Infinera

Transcription

Infinera

Winning Through Disruption in the
Transport Market
Investor Overview
February 2016
1 | © 2016 Infinera
Safe Harbor
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
statements about future market performance and similar statements; 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 and product 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. These risks and uncertainties include, but are not limited to, the risk that Transmode’s and Infinera’s businesses will not be
integrated successfully; the risk that synergies will not be realized or realized to the extent anticipated; the risk that the combined company will
not realize on its financing or operating strategies; the risks of competitive responses and shifts in the market; delays in the release of new
products or updates to existing products; fluctuations in customer demand, changes in industry trends, and changes in the macro economic
market; the effect that changes in product pricing or mix, and/or increases in component costs could have on our gross margin; our ability to
respond to rapid technological changes; our reliance on single-source suppliers; aggressive business tactics by our competitors; our ability to
protect our intellectual property; claims by others that we infringe their intellectual property; war, terrorism, public health issues, natural
disasters and other circumstances that could disrupt supply, delivery or demand of products; and other risks and uncertainties detailed in our SEC
filings from time to time. More information on potential factors that may impact our business are set forth in its Quarterly Report on Form 10-Q
for the quarter ended on September 26, 2015 as filed with the SEC on November 5, 2015, as well as subsequent reports filed with or furnished to
the SEC from time to time. Our SEC filings are available on our website at www.infinera.com and the SEC’s website at www.sec.gov. Forwardlooking statements are subject to change, and we may not inform you when changes occur. We assume no obligation to, and do not currently
intend to, update any such forward-looking statements.
Infinera: A Differentiated Technology Company
 Redefining what the network will be




•
Unique technology innovation with PIC
•
Best-in class systems with Automation,
Convergence and Scalability
Photonic Integrated Circuit
(PIC)
TM-Series
Industry leading global service & support
Unmatched reliability
Right tools for right job
Focused on customer success
Cloud
Xpress
DTN
DTN-X
XT
Enabling An Infinite Pool of Intelligent Bandwidth
DTN-X
XTC
Infinera – A Global Business
 Leader in Intelligent Transport Network™ solutions
 Growth over last 3 years: Revenue up greater than 20% YoY, more than double DWDM market growth*
 Diversified customer base across multiple verticals
- Several Tier 1s globally
- 3 of top 4 Internet Content Providers
- Several major global Cable/MSOs
- Multiple top Wholesale and Enterprise Carriers
*IHS overall DWDM growth: 2013 = 11%; 2014 = 6%; 2015 = 7%
Infinera Differentiators
Infinera differentiates due to its technology,
market expansion opportunities and vertically
integrated business model
Cloud Xpress
XT-500
XTC-2
TM-Series
Infinera PIC Fab
PIC-enabled Technology
• PIC enables scalable, intelligent
functions: SDN, integrated
switching, sliceable bandwidth
• High capacity applications: LongHaul, Metro Cloud, Metro Core
New Purpose-Built Products
• Cloud Xpress for DC Interconnect
• Transmode Metro portfolio
• Infinera Metro Aggregation
• ~3x TAM expansion to >$15B in 2019*
* Based on average of latest forecasts from Ovum, IHS, Dell’Oro and ACG
Vertical Integration
• Lower cost structure
than competition
• Supply chain control
Outpacing Other SP Networking Players
140%
120%
Revenue Growth:
Trailing 12-month revenue
114%
Cloud Xpress
for 100G DCI
100%
80%
60%
DTN-X for
100G Long-Haul
INFN
CIEN
JNPR
37%
40%
CSCO
ADV
20%
ALU
0%
-20%
3x Revenue
Growth
Jun '12
Dec '12
Jun '13
Dec '13
Jun '14
Dec '14
Jun '15
* Based on latest financials available; Adva and ALU assumed flat for Dec 15 as results not yet available
Dec '15
Disruptive Technology Innovation:
The Infinera Way
Uniquely Delivers Massive Optical Bandwidth with PICs
Competition
Moore’s Law-like
for Optical
•
•
500G “WDM on a chip”
Integrates over 600 optical functions
500G PIC
3rd Party Discrete Optics
Industry’s only 500G large scale Photonic Integrated Circuit
PIC Leveraged for Disruptive Systems
Own Key Technologies & Processes
500+ patents filed/granted
Intelligent Transport Network
Scalability, Convergence, Automation
Photonic Integrated Circuits
500G Super-Channels
Purpose-Built Systems
Intelligent
Software
Vertically
Integrated
Switching
ASICs
Cloud Xpress XTC-10/4 XTC-2/2E
DTN-X
XT
DTN
Market Expansion Strategy
Transport becoming is Strategic
• Networks Simplifying to New
Model of Cloud Services and
Intelligent Transport
• Scalable Optics and Integrated
Packet-Optical Key for
Simplification
Market Inflections
100G
100G
Long Haul Metro Cloud
Accelerated 100G
uptake & 40G decline
2012
1st to market
with purposebuilt solution
2014
100G Metro
Aggregation
Infinera Core +
Transmode
portfolio
2016
Poised to take off
Vision: Enable An Infinite Pool of Intelligent Bandwidth
Data Center Interconnect
Capturing emerging cloud infrastructures
Cloud Architecture Drives New Traffic Patterns
1KB
HTTP
930x
Network
Home User
DCI
Distributed Compute Model
Server-to-Server traffic growing faster than Server-to-User traffic
Source: Facebook
Cloud Xpress – Optimized for DCI
Cloud Xpress Platform
•
•
•
•
Hyper-Scale Density
• 2RU, smaller than most servers
• 3X to 10X density improvement
Minimal Power
500Gb/s input and output in 2 RU
500G PIC based super-channel line side
500G client w/mix of 10/40/100 GbE
Instant Bandwidth™
• ~100W per 100G: ALL INCLUSIVE
• 50% better than industry leaders
Simple Operation
• Simple 1-2-3 step provisioning
• Server-like operational experience
The Metro Market
A new market for Infinera as technology upgrades
TM Portfolio Ready for 100G Coherent Metro Ramp
400
350
100G starting
to ramp, rapid
acceleration
Ports (Thousands)
300
350
68 %
200
CAGR
150
100
50
CY12
CY13
0
CY14
CY15
CY16
CY17
Source: 2015 IHS 100G Coherent Optical Equip Ports Mkt Fcst
CY18
CY19
Transmode’s Leadership in Metro
Lowest
Power
& Space
xDSL
Triple Play
CATV/MSO
Triple Play
FTTx/PON
Triple Play
Metro
Access
Metro
Access
Storage
Networks
Rich Eth.
Biz Service
Mobile Back/
Fronthaul
Metro
Edge &
Core
Network
50000+
Systems
650+
Customers
#1
Packet
Optical
EMEA
TM-Series
10G/100G Packet-Optical
Ethernet, Wireless backhaul / fronthaul
TG-Series
Biz. Service
Wireless backhaul
CPE / PON
Biz. Service
Wireless backhaul
WDM access
Metro Networks Are Application-Oriented
Long-Haul
DTN-X
Family
Cable MSO Evolution
Business Ethernet
IP
Metro Core/
Regional
Mobile Evolution
IP
Metro/Micro DC
Metro Access/
Aggregation
TM-Series
100G and Packet-Optical in Metro
XTC-2 Extends DTN-X to Lower Capacity Sites
E.g. Right-sized DTN-X XTC for Smaller Cities
Seattle
Spokane
100G
XTC-10
Boise
XTC-2
100G
100G
100G 100G
Salt Lake City
XTC-4
500G Super-channels
Common Hardware, E2E Network Management & Automation
Las Vegas
Long Haul
Adding new tools to solve customer needs
Introducing the DTN-X XT Series
DTN-X XT-500
Scalable
Super-channel; ILS integration
Efficient
~1W/Gig, 1Tb/s IO 2RU
Programmable
Instant Bandwidth, SDN enabled
Long-Haul Interconnect
Optically Switched (ROADM)
End-to-End Solutions
The Infinera Unified End-to-End Portfolio
SDN and INFINERA NMS
METRO
ACCESS
Triple Play
Broadband
AGGREGATION
LONG HAUL / SUBSEA
CORE
TM-Series
Cable
Broadband
DC INTERCONNECT
DTN-X
Family
Cloud
Xpress
NID
Business
Ethernet
EDU
Mobile Front/
Backhaul
TM-102
TM-301
TM-3000
XTC-2
XTC-2E
XTC-4
XTC-10
FlexILS
TG-Series
MTC-9
$15B* (2019) – Transport Market
XT-500
TMSeries
Value of End-to-End
Packet-Optical Switching
Access & Aggregation
Converged Packet Aggregation
Triple&
Play
OTN Switched Metro Core
Converged Packet Aggregation &
Pan-European Network
500G
Pan-European
Network
OTN Switched Metro Core
Super-channels
500G
Super-channels
Broadband
XTC-2
Cable
Broadband
XTC-2
Business
Ethernet
XTC-10
Frankfurt Metro Area, Germany
Frankfurt Metro Area, Germany
Mobile Front/
Backhaul
XTC-10
Large
LH Core
100G
100G
TM-Series
XTC-10
XTC-10
Large
LH Core
Point-to-Point
XT-500
Interconnect
XTC-4
Point-to-Point
Interconnect
DTN-X Family
XTC-4
Infinera DNA
XT-500
Optical Market exceeds $15 billion by 2019
$18,000
Long Haul*
Metro*
Incremental DCI**
$16,000
$14,000
$12,000
$10,000
$8,000
$2,353
CAGR 43.7%
$7,885
$8,253
CAGR 7.5%
CAGR 5.4%
$1,705
$1,209
$828
$552
$5,858
$6,583
$7,192
$6,000
$4,000
$2,000
$4,855
$5,195
$5,513
$5,814
$6,020
CY15
CY16
CY17
CY18
CY19
$0
* Long Haul and Metro forecasts based on average of latest forecasts from Ovum, IHS, Dell’Oro and ACG
** We estimate 50% of DCI market to be incremental to Long Haul and Metro DWDM; underlying market estimate
from ACG WW Optical Forecast, December 2015
Infinera’s Ascending Global Market Position
Global Metro + LH WDM (2014)
$2,500.0
Cross-selling and revenue synergies
create opportunity to go higher
$1,500.0
$1,000.0
$500.0
Source: Dell’Oro Optical Report Jan 2015
OTHERS
MRV
BTI
ECI TELECOM
ERICSSON
TRANSMODE
NEC
ADVA
CISCO
INFINERA
CORIANT
INFN + TRMO
FUJITSU
ALCATEL-LUCENT
ZTE
CIENA
$0.0
HUAWEI
Revenues ($M)
$2,000.0
Differentiated Financial Results
Infinera – A Growth Story
Revenue (in $m)
$888
3 years of >20%
revenue growth
Solid Balance Sheet
$668
$544
47.8%
$438
44.0%
41.6%
GM%:
13.1%
8.3%
37.9%
1.4%
OM%:
-9.4%
FY12
FY13
FY14
FY15
All figures are Non-GAAP (reconciliation to GAAP numbers may be found at www.Infinera.com)
Industry leading revenue growth and
profitability
 $207M net cash (end FY15)
 FY15: Positive Cash Flow from Ops every quarter
 Cash Flow from Ops = $133 million
 Free Cash Flow/Revenue = 10.3%
Q4 ‘15 Performance
 $261 million revenue
 48.3% gross margin
 $112 million net income
Q1 ’16 Guidance




$240 - $250 million revenue
47.5% - 49.5% gross margin
10% - 12% operating margin
$0.15 - $0.19 EPS
Purpose-Built Products: Good for Customers & Infinera
Innovating to address
entire $15B* opportunity
New XT-Series:
High Capacity LH Data
Center Interconnect
New XTC-2/2E:
Packet-OTN Switching
for Regional / Metro Core
TM-Series:
Packet-Optical for Metro
Core, Aggregation, Access
Margin Growth Opportunity
Margin Drivers
 Vertical integration
 Footprint vs fill
 Instant bandwidth
$
$
$ $
Long-Haul
$$$$
Cloud
Xpress
Metro
 Purpose-Built Products
Infinera PIC Fab
Expanding Markets Drive Margin Growth
$
$
$
$
Great Time To Be In Optical For Infinera
End-to-end
packet-optical
portfolio
Consolidating
market
TAM > $15B*
Vertical IP
ownership
Thank You
www.infinera.com

Infinera

Transcription

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