that long (XX:XX:XX) speculation six lined do to true Coriant that And didn't things – part we about perspective a of put saying, timeframe my can't in Tim, probably but and was period the the impacted sale, out up has February I on March was timeframe. started I in bought (XX:XX:XX) about not think, from this people delay my for things was that and of Marlin materially. up. a pause been think in take that guess secretively, OAK acquisition – I also of is a getting

think I creating guy guy. have That when feel PE you wiping make concern PE started anybody a that doesn't comfortable. out another

little side. bit of us. some the some disclosure, uncertainty. pause, think pause in magnitude the that, on We've dyssynergy a but of that's that also And some I around So, Infinera surprised we there's expected same; full seen, the –

because deals by thought it the deals. still they to going close of we of but Some win I like because know. other in look timing comfortable that acquisition? don't I'm will – close QX, is in issues, regard to now QX. in that I think caused those Is would of that the we're pause mostly we

So the tell magnitude order ever the at than different the promised surprise scrutiny is asked forecast I seen. the biggest the of magnitude into I that was QX. – The you of now will in I the surprise? you pause a they've think boding

by getting week that the that's three small. and what when I account absolutely are product. We don't them account it. these of the overall think to by yet. – of what's customers by think scope of in decision overlap And it's a who's of things, And none pretty detail going by account made specific have buy I

Tim Savageaux

Right.

of are revised your run of shot combined get that real to end Just looking kind XXXX Wonder do on up could to take for you rate, Where billion, a then. $X.X quickly think a especially if at we rate forecast. at – combined we follow relative the run XXXX? up we estimate

Thomas J. Fallon

Yeah.

Brad D. Feller

for Oh, XXXX?

Unknown Speaker

– Fallon]: XXXX. For [XXXYXB-E Tom

Tim Savageaux

Yeah.

Brad D. Feller

Tim? For XXXX, or XXXX

Tim Savageaux

XXXX.

Thomas J. Fallon

exactly. For what the But to XXXX, be for actuals XXXX going ballpark?

Unknown Speaker

XXX (XX:XX:XX).

Brad D. Feller

It's billion. in both first than in that so the higher revenues given I the higher Coriant's of at the QX, part Yeah, part is of – run on the for I year QX as run look would the higher QX smaller if $X.X mean, imply year. it's you of mean, revenues the right, our in early both us, based as rate rate well

Thomas J. Fallon

$X.X of little current $X.X to run rate about year you if look a year. – at the is billion, think I billion, north

Tim Savageaux

Full year.

Thomas J. Fallon

we're that's reasons the Full of year. And one surprised.

officially like taken we've customers of it experienced. what completely versus If opportunities. people talked now the these people on to from the ever risks we've of hold. an when a that know And And with the – while it's And first puts a those anything and again. to opportunities. And that who of I we'll that you – recover is have hold at think losses. large are, we're somebody been we and some I Coriant are look on half, seeing new hold. of as said, we're Coriant on engage guess carrier some are side hold I they've history second off half hold, my these couple aren't atypical And put specifically had opportunity push-outs on out figure These is

hopefully So that opportunity opportunity. that we'll to of have I re-earn think the some lost

Unknown Speaker

and little and to portion, legacy on people products paper service as renewals, a the think to as it on they they're going and it wait on both and single it together right well. put to putting And sign pause together the that you nailed I services. Yeah, look what's whose as year bit multi-year of see new deal,

Thomas J. Fallon

think, (XX:XX:XX). that's do causing, application, customers specific with lot thing we some to go overlap one have term, applications, delay. another legal That's one don't we of adjacent we with Even of customers with lot a have of overlap MPA I though have and paper, set with same one a to

that down a takes administratively We're while through takes and it but a slows it things through. to just clean cleaning All of while.

Tim Savageaux

Got it. Thanks.

Operator

And our Suva next Please question with Citi. Jim go ahead. from comes

Jim Suva

these Thanks that can end literally And simple very how important, guidance is question being gave reason or orders is and This and you much. and on think sales revenue months delayed came a why ago, have very very comfort ask probably not in of low the we three but you is and you the that lost? are it. I assurety

So lack it we a just already the closed. on of seems like viability there's quarter

you're not customers lost they're or that how pauses do we about and orders? know talking that lost delays So

Thomas J. Fallon

Yeah, a concern. that's fair

being was and it edge. was a saying low of referencing We his at order. specifically script very you're one couple think on Brad's range our said of (XX:XX:XX) QX It revenue. a the I customer, end things in the we were there gave broad one the

our So based to and what's be with we try very upon. transparent guidance

risks have we and do, that that it. recover to range. you and very, that takes be we've we in as we were about right as we we we I all view that broader think of, at the puts the edge clearly very should taken will think every said, There's until – think QX my be guidance But I on what quite and as appreciate And taken an and on are frankly, We've and out. I that taken be would QX mind, I recover, would your toward would you what see what skepticism, but in it conservative. a why So a risk always had we candid range the cautious. I have acquisition; things

that what that be probably $X.X this over-saying those and our the We be would gave do. would by, next up, (XX:XX:XX) in we can range. and at billion QX we we We have gain point go said will nothing carefully deals to very touch view year

we that from We're to as to have customers. to show can go earn have and go as possibly we and tell going to our back we you. be We come what and see be you just candid you

Jim Suva

Great. my then question. And follow-up

of On pauses the on product about which we and the or this was more of customer how kind the due equally, delays side, were? delay side, or or quarter side those the Infinera outlook, integration or the it should think Coriant to

Thomas J. Fallon

side, distinctly bookings, was surprise bookings sides. significant I which came The we are more Yeah. revenue. from pause the The on bleeds were, on the like distinctly Coriant magnitude was an some. uptick. QX QX it both more. said, expected We But actually directly a into QX for

to probably to see And is QX will is on but call not said a industry in unusual. of levels of it we the QX, equal kind expected, historic we of what quite I which the magnitude beginning to bookings earlier, that As in our be recover.

can details. I about all that's So you some tell

Brad D. Feller

winning from and subsea, in multiple we've day it's large opportunities multiple won the things, I mean, opportunities I markets, side across in think continue of every and more understand, the we're in Yeah, opportunities winning right, Infinera in to important we multiple more long-haul. metro, win

win to are deployments. continue new deals, large, some We very of complex and those deals very

delay a the having not bit an first so year is into of little situation. uncommon next those And in half of

are those for If time, company. have you going impact big, to over at important those combined look are the customers the

Thomas J. Fallon

that I particular would in right verbally count about. pipeline month, for while. a now been do mean, I a in opportunities, we are I've I up. excited that I'm paper, see deals them. subsea, we've few a more have more say long-haul of new written But That the in quite last than is we And it's awarded fair. don't seen Until

Jim Suva

Thank you...

Brad D. Feller

Yeah.

The other... (XX:XX:XX)

Brad D. Feller

year-end budget like? I'll that's have on give of look QX the with of flush customers their incremental piece thing for come that Yeah, looking money in the there's oftentimes what color or whether some is into at who We to quarter. Hard what the we're the last oftentimes money. it'll QX What's there? forward look hard traditionally in none say factored if fourth quarter, come you the but not, happens with is at

we with, have Given the that into going outlook. that none factored QX of we're conservatism forward the

Jim Suva

Thank the details. appreciated. much That's for greatly you so

Brad D. Feller

(XX:XX:XX) Okay.

Thomas J. Fallon

With up in Infinera's you to your day. time, that, I'd date I forward thank period look exciting and keeping to you Have on history. like all of a to great this for

Operator

today's now presentation. The for conference has attending Thank you concluded.

You now may disconnect.

Infinera (INFN) 6 Nov 182018 Q3 Earnings call transcript