conference joining thank our us and second quarter you call. XXXX on Good for afternoon,
and an how quickly CFO, opportunity see COO, Joining then by we of created the will I detailed the and of outlook who results Brad reviewing remainder I'll the summarize provide call for over will Feller; the After and turn review me QX roadmap. evolving our market innovation describe more a QX financial today, and performance, our Heard. QX our the David year. to Brad, our
several Coriant toward Infinera, past months, fall acquired optical and envisioned we in the Over made the tremendous XXXX. networking the building innovator at when of new we've as scale progress
approached of are strong pillars progress this anniversary our the we As one-year we that the witnessing foundational thesis the acquisition, around support strategy. of
and industry. with improvements this the optical a largest be our of in we a First, are technology, order and mandatory ingredient significant consumers scale, enhancing to pipeline leader
our non-GAAP the the over Second, acquisition. fourth of the our support profitability period, of returning as of to cash integration near to flow and execution closure from our we quarter expectations end in one-year just continues solid of course
fourth We are finish on of this work in quarter substantially our integration track to the year.
positioned next integration has finally, And through which has us differentiating in generation investment our this spending. remained optical well period, for of the robust innovation,
that new Before we to running update. notable several as recent it's great addition execution significant Erba events a operations to elaborating our and Nancy that key announced hired industry brings integration efficiency these team. further on large-scale an demand Welcome week, mention we pillars, Last CFO. aboard in I in experience Nancy. provide Nancy the want and
capital as gives we've us to million scale been in Tier of this Fargo appropriate the believe on flexibility the facility X source We've market. Wells We to loan we additional plan. cost on provide an relationships needed business effective asset-backed closed with our liquidity the $XXX working developing execute
their with transitioned costs Fabrinet are successfully have manufacturing in from ramping from drive production center. facility our We Berlin These steps manufacturing fixed low-cost our out variable and slowly significant business.
year. as we margins gross the on impact positive a have will We exit
version and with final us down to efficiently completed of one the salesforce, is expenses in and a SAP, one time Infinera continue front, have systems the we implementation unified new of allow one bring will agile. scope. on These systems more now unified business. IT and a third now run scaled to On and version instance project of significantly
With reduction that non-GAAP excess $XXX million excess in OpEx deliver many and non-GAAP cost now and OpEx savings of savings in activities steps we COGS in $XXX of implemented have will and these an in others, combined XXXX. million
importantly, the next-generation us critical DSP, taped front, And in required on we the ICEX innovation out performance. for lead deliverable optical a our to
to there's exceed we be quarter non-GAAP the market significant on integration opportunities. laid capitalizing progress accomplishments outlined on when profitability we as remains done, to our work closed the transaction. foundation achieving While and more These fully track future fourth milestones a for continue
Moving results. onto financial our QX
the with non-GAAP operating range million. and of We $XXX expenses upper margins XX% of revenue non-GAAP guidance are towards $XXX non-GAAP approximately end million, at of gross our
healthy top initial from from other successful relationships. of new ramp demand ICP our our and benefited customer, Revenue customer global X demand so from Tier solid
of had bookings bookings, our earnings anticipated We our months quarter-on-quarter. in strong ICP XX% customer. greater QX was growth As from strengths and Tier bookings quarter during the from a saw grew we which Xs call significant highlight three new ago, particular Subsea strength globally, than the for
the pipeline In customer half that continued a of new customers from American North than of the significantly were second it's came top fact our expanded our for to two year. Company. and weakness The the more cable offset five quarter bookings in the strength from created
of our We've from line XX% success in significant a expectations shipments in XX% to non-GAAP quarter. QX entering down and expansion our adding pushed In portion to our with new QX, footprint customers, were margin the due opportunities. part
this as opportunity over fill the about footprint new investment. creates higher We through periodically great expansion with history. our split that opportunities One, we've earn margin experienced This a dynamic new transponder to equally was customers time, between a view and customers. current footprint
a trends. trends, on number capitalize increasingly of consecutive prudent third and visibility. quarter healthy guidance, believe our longer-term Following All near and industry demand growth, we our and of market in macro positioned bookings, positive our and order and we backlog confident well momentum, we are see we're the to
to These suppliers open differentiation. include and trusted and the the the disaggregated architectures network continued of cloud roadmap technology robust have selection a continued and shift that migration to for
customer model a this in be growing to years. predicted momentum which in number One multibillion growth next important is segment, is of disaggregated significant is to dollar architectural of networks. a a trend the market few to This network reflected over continue
in to cornerstone mentioned is shipping not this as platform XX% up meaningfully that XX% Groove opportunity in new also was platform the but of Our QX. grew Tier opened bookings contributing only previously it began This trend quarter-on-quarter at and the the X Asia year-over-year. ICP,
the beyond allowing services them have edge. this in proprietary will devices faster enclosed breaking Not disaggregation the advantage to moving The the promise IP chokehold, the interest bring of real by at is optical in deploy this market. with only or is reduction CapEx, customer also significant had domain the customers
our from application and half completed the has software with built it's first year. lab Our in the leading to and hardware carrier-class stacks second of DRX now office customer IP trials related Tier field-proven successfully this X
While significant still we of Xs this of largest this for see pipeline by trials and solution DAA world. validated opportunity with market developing, is some and around a operators the is in XG the networks the cable Tier
larger revolutionary opportunities certain It ideal believe is cases, our also that customers uncomfortable the these up on some of new are this suppliers, over-reliance bringing for is use their to market. becoming with architecture opening both for we the timing clear In Infinera.
overexposure. solution. to continuity pressure or security, reasons supply, One customers of and current global their These customer of politics, general evaluating the network are alternatives of
While networks, their interest generally see telcos by do alternatives. we we a them will expand believe other with don't decommission vendor working to growing networks
we with and Tier anticipate more During replacement opportunities QX X in these Huawei for Asia time. the deal example, we’re a awarded arising over our of first of course
more becoming vendor differentiation technology And finally, selection. important ICE significantly in
participate the their technology customers their own competitive in tied and closely Our underlying delivery is enables markets services. of highly and competitiveness to
deliver to will shift customer in see primarily from what what a generations. we we we As evaluating of new able the available technology buying be is over the reliably invited couple opportunities, criteria next today to evaluating to are
this uniquely leadership XXX today. costs we positioned In in solutions and providing and gig market both the performance with our regard, ICEX are
schedule two for have suppliers the gig Today, XXX one Our delivering XXX XXXX that board. remain on committed ICEX next Gig of ICEX in we only the on drawing year. and over
optical by the to the continues optical of provider Coriant. As our chain market as supply enhanced integration in consolidate, to successful position technology continues our be differentiated a
note, never that cost about efficiencies. just integration our capturing been plan On has
maintained behind us. R&D risk I significant leadership earlier, productization. even We optical our but we've As performance the our can integration most noted resources focus more development and with and now technology on
and we communicated our optical we is optical As and with our have Groove during automation platforms, platform. solution gig XXX our solutions. introduced Technology disaggregated in webcasts, IP distinct In Roadmap focus that our network three optical delivers leadership, leadership, recently July categories; XX
five Today, as and trials we extending trials is In second completed additional win us This with a the half. Groove year, the Roadmap customer criteria. for those customer of have of first one Technology successfully wins scheduled a decision half PL. the new XX verbally our was awarded for and had critical XX customers also a them
wins number lower Groove initial these with part roadmap XXXX the XXXX. A on XXX increase deployments speed expect of a gig significant have initial XXX offering with in of XXX and in second half Based been revenue the Even gig technology. our gig of of based other both wins volume are on if significant solutions. first we
of heart of engines. developing and vertical integration manufacturing is strategy the our our At optical portfolio
deliver a the mandatory vertical ingredient to and technology to economically advance, cost continue that control As fundamentally and integration the structure wavelength speeds makes that to attractive. we it the ability becomes believe
integrated industry We XX of years our continuing inception as ago. vertically consolidation strategy endorsement a the nearly at view recent installed
integration milestone gig half track on DSP, us silicon in achieved We second ICEX an and a putting the of fall important delivery have tape for product our out XXXX. recently of vertical first with XXX this
lower of As opening our market better gig XXX a gig a efficiency rates gig, per ICEX roadmap spectral opportunity. – not transmission and will but deliver XXX at through communicated range only webcast bit, up recent from during XXX cost tremendous
technology network be to customers use reach their costs interconnect to will and application able the short transoceanic from spanning same improving simplifying for center operating their architectures. links, data Our
two published in of into the solutions one market near-term. XXX with gig vendors come only remains Our the
device. one differentiation. of of the only a promising the integration in DSP terabytes in single optics the are of We Infinera corresponding core level in X.X This is capacity
Well, our capacity heritage has been focused high optical on integration.
the property. aggregation we intend to new for architecture lay to of toolbox market in unique with a intellectual September, pluggable ECOC bring to to our optical out strategy. continue IP this a using We At our plans expand
In summary, pipeline in business. momentum, and has of customer wins improvement the our driven improved combination confidence momentum order and significant
in our We billion expect and in positive QX XXXX of expectation our backlog of X.X cash flow reiterating QX. revenue target turning grow the are to and
the now the the finalization is of benefits Coriant acquisition with Infinera. materializing of integration new insights from The on and
enhanced customer with have driving opportunities. engagements We lager customer
and scale. are success driving demonstrating We
our completing work to create profitability you'll positive in to be close position flow. are cash company We integration a and
for the networks the positive market value. the bringing vision and invest I to share And creating shareholder hard their our most continued future, innovation thank customers to creating optical like importantly, create business. customer for in we thank have want of tomorrow. work that and are our the to I'd should also to employees our who momentum our and
hand like Brad call review Now of the to to I'd financials. more a over the for thorough
