jefferies 2013 global technology, media & telecom · pdf file1| infinera confidential...

1 | Infinera Confidential & Proprietary

Jefferies 2013 Global

Technology, Media &

Telecom Conference

Ita Brennan, Chief Financial Officer

May 7, 2013


This presentation contains "forward-looking" statements that involve risks, uncertainties and

assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect,

our results may differ materially from those expressed or implied by such forward-looking

statements. All statements other than statements of historical fact could be deemed forward-

looking, including, but not limited to, any projections of financial information; any statements

about historical results that may suggest trends for our business; any statements of the plans,

strategies, and objectives of management for future operations; any statements of expectation

or belief regarding future events, potential markets or market size, technology developments,

or enforceability of our intellectual property rights; 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. Actual results could differ

materially from our current expectations as a result of many factors, including but not limited

to: aggressive business tactics by our competitors, our reliance on single-source suppliers, our

ability to protect our intellectual property, claims by others that we infringe their intellectual

property, and our ability to respond to rapid technological changes, and other risks that may

impact our business are set forth in our annual reports on Form 10-K filed with the Securities

and Exchange Commission, as well as subsequent reports filed with or furnished to the

SEC. These reports are available on our website at www.infinera.com and the SEC’s website at

www.sec.gov. We assume no obligation to, and do not currently intend to, update any such

forward-looking statements.

Safe Harbor


Infinera (INFN) At-A-Glance

� Industry Leader• Optical Transport Market Leader

• Vertically Integrated Technology Innovator

• Strong DTN-X Product Traction

• Highly Leverageable Business Model

• Solid Balance Sheet


What Does Infinera Build and Sell?

Digital

Switching

Intelligent

Software

Photonic Integrated Circuits

+ FlexCoherent Processor

Vertically

Integrated

Vertical Integration – Own Key Technologies

Build Systems

Intelligent Transport Network Systems

DTN-XDTNATN

Components enable unique

competitive advantage


Intelligent

Transport

Leading Architectural & Industry Transformation

ScaleMassive

Scale

Converged

Layers

SDN Multi-layer

Network Automation

Integrated

DWDM/OTN/MPLS

1T Super-channels

Automate Transport

w/GMPLS Intelligence

Integrated

DWDM/OTN

500G Super-channels

Competitors

Static / Manual

P2P Pipes

DWDM10G

40G

100G


100G Market Underway

10G Revenues

$6.0

$5.0

$4.0

$3.0

$2.0

$1.0

$0.0

2010 2011 2012 2013 2014 2015 2016 2017

Source: OVUM Fall 2012 “Line Card” Forecast

WD

M L

ine

Ca

rd R

eve

nu

e (

$U

SD b

illi

on

s)

40G Revenues

DTN-X Ships

100G Revenues


Optical Market – What is the Opportunity ?

Source: Dell’Oro O25A-Optical Forecast Tables Jan13

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mil

lio

ns

WDM Metro

WDM LH Terr

Optical Switch

Multiservice Multiplexer

9% CAGR

8% CAGR

12% CAGR

-6% CAGR

$7M

$6M

$3M

$1M


Infinera is WinningDTN-X #1 in 100G LH Port Share Since Market Entry

Source: Dell’Oro 4Q12 Optical Network HW

2,005

1,783

824659

280103

• #1 share since shipping

• In 2 quarters achieved 26%

of all 100G Ports ever sold


DTN-X Traction as of Q1 201327 Customer Commitments in only 3 Quarters

13 in NA 11 in EMEA 3 in APAC

New Existing

9 18

SLTE Metro Core

7 3

Long Haul

17


Actual Target

% of Total Revenue Q1'13 Q2'13-Lo Q2'13-Hi 2013-Lo 2013-Hi

Business

Model

Revenue ($M) $125 $130 $140 $480 $525 100%

Gross Margin 36% 37% 39% 38% 40% 45%

Operating Expense 42% 41% 39% 42% 40% 35%

Research & Development 22%

Sales & Marketing 13%

General & Administration 7%

Operating Income (Loss) -6% -4% 0% -4% 0% 10%

Depreciation & Amortization 5% 5% 5% 5% 5% 5%

Capital Expenditures 4% 4% 4% 5% 5% 5%

Guidance Guidance

Business Model - Proof Points

Mid-term

Business

Model


Summary

� Industry Leader• Technology leader in Intelligent Transport Networks

• Vertically integrated, highly leverageable biz model

• $4B addressable market growing to $11B in 2015+

• 115 customers in 60 countries

• DTN-X 27 customers in 3 quarters of shipping

• # 1 port market share in 100G Long Haul Transport


Thank youwww.infinera.com

jefferies 2013 global technology, media & telecom · pdf file1| infinera confidential...

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