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Share Name | Share Symbol | Market | Type |
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Infinera Corporation | NASDAQ:INFN | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.03 | 0.56% | 5.34 | 5.34 | 5.35 | 5.43 | 5.24 | 5.34 | 1,064,133 | 16:45:41 |
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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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77-0560433
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(State or other jurisdiction of
incorporation or organization)
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(IRS Employer
Identification No.)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, $0.001 Par Value
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The Nasdaq Global Select Market
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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(Do not check if a smaller reporting company)
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Smaller reporting company
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Emerging growth company
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Page
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growth of cloud services;
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growth of bandwidth-intensive services like streaming high-definition video services;
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increasing use of connected virtual and augmented reality devices;
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proliferation of mobile services of Wi-Fi, 4G and future growth of 5G; and
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rise of the Internet of Things (IoT), driving massive growth in the number of network-connected devices.
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high-bandwidth solutions that scale optical transmission bandwidth to meet increasing demand while providing wide-ranging granularity for service efficiency;
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efficient solutions with the right mix of disaggregated and integrated systems that optimize performance and increase reliability while reducing physical space and power consumption, leading to lower operational expenses;
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easy-to-use solutions that are highly programmable and open, which help reduce the time and complexity of deploying new transmission bandwidth;
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improved integration between packet or Internet Protocol equipment such as routers and optical transport networking equipment; and
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strong encryption at the transport layer processed using hardware at line-rate speeds.
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Expanding business with existing customers and winning new customers.
We have recently introduced multiple new products and expect to release additional products in 2018, which we believe will enable us to address a broader portion of the optical market, expand business with current customers and win new customers.
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Accelerating the cadence at which new products are brought to market.
Historically, we have brought to market new generations of our optical engine, which includes PICs and DSPs, approximately every five years. In response to the pace of architectural transitions and customer demand, we have accelerated our planned cadence of delivering new generations of ICE-based products in order to take full advantage of rapid growth in bandwidth requirements and market shifts. We intend to continually invest in key
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Aligning customer success with our success.
When our customers are successful we are as well. For example, our Instant Bandwidth solution enables customers to activate additional bandwidth when needed. Additionally, our global customer services team is committed to making our customers successful by providing the highest quality support services to deploy, operate and maintain their networks. We believe providing the most reliable products and differentiated customer experiences contribute to customer success and are major differentiators.
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Driving cost structure optimization.
In delivering innovative solutions to our customers, we are committed to cost structure efficiencies that enhance our ability to invest in research and development and drive profitability. In particular, we believe our vertically integrated manufacturing capabilities serve as a competitive advantage from a technology and supply chain perspective, and financially, enable a lower cost structure and thus, higher profitability.
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Utilizing automation to deliver differentiated solutions.
We believe we lead the industry in ease of use and automation, facilitated by our software capabilities. We continue to invest in our differentiated technologies, including enhancing capabilities of our Instant Bandwidth offerings. We are extending the management and control capabilities across our entire product portfolio with the Xceed Software Suite, which enables customers to efficiently utilize network resources. Additionally, based on customers’ desire for more programmable networks, we have added open application programming interfaces (“APIs”) to our solutions to enable our customers to be more agile and automate operations.
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Tier-1 carriers for domestic and international networks;
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Tier-2 and Tier-3 carriers;
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ICP and data center operators;
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multiple system operators/cable providers;
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wholesale and enterprise carriers;
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submarine network operators;
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enterprise customers; and
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research and education/government entities.
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Scalable.
The proliferation of data centers, rise of cloud computing, increasing consumption of video and growth in mobile access is fundamentally changing traffic characteristics in operator networks. We currently deliver terabit class coherent, sliceable super-channels, which allow a massive pool of bandwidth to be provisioned in a single operation. Sliceable photonics enable network operators to benefit from high capacity super-channels and also achieve wavelength granularity for wide-ranging control of the network.
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Flexible.
We offer a mix of integrated and disaggregated platforms to reduce complexity and enable flexibility as network architectures evolve. There are varying customer preferences as some service providers continue to favor integrated multi-service mesh networks while traffic driven by ICPs is increasingly serviced by disaggregated platforms that address point-to-point connections.
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Open.
Network operators are facing intensifying competition to meet customer demand for immediate bandwidth and better visibility into the network. Our Intelligent Transport Networks feature highly programmable platforms with SDN APIs enabling networks to be open; this helps simplify end to end multi-layer provisioning. Additionally, there is growing demand from certain customers for line systems that are open, which entails having the ability to use transponders from one vendor over a different vendor’s line system. We are addressing this dynamic, both by seeking opportunities to sell our transponders over other vendors’ line systems and also offering our own open platform that supports both fixed and flexible grid technology, thus allowing a seamless mix of transponders from multiple vendors.
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price and other commercial terms;
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functionality;
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existing business and customer relationships;
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the ability of products and services to meet customers’ immediate and future network requirements;
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power consumption;
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heat dissipation;
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form factor or density;
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installation and operational simplicity;
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service and support;
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security and encryption requirements;
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scalability and investment protection; and
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product lead times.
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fluctuations in demand, sales cycles and prices for products and services, including discounts given in response to competitive pricing pressures, as well as the timing of purchases by our key customers;
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changes in customers’ budgets for optical transport network equipment purchases and changes or variability in their purchasing cycles;
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fluctuations in our customer, product or geographic mix, including the impact of new customer deployments, which typically carry lower gross margins, and customer consolidation, which may affect our ability to grow revenue;
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the timing and acceptance of our new product releases and our competitors' new product releases;
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how quickly, or whether, the markets in which we operate adopt our solutions;
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our ability to successfully restructure our operations within our anticipated timeframe and realize our anticipated savings;
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order cancellations, reductions or delays in delivery schedules by our customers;
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our ability to control costs, including our operating expenses and the costs and availability of components we purchase for our products;
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our ability to increase volumes and yields on products manufactured in our internal manufacturing facilities;
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any significant changes in the competitive dynamics of the markets we serve, including any new entrants, new technologies, or customer or competitor consolidation;
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readiness of customer sites for installation of our products as well as the availability of third party suppliers to provide contract engineering and installation services for us;
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the timing of recognizing revenue in any given quarter, including the impact of revenue recognition standards and any future changes in U.S. generally accepted accounting principles (“U.S. GAAP”) or new interpretations of existing accounting rules;
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the impact of a significant natural disaster, such as an earthquake, severe weather, or tsunami or other flooding, as well as interruptions or shortages in the supply of utilities such as water and
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general economic conditions in domestic and international markets.
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completion of product development, including the development and completion of our next-generation optical engines, and the completion of associated module development;
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the qualification and multiple sourcing of critical components;
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validation of manufacturing methods and processes;
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extensive quality assurance and reliability testing and staffing of testing infrastructure;
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validation of software; and
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establishment of systems integration and systems test validation requirements.
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the mix of the types of customers purchasing our products as well as the product mix;
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the timing of deploying solutions powered by our next generation technologies, which generate lower margin initially, as per unit production costs for initial units tend to be higher and experience more variability in production yields;
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the pace at which we deploy solutions powered by our next generation technologies, which could lead to higher excess or obsolete inventory;
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significant new deployments to existing and new customers, often with a higher portion of lower margin common equipment as we deploy network footprint;
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changes in our manufacturing costs, including fluctuations in yields and production volumes;
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pricing and commercial terms designed to secure long-term customer relationships, as well as commercial deals to transition certain customers to our new products;
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the volume of Infinera Instant Bandwidth-enabled solutions sold, and capacity licenses activated;
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price discounts negotiated by our customers;
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charges for excess or obsolete inventory;
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changes in the price or availability of components for our products; and
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changes in warranty related costs.
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aggressively pricing their optical transport products and other portfolio products, including offering significant one-time discounts and guaranteed future price decreases;
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offering optical products at a substantial discount or for free when bundled together with broader technology purchases, such as router or wireless equipment purchases;
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providing financing, marketing and advertising assistance to customers; and
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influencing customer requirements to emphasize different product capabilities, which better suit their products.
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price and other commercial terms;
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functionality;
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existing business and customer relationships;
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the ability of products and services to meet customers’ immediate and future network requirements;
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power consumption;
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heat dissipation;
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form factor or density;
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installation and operational simplicity;
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service and support;
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security and encryption requirements;
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scalability and investment protection; and
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product lead times.
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reduced control over delivery schedules, particularly for international contract manufacturing sites;
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reliance on the quality assurance procedures of third parties;
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potential uncertainty regarding manufacturing yields and costs;
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potential lack of adequate capacity during periods of high demand;
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limited warranties on components;
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potential misappropriation of our intellectual property; and
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potential manufacturing disruptions (including disruptions caused by geopolitical events, military actions or natural disasters).
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reduced orders from existing customers;
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declining interest from potential customers;
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delays in our ability to recognize revenue or in collecting accounts receivables;
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costs associated with fixing hardware or software defects or replacing products;
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high service and warranty expenses;
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delays in shipments;
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high inventory excess and obsolescence expense;
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high levels of product returns;
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diversion of our engineering personnel from our product development efforts; and
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payment of liquidated damages, performance guarantees or similar penalties.
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our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, litigation, general corporate or other purposes may be limited; and
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a substantial portion of our future cash balance may be dedicated to the payment of the principal of our indebtedness as we have stated the intention to pay the principal amount of the Notes in cash upon conversion or when otherwise due, such that we would not have those funds available for use in our business
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variations in our operating results;
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changes in the estimates of our future operating results or external guidance on those results or changes in recommendations or business expectations by any securities analysts that elect to follow our common stock;
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announcements of technological innovations, new services or service enhancements, the gain or loss of customers, strategic alliances or agreements by us or by our competitors;
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market conditions in our industry, the industries of our customers and the economy as a whole;
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mergers and acquisitions by us, by our competitors or by our customers;
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recruitment or departure of key personnel; and
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adoption or modification of regulations, policies, procedures or programs applicable to our business.
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reduced demand for our products as a result of constraints on capital spending by our customers;
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increased price competition for our products, not only from our competitors, but also as a result of our customer’s or potential customer’s utilization of inventoried or underutilized products, which could put additional downward pressure on our near term gross profits;
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risk of excess or obsolete inventories;
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excess manufacturing capacity and higher associated overhead costs as a percentage of revenue; and
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more limited ability to accurately forecast our business and future financial performance.
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greater difficulty in collecting accounts receivable and longer collection periods;
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difficulties of managing and staffing international offices, and the increased travel, infrastructure and legal compliance costs associated with multiple international locations;
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political, social and economic instability, including wars, terrorism, political unrest, boycotts, curtailment of trade and other business restrictions;
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tariff and trade barriers and other regulatory requirements or contractual limitations on our ability to sell or develop our products in certain foreign markets;
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less effective protection of intellectual property than is afforded to us in the United States or other developed countries;
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local laws and practices that favor local companies, including business practices that we are prohibited from engaging in by the Foreign Corrupt Practices Act and other anti-corruption laws and regulations;
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potentially adverse tax consequences; and
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effects of changes in currency exchange rates, particularly relative increases in the exchange rate of the U.S. dollar versus other currencies that could negatively affect our financial results and cash flows.
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changes in the valuation of our deferred tax assets and liabilities, and in deferred tax valuation allowances;
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changes in the relative proportions of revenue and income before taxes in the various jurisdictions in which we operate that have differing statutory tax rates;
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changing tax laws, regulations, rates and interpretations in multiple jurisdictions in which we operate;
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changes in accounting and tax treatment of equity-based compensation;
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changes to the financial accounting rules for income taxes; and
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the resolution of issues arising from tax audits.
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issue stock that would dilute our current stockholders’ percentage ownership;
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incur debt and assume other liabilities;
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use a substantial portion of our cash resources; or
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incur amortization expenses related to other intangible assets and/or incur large and write-offs.
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problems integrating the acquired operations, technologies or products with our own;
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diversion of management’s attention from our core business;
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adverse impact on overall company operating results;
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adverse effects on existing business relationships with suppliers and customers;
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risks associated with entering new markets; and
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loss of key employees.
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authorize the issuance of “blank check” convertible preferred stock that could be issued by our board of directors to thwart a takeover attempt;
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establish a classified board of directors, as a result of which the successors to the directors whose terms have expired will be elected to serve from the time of election and qualification until the third annual meeting following their election;
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require that directors only be removed from office for cause and only upon a supermajority stockholder vote;
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provide that vacancies on the board of directors, including newly-created directorships, may be filled only by a majority vote of directors then in office rather than by stockholders;
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prevent stockholders from calling special meetings; and
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prohibit stockholder action by written consent, requiring all actions to be taken at a meeting of the stockholders.
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Location
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Function
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Square Footage
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Sunnyvale, CA
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Corporate headquarters and manufacturing
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321,000
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Annapolis Junction, MD
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Research and development, service and support
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12,000
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Carrollton, TX
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Sales, service and support (currently vacated)
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3,000
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Kanata, Canada
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Research and development
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19,000
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Stockholm, Sweden
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Research and development, sales, service and support
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78,000
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London, United Kingdom
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Sales, service and support
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6,000
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Bangalore, India
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Software development
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122,000
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Beijing, China
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Research and development
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22,000
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Hong Kong, China
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Sales, service and support
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2,000
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Tokyo, Japan
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Sales and support
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2,000
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ITEM 5.
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MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
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High
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Low
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Fourth Quarter 2017
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$
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9.09
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$
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6.27
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Third Quarter 2017
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$
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12.38
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$
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8.12
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Second Quarter 2017
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$
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12.27
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$
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9.09
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First Quarter 2017
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$
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12.50
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$
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8.35
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Fourth Quarter 2016
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$
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9.62
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$
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7.23
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Third Quarter 2016
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$
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13.24
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$
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8.20
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Second Quarter 2016
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$
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16.25
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$
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10.95
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First Quarter 2016
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$
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19.16
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$
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13.02
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Years Ended
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December 30,
2017
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December 31,
2016 |
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December 26,
2015 |
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December 27,
2014 |
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December 28,
2013 |
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(In thousands, except per share data)
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Revenue
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$
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740,739
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$
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870,135
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$
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886,714
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$
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668,079
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$
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544,122
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Gross profit
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$
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244,000
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$
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393,718
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$
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403,477
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$
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288,304
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$
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218,639
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Net income (loss)
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$
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(194,506
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)
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$
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(24,430
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)
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$
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50,950
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$
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13,659
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$
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(32,119
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)
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Net income (loss) attributable to Infinera Corporation
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$
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(194,506
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)
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$
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(23,927
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)
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$
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51,413
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$
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13,659
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$
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(32,119
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)
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Net income (loss) per common share attributable to Infinera Corporation:
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Basic
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$
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(1.32
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)
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$
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(0.17
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)
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$
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0.39
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$
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0.11
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$
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(0.27
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)
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Diluted
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$
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(1.32
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)
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$
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(0.17
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)
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$
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0.36
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$
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0.11
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$
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(0.27
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)
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Weighted average number of shares used in computing basic and diluted net income (loss) per common share:
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||||||||||
Basic
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147,878
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142,989
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133,259
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123,672
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117,425
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|||||
Diluted
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147,878
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142,989
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143,171
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128,565
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117,425
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|||||
Total cash and cash equivalents, investments and restricted cash
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$
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300,101
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$
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360,056
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|
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$
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356,479
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|
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$
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390,816
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|
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$
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365,313
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Cost-method investments
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$
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5,110
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$
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7,000
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$
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14,500
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$
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14,500
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$
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9,000
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Intangible assets, net
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$
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92,188
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|
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$
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108,475
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|
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$
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156,319
|
|
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$
|
361
|
|
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$
|
416
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Goodwill
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$
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195,615
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|
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$
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176,760
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|
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$
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191,560
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|
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$
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—
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|
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$
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—
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Total assets
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$
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1,117,670
|
|
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$
|
1,198,583
|
|
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$
|
1,226,294
|
|
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$
|
818,016
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|
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$
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700,926
|
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Short-term debt
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$
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144,928
|
|
|
$
|
—
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|
|
$
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—
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|
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$
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—
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|
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$
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—
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Long-term debt, net
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$
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—
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|
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$
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133,586
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|
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$
|
125,440
|
|
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$
|
116,894
|
|
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$
|
109,164
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Common stock and additional paid-in capital
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$
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1,417,192
|
|
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$
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1,354,227
|
|
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$
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1,300,441
|
|
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$
|
1,077,351
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|
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$
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1,025,781
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Infinera stockholders' equity
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$
|
665,365
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|
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$
|
762,328
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|
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$
|
762,151
|
|
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$
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481,907
|
|
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$
|
417,810
|
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Noncontrolling interest
|
$
|
—
|
|
|
$
|
—
|
|
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$
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14,910
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|
|
$
|
—
|
|
|
$
|
—
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Total stockholders’ equity
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$
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665,365
|
|
|
$
|
762,328
|
|
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$
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777,061
|
|
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$
|
481,907
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|
|
$
|
417,810
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ITEM 7.
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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|
Years Ended
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|
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|||||||||||||||
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December 30,
2017
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|
% of total
revenue
|
|
December 31,
2016 |
|
% of total
revenue
|
|
Change
|
|
% Change
|
|||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Product
|
$
|
610,535
|
|
|
82
|
%
|
|
$
|
751,167
|
|
|
86
|
%
|
|
$
|
(140,632
|
)
|
|
(19
|
)%
|
Services
|
130,204
|
|
|
18
|
%
|
|
118,968
|
|
|
14
|
%
|
|
11,236
|
|
|
9
|
%
|
|||
Total revenue
|
$
|
740,739
|
|
|
100
|
%
|
|
$
|
870,135
|
|
|
100
|
%
|
|
$
|
(129,396
|
)
|
|
(15
|
)%
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Product
|
$
|
427,118
|
|
|
58
|
%
|
|
$
|
433,266
|
|
|
50
|
%
|
|
$
|
(6,148
|
)
|
|
(1
|
)%
|
Services
|
50,480
|
|
|
7
|
%
|
|
43,151
|
|
|
5
|
%
|
|
7,329
|
|
|
17
|
%
|
|||
Restructuring and other related costs
|
19,141
|
|
|
2
|
%
|
|
—
|
|
|
—
|
%
|
|
19,141
|
|
|
100
|
%
|
|||
Total cost of revenue
|
$
|
496,739
|
|
|
67
|
%
|
|
$
|
476,417
|
|
|
55
|
%
|
|
$
|
20,322
|
|
|
4
|
%
|
Gross profit
|
$
|
244,000
|
|
|
32.9
|
%
|
|
$
|
393,718
|
|
|
45.2
|
%
|
|
$
|
(149,718
|
)
|
|
(38
|
)%
|
|
Years Ended
|
|
|
|
|
|||||||||||||||
|
December 31,
2016 |
|
% of total
revenue
|
|
December 26,
2015 |
|
% of total
revenue
|
|
Change
|
|
% Change
|
|||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Product
|
$
|
751,167
|
|
|
86
|
%
|
|
$
|
769,230
|
|
|
87
|
%
|
|
$
|
(18,063
|
)
|
|
(2
|
)%
|
Services
|
118,968
|
|
|
14
|
%
|
|
117,484
|
|
|
13
|
%
|
|
1,484
|
|
|
1
|
%
|
|||
Total revenue
|
$
|
870,135
|
|
|
100
|
%
|
|
$
|
886,714
|
|
|
100
|
%
|
|
$
|
(16,579
|
)
|
|
(2
|
)%
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Product
|
$
|
433,266
|
|
|
50
|
%
|
|
$
|
436,916
|
|
|
49
|
%
|
|
$
|
(3,650
|
)
|
|
(1
|
)%
|
Services
|
43,151
|
|
|
5
|
%
|
|
46,321
|
|
|
5
|
%
|
|
(3,170
|
)
|
|
(7
|
)%
|
|||
Total cost of revenue
|
$
|
476,417
|
|
|
55
|
%
|
|
$
|
483,237
|
|
|
54
|
%
|
|
$
|
(6,820
|
)
|
|
(1
|
)%
|
Gross profit
|
$
|
393,718
|
|
|
45.2
|
%
|
|
$
|
403,477
|
|
|
45.5
|
%
|
|
$
|
(9,759
|
)
|
|
(2
|
)%
|
|
Years Ended
|
|
|
|
|
|||||||||||||||
|
December 30,
2017
|
|
% of total revenue
|
|
December 31,
2016 |
|
% of total revenue
|
|
Change
|
|
% Change
|
|||||||||
Total revenue by geography
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Domestic
|
$
|
428,592
|
|
|
58
|
%
|
|
$
|
541,889
|
|
|
62
|
%
|
|
$
|
(113,297
|
)
|
|
(21
|
)%
|
International
|
312,147
|
|
|
42
|
%
|
|
328,246
|
|
|
38
|
%
|
|
(16,099
|
)
|
|
(5
|
)%
|
|||
|
$
|
740,739
|
|
|
100
|
%
|
|
$
|
870,135
|
|
|
100
|
%
|
|
$
|
(129,396
|
)
|
|
(15
|
)%
|
Total revenue by sales channel
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Direct
|
$
|
693,472
|
|
|
94
|
%
|
|
$
|
809,681
|
|
|
93
|
%
|
|
$
|
(116,209
|
)
|
|
(14
|
)%
|
Indirect
|
47,267
|
|
|
6
|
%
|
|
60,454
|
|
|
7
|
%
|
|
(13,187
|
)
|
|
(22
|
)%
|
|||
|
$
|
740,739
|
|
|
100
|
%
|
|
$
|
870,135
|
|
|
100
|
%
|
|
$
|
(129,396
|
)
|
|
(15
|
)%
|
|
Years Ended
|
|
|
|
|
|||||||||||||||
|
December 31,
2016 |
|
% of total revenue
|
|
December 26,
2015 |
|
% of total revenue
|
|
Change
|
|
% Change
|
|||||||||
Total revenue by geography
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Domestic
|
$
|
541,889
|
|
|
62
|
%
|
|
$
|
602,433
|
|
|
68
|
%
|
|
$
|
(60,544
|
)
|
|
(10
|
)%
|
International
|
328,246
|
|
|
38
|
%
|
|
284,281
|
|
|
32
|
%
|
|
43,965
|
|
|
15
|
%
|
|||
|
$
|
870,135
|
|
|
100
|
%
|
|
$
|
886,714
|
|
|
100
|
%
|
|
$
|
(16,579
|
)
|
|
(2
|
)%
|
Total revenue by sales channel
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Direct
|
$
|
809,681
|
|
|
93
|
%
|
|
$
|
825,952
|
|
|
93
|
%
|
|
$
|
(16,271
|
)
|
|
(2
|
)%
|
Indirect
|
60,454
|
|
|
7
|
%
|
|
60,762
|
|
|
7
|
%
|
|
(308
|
)
|
|
(1
|
)%
|
|||
|
$
|
870,135
|
|
|
100
|
%
|
|
$
|
886,714
|
|
|
100
|
%
|
|
$
|
(16,579
|
)
|
|
(2
|
)%
|
|
Years Ended
|
|
|
|
|
|||||||||||||||
|
December 30,
2017
|
|
% of total
revenue
|
|
December 31,
2016 |
|
% of total
revenue
|
|
Change
|
|
% Change
|
|||||||||
Research and development
|
$
|
224,299
|
|
|
30
|
%
|
|
$
|
232,291
|
|
|
27
|
%
|
|
$
|
(7,992
|
)
|
|
(3
|
)%
|
Sales and marketing
|
116,057
|
|
|
16
|
%
|
|
118,858
|
|
|
14
|
%
|
|
(2,801
|
)
|
|
(2
|
)%
|
|||
General and administrative
|
70,625
|
|
|
10
|
%
|
|
68,343
|
|
|
8
|
%
|
|
2,282
|
|
|
3
|
%
|
|||
Restructuring and other related costs
|
16,106
|
|
|
2
|
%
|
|
—
|
|
|
—
|
%
|
|
16,106
|
|
|
100
|
%
|
|||
Total operating expenses
|
$
|
427,087
|
|
|
58
|
%
|
|
$
|
419,492
|
|
|
49
|
%
|
|
$
|
7,595
|
|
|
2
|
%
|
|
Years Ended
|
|
|
|
|
|||||||||||||||
|
December 31,
2016 |
|
% of total
revenue
|
|
December 26,
2015 |
|
% of total
revenue
|
|
Change
|
|
% Change
|
|||||||||
Research and development
|
$
|
232,291
|
|
|
27
|
%
|
|
$
|
180,703
|
|
|
20
|
%
|
|
$
|
51,588
|
|
|
29
|
%
|
Sales and marketing
|
118,858
|
|
|
14
|
%
|
|
101,398
|
|
|
11
|
%
|
|
17,460
|
|
|
17
|
%
|
|||
General and administrative
|
68,343
|
|
|
8
|
%
|
|
61,640
|
|
|
7
|
%
|
|
6,703
|
|
|
11
|
%
|
|||
Total operating expenses
|
$
|
419,492
|
|
|
49
|
%
|
|
$
|
343,741
|
|
|
38
|
%
|
|
$
|
75,751
|
|
|
22
|
%
|
|
Years Ended
|
||||||||||
|
December 30,
2017
|
|
December 31,
2016 |
|
December 26,
2015 |
||||||
Research and development
|
$
|
15,845
|
|
|
$
|
13,732
|
|
|
$
|
11,055
|
|
Sales and marketing
|
11,288
|
|
|
11,043
|
|
|
8,081
|
|
|||
General and administration
|
10,776
|
|
|
9,295
|
|
|
7,354
|
|
|||
Total
|
$
|
37,909
|
|
|
$
|
34,070
|
|
|
$
|
26,490
|
|
|
Years Ended
|
||||||||||
|
December 30,
2017
|
|
December 31,
2016 |
|
December 26,
2015 |
||||||
|
|
|
|
|
|
||||||
|
(In thousands)
|
||||||||||
Interest income
|
$
|
3,328
|
|
|
$
|
2,478
|
|
|
$
|
1,837
|
|
Interest expense
|
(14,017
|
)
|
|
(12,887
|
)
|
|
(11,941
|
)
|
|||
Other gain (loss), net
|
(2,160
|
)
|
|
7,002
|
|
|
2,399
|
|
|||
Total other income (expense), net
|
$
|
(12,849
|
)
|
|
$
|
(3,407
|
)
|
|
$
|
(7,705
|
)
|
|
Years Ended
|
||||||||||
|
December 30, 2017
|
|
December 31, 2016
|
|
December 26, 2015
|
||||||
|
|
|
|
|
|
||||||
|
(In thousands)
|
||||||||||
Net cash flow provided by (used in):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
(21,925
|
)
|
|
$
|
38,377
|
|
|
$
|
133,176
|
|
Investing activities
|
$
|
(50,553
|
)
|
|
$
|
(12,115
|
)
|
|
$
|
(91,475
|
)
|
Financing activities
|
$
|
22,082
|
|
|
$
|
(8,866
|
)
|
|
$
|
20,983
|
|
|
Years Ended
|
||||||
|
December 30, 2017
|
|
December 31, 2016
|
||||
|
|
|
|
||||
|
(In thousands)
|
||||||
Cash and cash equivalents
|
$
|
116,345
|
|
|
$
|
162,641
|
|
Investments
|
178,615
|
|
|
182,476
|
|
||
Restricted cash
|
5,141
|
|
|
14,939
|
|
||
|
$
|
300,101
|
|
|
$
|
360,056
|
|
|
|
|
Payments Due by Period
|
||||||||||||||||
|
Total
|
|
Less than
1 year
|
|
1 - 3
years
|
|
3 - 5
years
|
|
More than
5 years
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Purchase obligations
(1)
|
$
|
96,053
|
|
|
$
|
96,053
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating leases
(2)
|
32,709
|
|
|
11,319
|
|
|
18,610
|
|
|
2,719
|
|
|
61
|
|
|||||
Convertible senior notes, including interest
|
151,313
|
|
|
151,313
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total contractual obligations
(3)
|
$
|
280,075
|
|
|
$
|
258,685
|
|
|
$
|
18,610
|
|
|
$
|
2,719
|
|
|
$
|
61
|
|
|
|
(1)
|
We have service agreements with our major production suppliers under which we are committed to purchase certain parts.
|
(2)
|
We lease facilities under non-cancelable operating lease agreements. These leases have varying terms that range from one to 10 years, and contain leasehold improvement incentives, rent holidays and escalation clauses. In addition, some of these leases have renewal options for up to five years. We also have contractual commitments to remove leasehold improvements and return certain properties to a specified condition when the leases terminate. At the inception of a lease with such conditions, we record an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. An assumption of lease renewal where a renewal option exists is used only when the renewal has been determined to be reasonably assured. The estimated useful life of leasehold improvements is one to 10 years. See Note 12, "Commitments and Contingencies," to the Notes to Consolidated Financial Statements for more information.
|
(3)
|
Tax liabilities of $2.9 million related to uncertain tax positions are not included in the table because we cannot reliably estimate the timing and amount of future payments, if any.
|
•
|
The expected term represents the weighted-average period that the stock options are expected to be outstanding prior to being exercised. The expected term is estimated based on our historical data on employee exercise patterns and post vesting termination behavior to estimate expected exercises over the contractual term of grants.
|
•
|
Expected volatility of our stock has been historically based on the weighted-average implied and historical volatility of Infinera and its peer group. The peer group is comprised of similar companies in the same industrial sector. As we gained more historical volatility data, the weighting of our own data in the expected volatility calculation associated with options gradually increased to 100% by 2013.
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
Page
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
116,345
|
|
|
$
|
162,641
|
|
Short-term investments
|
147,596
|
|
|
141,697
|
|
||
Short-term restricted cash
|
544
|
|
|
8,490
|
|
||
Accounts receivable, net of allowance for doubtful accounts of $892 in 2017 and $772 in 2016
|
126,152
|
|
|
150,370
|
|
||
Inventory
|
214,704
|
|
|
232,955
|
|
||
Prepaid expenses and other current assets
|
42,596
|
|
|
34,270
|
|
||
Total current assets
|
647,937
|
|
|
730,423
|
|
||
Property, plant and equipment, net
|
135,942
|
|
|
124,800
|
|
||
Intangible assets
|
92,188
|
|
|
108,475
|
|
||
Goodwill
|
195,615
|
|
|
176,760
|
|
||
Long-term investments
|
31,019
|
|
|
40,779
|
|
||
Cost-method investments
|
5,110
|
|
|
7,000
|
|
||
Long-term restricted cash
|
4,597
|
|
|
6,449
|
|
||
Other non-current assets
|
5,262
|
|
|
3,897
|
|
||
Total assets
|
$
|
1,117,670
|
|
|
$
|
1,198,583
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
58,124
|
|
|
$
|
62,486
|
|
Accrued expenses
|
39,782
|
|
|
31,580
|
|
||
Accrued compensation and related benefits
|
45,751
|
|
|
46,637
|
|
||
Short-term debt
|
144,928
|
|
|
—
|
|
||
Accrued warranty
|
13,670
|
|
|
16,930
|
|
||
Deferred revenue
|
72,421
|
|
|
58,900
|
|
||
Total current liabilities
|
374,676
|
|
|
216,533
|
|
||
Long-term debt, net
|
—
|
|
|
133,586
|
|
||
Accrued warranty, non-current
|
17,239
|
|
|
23,412
|
|
||
Deferred revenue, non-current
|
22,502
|
|
|
19,362
|
|
||
Deferred tax liability, non-current
|
21,609
|
|
|
25,327
|
|
||
Other long-term liabilities
|
16,279
|
|
|
18,035
|
|
||
Commitments and contingencies (Note 12)
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, $0.001 par value
Authorized shares—25,000 and no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.001 par value
Authorized shares—500,000 in 2017 and 2016
Issued and outstanding shares—149,471 in 2017 and 145,021 in 2016
|
149
|
|
|
145
|
|
||
Additional paid-in capital
|
1,417,043
|
|
|
1,354,082
|
|
||
Accumulated other comprehensive income (loss)
|
6,254
|
|
|
(28,324
|
)
|
||
Accumulated deficit
|
(758,081
|
)
|
|
(563,575
|
)
|
||
Total stockholders' equity
|
665,365
|
|
|
762,328
|
|
||
Total liabilities and stockholders’ equity
|
$
|
1,117,670
|
|
|
$
|
1,198,583
|
|
|
Years Ended
|
||||||||||
|
December 30, 2017
|
|
December 31, 2016
|
|
December 26, 2015
|
||||||
Revenue:
|
|
|
|
|
|
||||||
Product
|
$
|
610,535
|
|
|
$
|
751,167
|
|
|
$
|
769,230
|
|
Services
|
130,204
|
|
|
118,968
|
|
|
117,484
|
|
|||
Total revenue
|
740,739
|
|
|
870,135
|
|
|
886,714
|
|
|||
Cost of revenue:
|
|
|
|
|
|
||||||
Cost of product
|
427,118
|
|
|
433,266
|
|
|
436,916
|
|
|||
Cost of services
|
50,480
|
|
|
43,151
|
|
|
46,321
|
|
|||
Restructuring and other related costs
|
19,141
|
|
|
—
|
|
|
—
|
|
|||
Total cost of revenue
|
496,739
|
|
|
476,417
|
|
|
483,237
|
|
|||
Gross profit
|
244,000
|
|
|
393,718
|
|
|
403,477
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Research and development
|
224,299
|
|
|
232,291
|
|
|
180,703
|
|
|||
Sales and marketing
|
116,057
|
|
|
118,858
|
|
|
101,398
|
|
|||
General and administrative
|
70,625
|
|
|
68,343
|
|
|
61,640
|
|
|||
Restructuring and other related costs
|
16,106
|
|
|
—
|
|
|
—
|
|
|||
Total operating expenses
|
427,087
|
|
|
419,492
|
|
|
343,741
|
|
|||
Income (loss) from operations
|
(183,087
|
)
|
|
(25,774
|
)
|
|
59,736
|
|
|||
Other income (expense), net:
|
|
|
|
|
|
||||||
Interest income
|
3,328
|
|
|
2,478
|
|
|
1,837
|
|
|||
Interest expense
|
(14,017
|
)
|
|
(12,887
|
)
|
|
(11,941
|
)
|
|||
Other gain (loss), net
|
(2,160
|
)
|
|
7,002
|
|
|
2,399
|
|
|||
Total other income (expense), net
|
(12,849
|
)
|
|
(3,407
|
)
|
|
(7,705
|
)
|
|||
Income (loss) before income taxes
|
(195,936
|
)
|
|
(29,181
|
)
|
|
52,031
|
|
|||
Provision for (benefit from) income taxes
|
(1,430
|
)
|
|
(4,751
|
)
|
|
1,081
|
|
|||
Net income (loss)
|
(194,506
|
)
|
|
(24,430
|
)
|
|
50,950
|
|
|||
Less: Loss attributable to noncontrolling interest
|
—
|
|
|
(503
|
)
|
|
(463
|
)
|
|||
Net income (loss) attributable to Infinera Corporation
|
$
|
(194,506
|
)
|
|
$
|
(23,927
|
)
|
|
$
|
51,413
|
|
Net income (loss) per common share attributable to Infinera Corporation:
|
|
|
|
|
|
||||||
Basic
|
$
|
(1.32
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
0.39
|
|
Diluted
|
$
|
(1.32
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
0.36
|
|
Weighted average shares used in computing net income (loss) per common share:
|
|
|
|
|
|
||||||
Basic
|
147,878
|
|
|
142,989
|
|
|
133,259
|
|
|||
Diluted
|
147,878
|
|
|
142,989
|
|
|
143,171
|
|
|
Years Ended
|
||||||||||
|
December 30, 2017
|
|
December 31, 2016
|
|
December 26, 2015
|
||||||
Net income (loss)
|
$
|
(194,506
|
)
|
|
$
|
(24,430
|
)
|
|
$
|
50,950
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Unrealized gain (loss) on available-for-sale investments
|
(209
|
)
|
|
297
|
|
|
(62
|
)
|
|||
Foreign currency translation adjustment
|
34,787
|
|
|
(29,625
|
)
|
|
5,803
|
|
|||
Tax effect on items related to available-for-sale investments
|
—
|
|
|
(119
|
)
|
|
—
|
|
|||
Net change in accumulated other comprehensive income (loss)
|
34,578
|
|
|
(29,447
|
)
|
|
5,741
|
|
|||
Less: Comprehensive loss attributable to noncontrolling interest
|
—
|
|
|
(503
|
)
|
|
(463
|
)
|
|||
Comprehensive income (loss) attributable to Infinera Corporation
|
$
|
(159,928
|
)
|
|
$
|
(53,374
|
)
|
|
$
|
57,154
|
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Accumulated
Deficit
|
|
Total Stockholders' Equity
|
|
Noncontrolling Interest
|
|
Total
|
|||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
||||||||||||||||||||||||
Balance at December 27, 2014
|
|
126,160
|
|
|
$
|
126
|
|
|
1,077,225
|
|
|
$
|
(4,618
|
)
|
|
$
|
(590,826
|
)
|
|
$
|
481,907
|
|
|
$
|
—
|
|
|
$
|
481,907
|
|
|
Stock options exercised
|
|
1,787
|
|
|
2
|
|
|
13,092
|
|
|
—
|
|
|
—
|
|
|
13,094
|
|
|
—
|
|
|
13,094
|
|
|||||||
ESPP shares issued
|
|
1,229
|
|
|
1
|
|
|
12,252
|
|
|
—
|
|
|
|
|
|
12,253
|
|
|
—
|
|
|
12,253
|
|
|||||||
Shares withheld for tax obligations
|
|
(300
|
)
|
|
—
|
|
|
(5,227
|
)
|
|
—
|
|
|
—
|
|
|
(5,227
|
)
|
|
—
|
|
|
(5,227
|
)
|
|||||||
Restricted stock units released
|
|
3,448
|
|
|
3
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Issuance of common stock related to acquisition
|
|
7,873
|
|
|
8
|
|
|
169,499
|
|
|
—
|
|
|
—
|
|
|
169,507
|
|
|
—
|
|
|
169,507
|
|
|||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
32,621
|
|
|
—
|
|
|
—
|
|
|
32,621
|
|
|
—
|
|
|
32,621
|
|
|||||||
Noncontrolling interest investment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,373
|
|
|
15,373
|
|
|||||||
Tax benefit from share-based award activity
|
|
—
|
|
|
—
|
|
|
842
|
|
|
—
|
|
|
—
|
|
|
842
|
|
|
—
|
|
|
842
|
|
|||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,741
|
|
|
—
|
|
|
5,741
|
|
|
—
|
|
|
5,741
|
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,413
|
|
|
51,413
|
|
|
(463
|
)
|
|
50,950
|
|
|||||||
Balance at December 26, 2015
|
|
140,197
|
|
|
$
|
140
|
|
|
$
|
1,300,301
|
|
|
$
|
1,123
|
|
|
$
|
(539,413
|
)
|
|
$
|
762,151
|
|
|
$
|
14,910
|
|
|
$
|
777,061
|
|
Stock options exercised
|
|
825
|
|
|
1
|
|
|
4,094
|
|
|
—
|
|
|
—
|
|
|
4,095
|
|
|
—
|
|
|
4,095
|
|
|||||||
ESPP shares issued
|
|
1,369
|
|
|
1
|
|
|
13,607
|
|
|
—
|
|
|
—
|
|
|
13,608
|
|
|
—
|
|
|
13,608
|
|
|||||||
Shares withheld for tax obligations
|
|
(287
|
)
|
|
|
|
|
(3,657
|
)
|
|
—
|
|
|
—
|
|
|
(3,657
|
)
|
|
—
|
|
|
(3,657
|
)
|
|||||||
Restricted stock units released
|
|
2,917
|
|
|
3
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Stock-based compensation
|
|
|
|
|
|
|
|
42,552
|
|
|
—
|
|
|
|
|
|
42,552
|
|
|
—
|
|
|
42,552
|
|
|||||||
Noncontrolling interest investment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,407
|
)
|
|
(14,407
|
)
|
|||||||
Squeeze-out Proceedings
|
|
—
|
|
|
|
|
(2,812
|
)
|
|
—
|
|
|
—
|
|
|
(2,812
|
)
|
|
—
|
|
|
(2,812
|
)
|
||||||||
Cumulative-effect adjustment from adoption of ASU 2016-09
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(235
|
)
|
|
(235
|
)
|
|
—
|
|
|
(235
|
)
|
|||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,447
|
)
|
|
—
|
|
|
(29,447
|
)
|
|
—
|
|
|
(29,447
|
)
|
|||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,927
|
)
|
|
(23,927
|
)
|
|
(503
|
)
|
|
(24,430
|
)
|
|||||||
Balance at December 31, 2016
|
|
145,021
|
|
|
$
|
145
|
|
|
$
|
1,354,082
|
|
|
$
|
(28,324
|
)
|
|
$
|
(563,575
|
)
|
|
$
|
762,328
|
|
|
$
|
—
|
|
|
$
|
762,328
|
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Accumulated
Deficit
|
|
Total Stockholders' Equity
|
|
Noncontrolling Interest
|
|
Total
|
|||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
||||||||||||||||||||||||
Balance at December 31, 2016
|
|
145,021
|
|
|
$
|
145
|
|
|
$
|
1,354,082
|
|
|
$
|
(28,324
|
)
|
|
$
|
(563,575
|
)
|
|
$
|
762,328
|
|
|
$
|
—
|
|
|
$
|
762,328
|
|
Stock options exercised
|
|
196
|
|
|
—
|
|
|
1,525
|
|
|
—
|
|
|
—
|
|
|
1,525
|
|
|
—
|
|
|
1,525
|
|
|||||||
ESPP shares issued
|
|
2,140
|
|
|
2
|
|
|
16,409
|
|
|
—
|
|
|
—
|
|
|
16,411
|
|
|
—
|
|
|
16,411
|
|
|||||||
Shares withheld for tax obligations
|
|
(110
|
)
|
|
—
|
|
|
(1,034
|
)
|
|
—
|
|
|
—
|
|
|
(1,034
|
)
|
|
—
|
|
|
(1,034
|
)
|
|||||||
Restricted stock units released
|
|
2,224
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
46,063
|
|
|
—
|
|
|
—
|
|
|
46,063
|
|
|
—
|
|
|
46,063
|
|
|||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,578
|
|
|
—
|
|
|
34,578
|
|
|
—
|
|
|
34,578
|
|
|||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(194,506
|
)
|
|
(194,506
|
)
|
|
—
|
|
|
(194,506
|
)
|
|||||||
Balance at December 30, 2017
|
|
149,471
|
|
|
$
|
149
|
|
|
$
|
1,417,043
|
|
|
$
|
6,254
|
|
|
$
|
(758,081
|
)
|
|
$
|
665,365
|
|
|
$
|
—
|
|
|
$
|
665,365
|
|
|
Years Ended
|
||||||||||
|
December 30, 2017
|
|
December 31, 2016
|
|
December 26, 2015
|
||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(194,506
|
)
|
|
$
|
(24,430
|
)
|
|
$
|
50,950
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
65,997
|
|
|
61,489
|
|
|
35,777
|
|
|||
Non-cash restructuring and other related costs
|
29,237
|
|
|
—
|
|
|
—
|
|
|||
Amortization of debt discount and issuance costs
|
11,342
|
|
|
10,260
|
|
|
9,281
|
|
|||
Amortization of premium on investments
|
463
|
|
|
1,069
|
|
|
2,917
|
|
|||
Impairment of intangible assets
|
252
|
|
|
11,295
|
|
|
—
|
|
|||
Realized gain on sale of cost-method investments
|
—
|
|
|
(8,983
|
)
|
|
—
|
|
|||
Impairment of cost-method investment
|
1,890
|
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation expense
|
45,720
|
|
|
40,533
|
|
|
32,580
|
|
|||
Other (gain) loss
|
40
|
|
|
672
|
|
|
(442
|
)
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
25,849
|
|
|
33,895
|
|
|
(15,971
|
)
|
|||
Inventory
|
2,727
|
|
|
(64,095
|
)
|
|
(17,116
|
)
|
|||
Prepaid expenses and other assets
|
(8,194
|
)
|
|
(5,501
|
)
|
|
(3,248
|
)
|
|||
Accounts payable
|
(4,763
|
)
|
|
(28,254
|
)
|
|
19,223
|
|
|||
Accrued liabilities and other expenses
|
(14,395
|
)
|
|
(11,012
|
)
|
|
8,448
|
|
|||
Deferred revenue
|
16,416
|
|
|
21,439
|
|
|
10,777
|
|
|||
Net cash provided by (used in) operating activities
|
(21,925
|
)
|
|
38,377
|
|
|
133,176
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
||||||
Purchase of available-for-sale investments
|
(160,215
|
)
|
|
(124,077
|
)
|
|
(186,737
|
)
|
|||
Proceeds from sales of available-for-sale investments
|
10,531
|
|
|
—
|
|
|
67,303
|
|
|||
Proceeds from maturities and calls of investments
|
152,876
|
|
|
142,898
|
|
|
213,234
|
|
|||
Purchase of cost-method investments
|
—
|
|
|
(7,000
|
)
|
|
—
|
|
|||
Proceeds from sale of cost-method investments
|
—
|
|
|
23,483
|
|
|
—
|
|
|||
Purchase of property and equipment
|
(58,041
|
)
|
|
(43,335
|
)
|
|
(42,018
|
)
|
|||
Acquisition of business, net of cash acquired
|
—
|
|
|
—
|
|
|
(144,445
|
)
|
|||
Realized gain from forward contract for business acquisition
|
—
|
|
|
—
|
|
|
1,053
|
|
|||
Change in restricted cash
|
4,296
|
|
|
(4,084
|
)
|
|
135
|
|
|||
Net cash used in investing activities
|
(50,553
|
)
|
|
(12,115
|
)
|
|
(91,475
|
)
|
|||
Cash Flows from Financing Activities:
|
|
|
|
|
|
||||||
Security pledge related to acquire noncontrolling interest
|
5,596
|
|
|
(6,086
|
)
|
|
—
|
|
|||
Acquisition of noncontrolling interest
|
(471
|
)
|
|
(16,771
|
)
|
|
—
|
|
|||
Proceeds from issuance of common stock
|
17,991
|
|
|
17,648
|
|
|
25,351
|
|
|||
Minimum tax withholding paid on behalf of employees for net share settlement
|
(1,034
|
)
|
|
(3,657
|
)
|
|
(5,227
|
)
|
|||
Excess tax benefit from stock option transactions
|
—
|
|
|
—
|
|
|
859
|
|
|||
Net cash provided by (used in) financing activities
|
22,082
|
|
|
(8,866
|
)
|
|
20,983
|
|
|||
Effect of exchange rate changes on cash
|
4,100
|
|
|
(3,856
|
)
|
|
(78
|
)
|
|||
Net change in cash and cash equivalents
|
(46,296
|
)
|
|
13,540
|
|
|
62,606
|
|
|||
Cash and cash equivalents at beginning of period
|
162,641
|
|
|
149,101
|
|
|
86,495
|
|
|||
Cash and cash equivalents at end of period
|
$
|
116,345
|
|
|
$
|
162,641
|
|
|
$
|
149,101
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
Cash paid for income taxes, net of refunds
|
$
|
5,690
|
|
|
$
|
6,625
|
|
|
$
|
4,570
|
|
Cash paid for interest
|
$
|
2,639
|
|
|
$
|
2,776
|
|
|
$
|
2,647
|
|
Supplemental schedule of non-cash investing and financing activities:
|
|
|
|
|
|
||||||
Transfer of inventory to fixed assets
|
$
|
4,950
|
|
|
$
|
5,597
|
|
|
$
|
9,314
|
|
Common stock issued in connection with acquisition
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
169,507
|
|
•
|
The expected term represents the weighted-average period that the stock options are expected to be outstanding prior to being exercised. The expected term is estimated based on the Company’s historical data on employee exercise patterns and post vesting termination behavior to estimate expected exercises over the contractual term of grants.
|
•
|
Expected volatility of the Company’s stock is based on the weighted-average implied and historical volatility of the Company.
|
Level 1
|
|
–
|
|
Quoted prices in active markets for identical assets or liabilities.
|
|
|
|
|
|
Level 2
|
|
–
|
|
Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
|
|
|
|
|
Level 3
|
|
–
|
|
Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable.
|
|
Estimated Useful Lives
|
Building
|
20 years
|
Laboratory and manufacturing equipment
|
1.5 to 10 years
|
Furniture and fixtures
|
3 to 5 years
|
Computer hardware and software
|
1.5 to 7 years
|
Leasehold and building improvements
|
1 to 10 years
|
|
As of December 30, 2017
|
|
As of December 31, 2016
|
||||||||||||||||||||
|
Fair Value Measured Using
|
|
Fair Value Measured Using
|
||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Money market funds
|
$
|
20,371
|
|
|
$
|
—
|
|
|
$
|
20,371
|
|
|
$
|
41,773
|
|
|
$
|
—
|
|
|
$
|
41,773
|
|
Certificates of deposit
|
—
|
|
|
240
|
|
|
240
|
|
|
—
|
|
|
1,881
|
|
|
1,881
|
|
||||||
Commercial paper
|
—
|
|
|
26,912
|
|
|
26,912
|
|
|
—
|
|
|
39,310
|
|
|
39,310
|
|
||||||
Corporate bonds
|
—
|
|
|
118,558
|
|
|
118,558
|
|
|
—
|
|
|
88,324
|
|
|
88,324
|
|
||||||
U.S. agency notes
|
—
|
|
|
5,480
|
|
|
5,480
|
|
|
—
|
|
|
11,759
|
|
|
11,759
|
|
||||||
U.S. treasuries
|
35,408
|
|
|
—
|
|
|
35,408
|
|
|
52,092
|
|
|
—
|
|
|
52,092
|
|
||||||
Foreign currency exchange forward contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
187
|
|
|
187
|
|
||||||
Total assets
|
$
|
55,779
|
|
|
$
|
151,190
|
|
|
$
|
206,969
|
|
|
$
|
93,865
|
|
|
$
|
141,461
|
|
|
$
|
235,326
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency exchange forward contracts
|
$
|
—
|
|
|
$
|
(204
|
)
|
|
$
|
(204
|
)
|
|
$
|
—
|
|
|
$
|
(71
|
)
|
|
$
|
(71
|
)
|
|
December 30, 2017
|
||||||||||||||
|
Adjusted
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
Cash
|
$
|
87,991
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
87,991
|
|
Money market funds
|
20,371
|
|
|
—
|
|
|
—
|
|
|
20,371
|
|
||||
U.S. treasuries
|
7,984
|
|
|
—
|
|
|
(1
|
)
|
|
7,983
|
|
||||
Total cash and cash equivalents
|
$
|
116,346
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
116,345
|
|
Certificates of deposit
|
240
|
|
|
—
|
|
|
—
|
|
|
240
|
|
||||
Commercial paper
|
26,924
|
|
|
—
|
|
|
(12
|
)
|
|
26,912
|
|
||||
Corporate bonds
|
90,685
|
|
|
—
|
|
|
(155
|
)
|
|
90,530
|
|
||||
U.S. agency notes
|
2,500
|
|
|
—
|
|
|
(11
|
)
|
|
2,489
|
|
||||
U.S. treasuries
|
27,495
|
|
|
—
|
|
|
(70
|
)
|
|
27,425
|
|
||||
Total short-term investments
|
$
|
147,844
|
|
|
$
|
—
|
|
|
$
|
(248
|
)
|
|
$
|
147,596
|
|
Corporate bonds
|
28,186
|
|
|
—
|
|
|
(158
|
)
|
|
28,028
|
|
||||
U.S. agency notes
|
3,002
|
|
|
—
|
|
|
(11
|
)
|
|
2,991
|
|
||||
Total long-term investments
|
$
|
31,188
|
|
|
$
|
—
|
|
|
$
|
(169
|
)
|
|
$
|
31,019
|
|
Total cash, cash equivalents and investments
|
$
|
295,378
|
|
|
$
|
—
|
|
|
$
|
(418
|
)
|
|
$
|
294,960
|
|
|
December 31, 2016
|
||||||||||||||
|
Adjusted
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
Cash
|
$
|
109,978
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
109,978
|
|
Money market funds
|
41,773
|
|
|
—
|
|
|
—
|
|
|
41,773
|
|
||||
Commercial paper
|
8,892
|
|
|
—
|
|
|
(1
|
)
|
|
8,891
|
|
||||
U.S. agency notes
|
1,999
|
|
|
—
|
|
|
—
|
|
|
1,999
|
|
||||
Total cash and cash equivalents
|
$
|
162,642
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
162,641
|
|
Certificates of deposit
|
1,881
|
|
|
—
|
|
|
—
|
|
|
1,881
|
|
||||
Commercial paper
|
30,425
|
|
|
—
|
|
|
(6
|
)
|
|
30,419
|
|
||||
Corporate bonds
|
63,097
|
|
|
1
|
|
|
(59
|
)
|
|
63,039
|
|
||||
U.S. agency notes
|
7,285
|
|
|
—
|
|
|
(8
|
)
|
|
7,277
|
|
||||
U.S. treasuries
|
39,093
|
|
|
9
|
|
|
(21
|
)
|
|
39,081
|
|
||||
Total short-term investments
|
$
|
141,781
|
|
|
$
|
10
|
|
|
$
|
(94
|
)
|
|
$
|
141,697
|
|
Corporate bonds
|
25,374
|
|
|
—
|
|
|
(89
|
)
|
|
25,285
|
|
||||
U.S. agency notes
|
2,499
|
|
|
—
|
|
|
(16
|
)
|
|
2,483
|
|
||||
U.S. treasuries
|
13,032
|
|
|
2
|
|
|
(23
|
)
|
|
13,011
|
|
||||
Total long-term investments
|
$
|
40,905
|
|
|
$
|
2
|
|
|
$
|
(128
|
)
|
|
$
|
40,779
|
|
Total cash, cash equivalents and investments
|
$
|
345,328
|
|
|
$
|
12
|
|
|
$
|
(223
|
)
|
|
$
|
345,117
|
|
4.
|
Cost-method Investments
|
|
As of December 30, 2017
|
|
As of December 31, 2016
|
||||||||||||||||||||
|
Gross
Notional
(1)
|
|
Prepaid Expenses and Other Assets
|
|
Other
Accrued
Liabilities
|
|
Gross
Notional
(1)
|
|
Prepaid Expenses and Other Assets
|
|
Other
Accrued
Liabilities
|
||||||||||||
Foreign currency exchange forward contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Related to euro denominated receivables
|
$
|
24,794
|
|
|
$
|
—
|
|
|
$
|
(202
|
)
|
|
$
|
23,887
|
|
|
$
|
137
|
|
|
$
|
(71
|
)
|
Related to British pound denominated receivables
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,353
|
|
|
$
|
48
|
|
|
$
|
—
|
|
Related to euro denominated restricted cash
|
$
|
252
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
242
|
|
|
$
|
2
|
|
|
$
|
—
|
|
Total
|
|
|
$
|
—
|
|
|
$
|
(204
|
)
|
|
|
|
$
|
187
|
|
|
$
|
(71
|
)
|
|
|
(1)
|
Represents the face amounts of forward contracts that were outstanding as of the period noted.
|
6.
|
Goodwill and Intangible Assets
|
Balance as of December 31, 2016
|
$
|
176,760
|
|
Foreign currency translation adjustments
|
18,855
|
|
|
Accumulated impairment loss
|
—
|
|
|
Balance as of December 30, 2017
|
$
|
195,615
|
|
|
December 30, 2017
|
||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Weighted Average Remaining Useful Life (In Years)
|
||||||
Intangible assets with finite lives:
|
|
|
|
|
|
|
|
||||||
Customer relationships
|
$
|
51,050
|
|
|
$
|
(15,007
|
)
|
|
$
|
36,043
|
|
|
5.6
|
Developed technology
|
104,708
|
|
|
(48,563
|
)
|
|
56,145
|
|
|
2.7
|
|||
Total intangible assets
|
$
|
155,758
|
|
|
$
|
(63,570
|
)
|
|
$
|
92,188
|
|
|
3.9
|
|
December 31, 2016
|
||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Weighted Average Remaining Useful Life (In Years)
|
||||||
Intangible assets with finite lives:
|
|
|
|
|
|
|
|
||||||
Trade names
|
$
|
220
|
|
|
$
|
(220
|
)
|
|
$
|
—
|
|
|
0.0
|
Customer relationships
|
46,125
|
|
|
(7,793
|
)
|
|
38,332
|
|
|
6.6
|
|||
Developed technology
|
94,320
|
|
|
(24,715
|
)
|
|
69,605
|
|
|
3.7
|
|||
Other intangible assets
|
819
|
|
|
(567
|
)
|
|
252
|
|
|
4.6
|
|||
Total intangible assets with finite lives
|
$
|
141,484
|
|
|
$
|
(33,295
|
)
|
|
$
|
108,189
|
|
|
4.7
|
Acquired in-process technology
|
286
|
|
|
—
|
|
|
286
|
|
|
|
|||
Total intangible assets
|
$
|
141,770
|
|
|
$
|
(33,295
|
)
|
|
$
|
108,475
|
|
|
|
|
|
|
Fiscal Years
|
||||||||||||||||||||
|
Total
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022 and Thereafter
|
||||||||||||
Total future amortization expense
|
$
|
92,188
|
|
|
$
|
27,591
|
|
|
$
|
26,968
|
|
|
$
|
19,681
|
|
|
$
|
7,194
|
|
|
$
|
10,754
|
|
7.
|
Balance Sheet Details
|
|
December 30,
2017
|
|
December 31,
2016 |
||||
Inventory:
|
|
|
|
||||
Raw materials
|
$
|
27,568
|
|
|
$
|
33,158
|
|
Work in process
|
59,662
|
|
|
74,533
|
|
||
Finished goods
|
127,474
|
|
|
125,264
|
|
||
Total
|
$
|
214,704
|
|
|
$
|
232,955
|
|
Property, plant and equipment, net:
|
|
|
|
||||
Computer hardware
|
$
|
13,881
|
|
|
$
|
12,775
|
|
Computer software
(1)
|
32,521
|
|
|
26,779
|
|
||
Laboratory and manufacturing equipment
|
246,380
|
|
|
222,311
|
|
||
Land and building
|
12,347
|
|
|
—
|
|
||
Furniture and fixtures
|
2,474
|
|
|
2,075
|
|
||
Leasehold and building improvements
|
43,475
|
|
|
42,267
|
|
||
Construction in progress
|
34,816
|
|
|
33,633
|
|
||
Subtotal
|
$
|
385,894
|
|
|
$
|
339,840
|
|
Less accumulated depreciation and amortization
(2)
|
(249,952
|
)
|
|
(215,040
|
)
|
||
Total
|
$
|
135,942
|
|
|
$
|
124,800
|
|
Accrued expenses:
|
|
|
|
||||
Loss contingency related to non-cancelable purchase commitments
|
$
|
6,379
|
|
|
$
|
5,555
|
|
Professional and other consulting fees
|
5,305
|
|
|
4,955
|
|
||
Taxes payable
|
3,707
|
|
|
2,384
|
|
||
Royalties
|
5,404
|
|
|
5,375
|
|
||
Restructuring accrual
|
5,490
|
|
|
—
|
|
||
Other accrued expenses
|
13,497
|
|
|
13,311
|
|
||
Total
|
$
|
39,782
|
|
|
$
|
31,580
|
|
|
|
(1)
|
Included in computer software at December 30. 2017 and December 31, 2016 were
$11.4 million
and
$9.1 million
, respectively, related to enterprise resource planning (“ERP”) systems that the Company implemented. The unamortized ERP costs at December 30, 2017 and December 31, 2016 were
$4.7 million
and
$4.0 million
, respectively.
|
(2)
|
Depreciation expense was
$39.4 million
,
$35.5 million
and
$26.8 million
(which includes depreciation of capitalized ERP costs of
$1.7 million
,
$1.2 million
and
$1.2 million
, respectively) for 2017, 2016 and 2015, respectively.
|
8.
|
Restructuring and Other Related Costs
|
|
Year Ended
|
|||||||
|
December 30, 2017
|
|||||||
|
Cost of Revenue
|
|
Operating Expenses
|
|||||
Severance and related expenses
|
$
|
1,510
|
|
|
$
|
7,931
|
|
|
Facilities
|
—
|
|
|
7,300
|
|
|||
Asset impairment
|
4,004
|
|
|
875
|
|
|||
Inventory write-downs
|
13,627
|
|
|
—
|
|
|||
Total
|
$
|
19,141
|
|
|
$
|
16,106
|
|
|
December 31, 2016
|
|
Charges
|
|
Cash
|
|
Non-cash Settlements and Other
|
|
December 30, 2017
|
|||||||||||
Severance and related expenses
|
$
|
—
|
|
|
$
|
9,441
|
|
|
$
|
(5,769
|
)
|
|
$
|
—
|
|
|
$
|
3,672
|
|
|
Facilities
|
—
|
|
|
7,300
|
|
|
(180
|
)
|
|
(173
|
)
|
|
6,947
|
|
||||||
Asset impairment
|
—
|
|
|
4,879
|
|
|
—
|
|
|
(4,879
|
)
|
|
—
|
|
||||||
Inventory write-downs
|
—
|
|
|
13,627
|
|
|
—
|
|
|
(13,627
|
)
|
|
—
|
|
||||||
Total
|
$
|
—
|
|
|
$
|
35,247
|
|
|
$
|
(5,949
|
)
|
|
$
|
(18,679
|
)
|
|
$
|
10,619
|
|
9.
|
Comprehensive Income (Loss)
|
|
Unrealized Gain (Loss) on Available-for-Sale Securities
|
|
Foreign Currency Translation
|
|
Accumulated Tax Effect
|
|
Total
|
||||||||
Balance at December 27, 2014
|
$
|
(444
|
)
|
|
$
|
(3,414
|
)
|
|
$
|
(760
|
)
|
|
$
|
(4,618
|
)
|
Other comprehensive loss before reclassifications
|
(62
|
)
|
|
5,803
|
|
|
—
|
|
|
5,741
|
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net current-period other comprehensive income
|
(62
|
)
|
|
5,803
|
|
|
—
|
|
|
5,741
|
|
||||
Balance at December 26, 2015
|
$
|
(506
|
)
|
|
$
|
2,389
|
|
|
$
|
(760
|
)
|
|
$
|
1,123
|
|
Other comprehensive income before reclassifications
|
297
|
|
|
(29,625
|
)
|
|
(119
|
)
|
|
(29,447
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net current-period other comprehensive loss
|
297
|
|
|
(29,625
|
)
|
|
(119
|
)
|
|
(29,447
|
)
|
||||
Balance at December 31, 2016
|
$
|
(209
|
)
|
|
$
|
(27,236
|
)
|
|
$
|
(879
|
)
|
|
$
|
(28,324
|
)
|
Other comprehensive loss before reclassifications
|
(209
|
)
|
|
34,787
|
|
|
—
|
|
|
34,578
|
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net current-period other comprehensive income
|
(209
|
)
|
|
34,787
|
|
|
—
|
|
|
34,578
|
|
||||
Balance at December 30, 2017
|
$
|
(418
|
)
|
|
$
|
7,551
|
|
|
$
|
(879
|
)
|
|
$
|
6,254
|
|
10.
|
Basic and Diluted Net Income (Loss) Per Common Share
|
|
Years Ended
|
||||||||||
|
December 30,
2017
|
|
December 31,
2016 |
|
December 26,
2015 |
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income (loss) attributable to Infinera Corporation
|
$
|
(194,506
|
)
|
|
$
|
(23,927
|
)
|
|
$
|
51,413
|
|
Denominator:
|
|
|
|
|
|
||||||
Basic weighted average common shares outstanding
|
147,878
|
|
|
142,989
|
|
|
133,259
|
|
|||
Effect of dilutive securities:
|
|
|
|
|
|
||||||
Employee equity plans
|
—
|
|
|
—
|
|
|
5,686
|
|
|||
Assumed conversion of convertible senior notes from conversion spread
|
—
|
|
|
—
|
|
|
4,226
|
|
|||
Dilutive weighted average common shares outstanding
|
147,878
|
|
|
142,989
|
|
|
143,171
|
|
|||
|
|
|
|
|
|
||||||
Net income (loss) per common share attributable to Infinera Corporation
|
|
|
|
|
|
||||||
Basic
|
$
|
(1.32
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
0.39
|
|
Diluted
|
$
|
(1.32
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
0.36
|
|
|
As of
|
|||||||
|
December 30,
2017
|
|
December 31,
2016 |
|
December 26,
2015 |
|||
Stock options outstanding
|
1,461
|
|
|
2,042
|
|
|
8
|
|
Restricted stock units
|
6,856
|
|
|
5,302
|
|
|
415
|
|
Performance stock units
|
1,420
|
|
|
896
|
|
|
73
|
|
Employee stock purchase plan shares
|
810
|
|
|
1,010
|
|
|
225
|
|
Total
|
10,547
|
|
|
9,250
|
|
|
721
|
|
11.
|
Convertible Senior Notes
|
•
|
during any fiscal quarter commencing after the fiscal quarter ending on September 28, 2013 (and only during such fiscal quarter) if the last reported sale price of the common stock for at least
20
trading days (whether or not consecutive) during a period of
30
consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to
130%
of the conversion price on each applicable trading day (the “Stock Price Conversion Trigger”);
|
•
|
during the
five
business day period after any
5
consecutive trading day period (the “measurement period”) in which the trading price per
$1,000
principal amount of Notes for each trading day of the measurement period was less than
98%
of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day;
|
•
|
upon the occurrence of specified corporate events described under the Indenture, such as a consolidation, merger or binding share exchange; or
|
•
|
at any time on or after December 1, 2017 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances.
|
|
December 30, 2017
|
|
December 31, 2016
|
||||
Principal
|
$
|
150,000
|
|
|
$
|
150,000
|
|
Unamortized discount
(1)
|
(4,670
|
)
|
|
(15,114
|
)
|
||
Unamortized issuance cost
(1)
|
(402
|
)
|
|
(1,300
|
)
|
||
Net carrying amount
|
$
|
144,928
|
|
|
$
|
133,586
|
|
|
|
(1)
|
Unamortized debt conversion discount and issuance costs will be amortized over the remaining life of the Notes, which is approximately
5 months
.
|
|
Years Ended
|
||||||||||
|
December 30, 2017
|
|
December 31, 2016
|
|
December 26, 2015
|
||||||
Contractual interest expense
|
$
|
2,625
|
|
|
$
|
2,625
|
|
|
$
|
2,625
|
|
Amortization of debt issuance costs
|
898
|
|
|
813
|
|
|
735
|
|
|||
Amortization of debt discount
|
10,444
|
|
|
9,447
|
|
|
8,546
|
|
|||
Total interest expense
|
$
|
13,967
|
|
|
$
|
12,885
|
|
|
$
|
11,906
|
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
|
Total
|
||||||||||||||
Operating lease payments
|
$
|
11,319
|
|
|
$
|
10,015
|
|
|
$
|
8,595
|
|
|
$
|
2,306
|
|
|
$
|
413
|
|
|
$
|
61
|
|
|
$
|
32,709
|
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
|
Total
|
||||||||||||||
Purchase obligations
|
$
|
96,053
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
96,053
|
|
|
December 30,
2017
|
|
December 31,
2016 |
||||
Beginning balance
|
$
|
40,342
|
|
|
$
|
38,844
|
|
Charges to operations
|
18,283
|
|
|
25,135
|
|
||
Utilization
|
(14,985
|
)
|
|
(16,884
|
)
|
||
Change in estimate
(1)
|
(12,731
|
)
|
|
(6,753
|
)
|
||
Balance at the end of the period
|
$
|
30,909
|
|
|
$
|
40,342
|
|
|
|
(1)
|
The Company records product warranty liabilities based on the latest quality and cost information available as of the date the revenue is recorded. The changes in estimate shown here are due to changes in overall actual failure rates, the mix of new versus used units related to replacement of failed units, and changes in the estimated cost of repair. As the Company's products mature over time, failure rates and repair costs generally decline leading to favorable changes in warranty reserves. In addition, during 2017, due to product quality improvements, the Company revised certain estimates used in calculating its product warranties that resulted in a one-time reduction to the warranty accrual of
$2.2 million
.
|
14.
|
Stockholders’ Equity
|
|
December 30, 2017
|
|
Outstanding stock options and awards
|
9,555
|
|
Reserved for future option and award grants
|
9,480
|
|
Reserved for future ESPP
|
2,524
|
|
Total common stock reserved for stock options and awards
|
21,559
|
|
|
Number of
Options
|
|
Weighted-Average
Exercise Price
Per Share
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding at December 27, 2014
|
4,298
|
|
|
$
|
7.29
|
|
|
$
|
32,833
|
|
Options granted
|
—
|
|
|
$
|
—
|
|
|
|
||
Options exercised
|
(1,787
|
)
|
|
$
|
7.33
|
|
|
$
|
21,566
|
|
Options canceled
|
—
|
|
|
$
|
—
|
|
|
|
||
Outstanding at December 26, 2015
|
2,511
|
|
|
$
|
7.26
|
|
|
$
|
28,288
|
|
Options granted
|
—
|
|
|
$
|
—
|
|
|
|
||
Options exercised
|
(825
|
)
|
|
$
|
4.97
|
|
|
$
|
4,433
|
|
Options canceled
|
(31
|
)
|
|
$
|
12.46
|
|
|
|
||
Outstanding at December 31, 2016
|
1,655
|
|
|
$
|
8.30
|
|
|
$
|
965
|
|
Options granted
|
—
|
|
|
$
|
—
|
|
|
|
||
Options exercised
|
(196
|
)
|
|
$
|
7.78
|
|
|
$
|
373
|
|
Options canceled
|
(62
|
)
|
|
$
|
14.11
|
|
|
|
||
Outstanding at December 30, 2017
|
1,397
|
|
|
$
|
8.11
|
|
|
$
|
1
|
|
Exercisable at December 30, 2017
|
1,397
|
|
|
$
|
8.11
|
|
|
$
|
1
|
|
|
Number of
Restricted
Stock Units
|
|
Weighted-Average
Grant Date
Fair Value
Per Share
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding at December 27, 2014
|
6,042
|
|
|
$
|
8.14
|
|
|
$
|
90,085
|
|
RSUs granted
|
2,202
|
|
|
$
|
18.48
|
|
|
|
||
RSUs released
|
(3,035
|
)
|
|
$
|
7.88
|
|
|
$
|
53,892
|
|
RSUs canceled
|
(277
|
)
|
|
$
|
10.95
|
|
|
|
||
Outstanding at December 26, 2015
|
4,932
|
|
|
$
|
12.76
|
|
|
$
|
91,285
|
|
RSUs granted
|
2,992
|
|
|
$
|
13.94
|
|
|
|
||
RSUs released
|
(2,303
|
)
|
|
$
|
11.06
|
|
|
$
|
26,407
|
|
RSUs canceled
|
(328
|
)
|
|
$
|
13.90
|
|
|
|
||
Outstanding at December 31, 2016
|
5,293
|
|
|
$
|
14.10
|
|
|
$
|
44,939
|
|
RSUs granted
|
4,281
|
|
|
$
|
9.66
|
|
|
|
|
|
RSUs released
|
(2,198
|
)
|
|
$
|
13.56
|
|
|
$
|
20,791
|
|
RSUs canceled
|
(585
|
)
|
|
$
|
13.24
|
|
|
|
||
Outstanding at December 30, 2017
|
6,791
|
|
|
$
|
11.55
|
|
|
$
|
42,988
|
|
|
Number of
Performance
Stock Units
|
|
Weighted-Average
Grant Date
Fair Value Per Share
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding at December 27, 2014
|
876
|
|
|
$
|
7.49
|
|
|
$
|
13,067
|
|
PSUs granted
|
332
|
|
|
$
|
18.23
|
|
|
|
||
PSU performance earned
(1)
|
129
|
|
|
$
|
7.32
|
|
|
|
||
PSUs released
|
(413
|
)
|
|
$
|
7.00
|
|
|
$
|
7,231
|
|
PSUs canceled
|
(193
|
)
|
|
$
|
8.03
|
|
|
|
||
Outstanding at December 26, 2015
|
731
|
|
|
$
|
12.35
|
|
|
$
|
13,540
|
|
PSUs granted
|
647
|
|
|
$
|
15.28
|
|
|
|
||
PSU performance earned
(1)
|
234
|
|
|
$
|
12.28
|
|
|
|
||
PSUs released
|
(614
|
)
|
|
$
|
11.34
|
|
|
$
|
8,077
|
|
PSUs canceled
|
(94
|
)
|
|
$
|
15.18
|
|
|
|
||
Outstanding at December 31, 2016
|
904
|
|
|
$
|
14.13
|
|
|
$
|
7,672
|
|
PSUs granted
|
916
|
|
|
$
|
10.88
|
|
|
|
|
|
PSUs released
|
(26
|
)
|
|
$
|
11.83
|
|
|
$
|
225
|
|
PSUs canceled
|
(427
|
)
|
|
$
|
12.20
|
|
|
|
||
Outstanding at December 30, 2017
|
1,367
|
|
|
$
|
16.28
|
|
|
$
|
8,651
|
|
Expected to vest as of December 30, 2017
|
55
|
|
|
|
|
$
|
348
|
|
|
|
(1)
|
Represents the additional PSUs awarded resulting from the achievement of performance goals above the performance targets established at grant.
|
|
Unrecognized
Compensation
Expense, Net
|
|
Weighted-
Average Period
(in years)
|
||
Stock options
|
$
|
1
|
|
|
0.04
|
RSUs
|
$
|
56,474
|
|
|
2.5
|
PSUs
|
$
|
9,620
|
|
|
1.5
|
|
|
Options Outstanding
|
|
Vested and Exercisable
Options
|
||||||||||||
Exercise Price
|
|
Number of
Shares
|
|
Weighted-
Average
Remaining
Contractual Life
|
|
Weighted-
Average
Exercise
Price
|
|
Number of
Shares
|
|
Weighted-
Average
Exercise
Price
|
||||||
|
|
(In thousands)
|
|
(In years)
|
|
|
|
(In thousands)
|
|
|
||||||
$6.30 - $ 7.25
|
|
261
|
|
|
1.65
|
|
$
|
6.88
|
|
|
261
|
|
|
$
|
6.88
|
|
$7.45 - $ 7.61
|
|
270
|
|
|
1.38
|
|
$
|
7.51
|
|
|
270
|
|
|
$
|
7.51
|
|
$7.68 - $ 8.19
|
|
235
|
|
|
2.45
|
|
$
|
8.07
|
|
|
235
|
|
|
$
|
8.07
|
|
$ 8.58
|
|
509
|
|
|
3.12
|
|
$
|
8.58
|
|
|
509
|
|
|
$
|
8.58
|
|
$9.02 - $13.54
|
|
122
|
|
|
1.54
|
|
$
|
10.22
|
|
|
122
|
|
|
$
|
10.23
|
|
|
|
1,397
|
|
|
2.26
|
|
$
|
8.11
|
|
|
1,397
|
|
|
$
|
8.11
|
|
|
Year Ended
|
Employee and Director Stock Options
|
December 27,
2014 |
Volatility
|
52%
|
Risk-free interest rate
|
1.3%
|
Expected life
|
4.3 years
|
Estimated fair value
|
3.85
|
|
Years Ended
|
||||
|
December 30,
2017
|
|
December 31,
2016 |
|
December 26,
2015 |
Volatility
|
47% - 51%
|
|
56% - 67%
|
|
39% - 53%
|
Risk-free interest rate
|
0.81% - 1.16%
|
|
0.51% - 0.52%
|
|
0.13% - 0.26%
|
Expected life
|
0.5 years
|
|
0.5 years
|
|
0.5 years
|
Estimated fair value
|
$2.44 - $3.46
|
|
$3.16 - $4.53
|
|
$5.15 - $6.43
|
|
Years Ended
|
||||||||||
|
December 30,
2017
|
|
December 31,
2016 |
|
December 26,
2015 |
||||||
Stock-based compensation expense
|
$
|
6,049
|
|
|
$
|
6,094
|
|
|
$
|
4,472
|
|
Employee contributions
|
$
|
16,410
|
|
|
$
|
13,609
|
|
|
$
|
12,253
|
|
Shares purchased
|
2,140
|
|
|
1,369
|
|
|
1,229
|
|
|
|
2017
|
|
2016
|
|
2015
|
Index
|
|
SPGIIPTR
|
|
SPGIIPTR
|
|
SPGIIPTR
|
Index volatility
|
|
33% - 34%
|
|
18%
|
|
18% - 19%
|
Infinera volatility
|
|
55% - 56%
|
|
55%
|
|
48%
|
Risk-free interest rate
|
|
1.41% - 1.63%
|
|
0.95% - 1.07%
|
|
0.97% - 1.10%
|
Correlation with index
|
|
0.10 - 0.49
|
|
0.58 - 0.59
|
|
0.52
|
Estimated fair value
|
|
$15.23 - $17.35
|
|
$10.31 - $16.62
|
|
$18.08 - $19.29
|
|
|
|
|
Grant Year
|
|||||||||||
|
|
Total Number of Performance Stock Units
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|||||
Outstanding at December 31, 2016
|
|
904
|
|
|
123
|
|
|
148
|
|
|
633
|
|
|
—
|
|
PSUs granted
|
|
916
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
916
|
|
PSUs released
|
|
(26
|
)
|
|
(20
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
PSUs canceled
|
|
(427
|
)
|
|
(102
|
)
|
|
(65
|
)
|
|
(213
|
)
|
|
(47
|
)
|
Outstanding at December 30, 2017
|
|
1,367
|
|
|
1
|
|
|
77
|
|
|
420
|
|
|
869
|
|
|
|
(1)
|
Represents the additional PSUs awarded resulting from the achievement of performance goals above the performance targets established at grant since the original grants were at 100% of target amounts.
|
|
Years Ended
|
||||||||||
|
December 30,
2017
|
|
December 31,
2016 |
|
December 26,
2015 |
||||||
Stock-based compensation effects in inventory
|
$
|
5,255
|
|
|
$
|
4,911
|
|
|
$
|
3,129
|
|
Stock-based compensation effects in fixed assets
|
$
|
41
|
|
|
$
|
67
|
|
|
$
|
93
|
|
Stock-based compensation effects in net income (loss) before income taxes
|
|
|
|
|
|
||||||
Cost of revenue
|
$
|
3,065
|
|
|
$
|
2,966
|
|
|
$
|
2,405
|
|
Research and development
|
15,845
|
|
|
13,732
|
|
|
11,055
|
|
|||
Sales and marketing
|
11,288
|
|
|
11,043
|
|
|
8,081
|
|
|||
General and administrative
|
10,776
|
|
|
9,295
|
|
|
7,354
|
|
|||
|
$
|
40,974
|
|
|
$
|
37,036
|
|
|
$
|
28,895
|
|
Cost of revenue—amortization from balance sheet
(1)
|
4,746
|
|
|
3,497
|
|
|
3,685
|
|
|||
Total stock-based compensation expense
|
$
|
45,720
|
|
|
$
|
40,533
|
|
|
$
|
32,580
|
|
|
|
(1)
|
Represents stock-based compensation expense deferred to inventory and deferred inventory costs in prior periods and recognized in the current period.
|
15.
|
Income Taxes
|
|
Years Ended
|
||||||||||
|
December 30,
2017
|
|
December 31,
2016 |
|
December 26,
2015 |
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
—
|
|
State
|
69
|
|
|
861
|
|
|
1,239
|
|
|||
Foreign
|
4,679
|
|
|
2,288
|
|
|
3,482
|
|
|||
Total current
|
$
|
4,748
|
|
|
$
|
3,181
|
|
|
$
|
4,721
|
|
Deferred:
|
|
|
|
|
|
||||||
Federal
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
State
|
—
|
|
|
—
|
|
|
—
|
|
|||
Foreign
|
(6,178
|
)
|
|
(7,932
|
)
|
|
(3,640
|
)
|
|||
Total deferred
|
$
|
(6,178
|
)
|
|
$
|
(7,932
|
)
|
|
$
|
(3,640
|
)
|
Total provision (benefit)
|
$
|
(1,430
|
)
|
|
$
|
(4,751
|
)
|
|
$
|
1,081
|
|
|
Years Ended
|
|||||||
|
December 30,
2017 |
|
December 31,
2016 |
|
December 26,
2015 |
|||
Expected tax (benefit) at federal statutory rate
|
(35.0
|
)%
|
|
(35.0
|
)%
|
|
35.0
|
%
|
State taxes, net of federal benefit
|
—
|
%
|
|
2.2
|
%
|
|
1.5
|
%
|
Research credits
|
(1.8
|
)%
|
|
(8.9
|
)%
|
|
(5.0
|
)%
|
Stock-based compensation
|
6.0
|
%
|
|
22.3
|
%
|
|
9.6
|
%
|
Change in valuation allowance
|
26.8
|
%
|
|
(5.9
|
)%
|
|
(43.0
|
)%
|
Foreign rate differential
|
3.3
|
%
|
|
9.4
|
%
|
|
4.0
|
%
|
Other
|
—
|
%
|
|
(0.4
|
)%
|
|
—
|
%
|
Effective tax rate
|
(0.7
|
)%
|
|
(16.3
|
)%
|
|
2.1
|
%
|
|
Years Ended
|
||||||
|
December 30,
2017
|
|
December 31,
2016 |
||||
Deferred tax assets:
|
|
|
|
||||
Net operating losses
|
$
|
66,122
|
|
|
$
|
77,670
|
|
Research and foreign tax credits
|
74,434
|
|
|
47,405
|
|
||
Nondeductible accruals
|
28,801
|
|
|
42,507
|
|
||
Inventory valuation
|
29,197
|
|
|
30,449
|
|
||
Property, plant and equipment
|
1,919
|
|
|
1,692
|
|
||
Intangible assets
|
3
|
|
|
119
|
|
||
Stock-based compensation
|
6,325
|
|
|
9,412
|
|
||
Total deferred tax assets
|
$
|
206,801
|
|
|
$
|
209,254
|
|
Valuation allowance
|
(205,241
|
)
|
|
(200,476
|
)
|
||
Net deferred tax assets
|
$
|
1,560
|
|
|
$
|
8,778
|
|
Deferred tax liabilities:
|
|
|
|
||||
Depreciation
|
(67
|
)
|
|
(239
|
)
|
||
Accruals, reserves and prepaid expenses
|
(1,154
|
)
|
|
(4,008
|
)
|
||
Acquired intangible assets
|
(20,348
|
)
|
|
(24,088
|
)
|
||
Convertible senior notes
|
(1,191
|
)
|
|
(5,653
|
)
|
||
Total deferred tax liabilities
|
$
|
(22,760
|
)
|
|
$
|
(33,988
|
)
|
Net deferred tax liabilities
|
$
|
(21,200
|
)
|
|
$
|
(25,210
|
)
|
|
December 30,
2017
|
|
December 31,
2016 |
|
December 26,
2015 |
||||||
Beginning balance
|
$
|
22,282
|
|
|
$
|
19,130
|
|
|
$
|
16,978
|
|
Tax position related to current year
|
|
|
|
|
|
||||||
Additions
|
2,234
|
|
|
2,548
|
|
|
2,891
|
|
|||
Tax positions related to prior years
|
|
|
|
|
|
||||||
Additions
|
—
|
|
|
1,292
|
|
|
—
|
|
|||
Reductions
|
(4,728
|
)
|
|
—
|
|
|
(497
|
)
|
|||
Lapses of statute of limitations
|
(2
|
)
|
|
(688
|
)
|
|
(242
|
)
|
|||
Ending balance
|
$
|
19,786
|
|
|
$
|
22,282
|
|
|
$
|
19,130
|
|
16.
|
Segment Information
|
|
Years Ended
|
||||||||||
|
December 30,
2017
|
|
December 31,
2016 |
|
December 26,
2015 |
||||||
United States
|
$
|
428,592
|
|
|
$
|
541,889
|
|
|
$
|
602,433
|
|
Other Americas
|
20,070
|
|
|
40,036
|
|
|
65,075
|
|
|||
Europe, Middle East and Africa
|
234,972
|
|
|
243,783
|
|
|
174,380
|
|
|||
Asia Pacific and Japan
|
57,105
|
|
|
44,427
|
|
|
44,826
|
|
|||
Total revenue
|
$
|
740,739
|
|
|
$
|
870,135
|
|
|
$
|
886,714
|
|
|
December 30,
2017
|
|
December 31,
2016 |
||||
United States
|
$
|
128,582
|
|
|
$
|
117,715
|
|
Other Americas
|
661
|
|
|
218
|
|
||
Europe, Middle East and Africa
|
3,527
|
|
|
3,822
|
|
||
Asia Pacific and Japan
|
3,172
|
|
|
3,045
|
|
||
Total property, plant and equipment, net
|
$
|
135,942
|
|
|
$
|
124,800
|
|
17.
|
Employee Benefit Plan
|
18.
|
Financial Information by Quarter (Unaudited)
|
|
For the Three Months Ended (Unaudited)
|
||||||||||||||||||||||||||||||
|
|
|
2017
|
|
|
|
2016
|
||||||||||||||||||||||||
|
Dec. 30
|
|
Sep. 30
|
|
Jul. 1
|
|
Apr. 1
|
|
Dec. 31
|
|
Sep. 24
|
|
Jun. 25
|
|
Mar. 26
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
(In thousands, except per share data)
|
|
|
|
|
||||||||||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Product
|
$
|
160,543
|
|
|
$
|
159,579
|
|
|
$
|
143,360
|
|
|
$
|
147,053
|
|
|
$
|
151,365
|
|
|
$
|
156,188
|
|
|
$
|
227,532
|
|
|
$
|
216,082
|
|
Services
|
35,273
|
|
|
33,001
|
|
|
33,461
|
|
|
28,469
|
|
|
29,678
|
|
|
29,264
|
|
|
31,290
|
|
|
28,736
|
|
||||||||
Total revenue
|
195,816
|
|
|
192,580
|
|
|
176,821
|
|
|
175,522
|
|
|
181,043
|
|
|
185,452
|
|
|
258,822
|
|
|
244,818
|
|
||||||||
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cost of product
|
115,681
|
|
|
111,803
|
|
|
100,302
|
|
|
99,332
|
|
|
101,702
|
|
|
91,064
|
|
|
122,438
|
|
|
118,062
|
|
||||||||
Cost of services
|
13,708
|
|
|
12,951
|
|
|
11,687
|
|
|
12,134
|
|
|
10,309
|
|
|
9,786
|
|
|
12,638
|
|
|
10,418
|
|
||||||||
Restructuring and other related costs
|
19,141
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total cost of revenue
|
148,530
|
|
|
124,754
|
|
|
111,989
|
|
|
111,466
|
|
|
112,011
|
|
|
100,850
|
|
|
135,076
|
|
|
128,480
|
|
||||||||
Gross profit
|
47,286
|
|
|
67,826
|
|
|
64,832
|
|
|
64,056
|
|
|
69,032
|
|
|
84,602
|
|
|
123,746
|
|
|
116,338
|
|
||||||||
Operating expenses
|
117,793
|
|
|
102,074
|
|
|
105,337
|
|
|
101,883
|
|
|
114,900
|
|
|
95,461
|
|
|
107,664
|
|
|
101,467
|
|
||||||||
Income (loss) from operations
|
(70,507
|
)
|
|
(34,248
|
)
|
|
(40,505
|
)
|
|
(37,827
|
)
|
|
(45,868
|
)
|
|
(10,859
|
)
|
|
16,082
|
|
|
14,871
|
|
||||||||
Other income (expense), net
|
(4,449
|
)
|
|
(2,772
|
)
|
|
(2,846
|
)
|
|
(2,782
|
)
|
|
5,589
|
|
|
(2,854
|
)
|
|
(3,295
|
)
|
|
(2,847
|
)
|
||||||||
Income (loss) before income taxes
|
(74,956
|
)
|
|
(37,020
|
)
|
|
(43,351
|
)
|
|
(40,609
|
)
|
|
(40,279
|
)
|
|
(13,713
|
)
|
|
12,787
|
|
|
12,024
|
|
||||||||
Provision for (benefit from) income taxes
|
(971
|
)
|
|
211
|
|
|
(512
|
)
|
|
(158
|
)
|
|
(4,026
|
)
|
|
(2,416
|
)
|
|
1,475
|
|
|
216
|
|
||||||||
Net income (loss)
|
$
|
(73,985
|
)
|
|
$
|
(37,231
|
)
|
|
$
|
(42,839
|
)
|
|
$
|
(40,451
|
)
|
|
$
|
(36,253
|
)
|
|
$
|
(11,297
|
)
|
|
$
|
11,312
|
|
|
$
|
11,808
|
|
Less: Net loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(125
|
)
|
|
(171
|
)
|
|
(207
|
)
|
||||||||
Net income (loss) attributable to Infinera Corporation
|
$
|
(73,985
|
)
|
|
$
|
(37,231
|
)
|
|
$
|
(42,839
|
)
|
|
$
|
(40,451
|
)
|
|
$
|
(36,253
|
)
|
|
$
|
(11,172
|
)
|
|
$
|
11,483
|
|
|
$
|
12,015
|
|
Net income (loss) per common share attributable to Infinera Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
$
|
(0.50
|
)
|
|
$
|
(0.25
|
)
|
|
$
|
(0.29
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
(0.25
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
0.08
|
|
|
$
|
0.09
|
|
Diluted
|
$
|
(0.50
|
)
|
|
$
|
(0.25
|
)
|
|
$
|
(0.29
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
(0.25
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
0.08
|
|
|
$
|
0.08
|
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS, FINANCIAL STATEMENT SCHEDULES
|
|
Years Ended
|
||||||||||
|
December 30,
2017
|
|
December 31,
2016 |
|
December 26,
2015 |
||||||
|
|
|
|
|
|
||||||
|
(In thousands)
|
||||||||||
Deferred tax asset, valuation allowance
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
200,476
|
|
|
$
|
169,240
|
|
|
$
|
199,698
|
|
Additions
|
31,759
|
|
|
31,913
|
|
|
15,266
|
|
|||
Reductions
|
(26,994
|
)
|
|
(677
|
)
|
|
(45,724
|
)
|
|||
Ending balance
|
$
|
205,241
|
|
|
$
|
200,476
|
|
|
$
|
169,240
|
|
Allowance for doubtful accounts
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
772
|
|
|
$
|
630
|
|
|
$
|
38
|
|
Additions
|
138
|
|
|
772
|
|
|
657
|
|
|||
Reductions
|
(18
|
)
|
|
(630
|
)
|
|
(65
|
)
|
|||
Ending balance
|
$
|
892
|
|
|
$
|
772
|
|
|
$
|
630
|
|
ITEM 16.
|
FORM 10-K SUMMARY
|
Exhibit No.
|
|
Description
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
Exhibit No.
|
|
Description
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
*
|
Management contracts or compensation plans or arrangements in which directors or executive officers are eligible to participate.
|
**
|
This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filings under the Securities Act of 1933 or the Securities Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.
|
|
Infinera Corporation
|
||
|
|
|
|
|
By:
|
|
/s/ BRAD D. FELLER
|
|
|
|
Brad D. Feller
Chief Financial Officer
Principal Financial and Accounting Officer
|
Name and Signature
|
Title
|
Date
|
|
|
|
/s/ THOMAS J. FALLON
|
Chief Executive Officer, Principal Executive Officer and Director
|
February 27, 2018
|
Thomas J. Fallon
|
||
|
|
|
/s/ BRAD D. FELLER
|
Chief Financial Officer, Principal Financial and
Accounting Officer |
February 27, 2018
|
Brad D. Feller
|
||
|
|
|
/s/ DAVID F. WELCH, PH.D.
|
Co-founder, Chief Strategy and Technology Officer and Director
|
February 27, 2018
|
David F. Welch, Ph.D.
|
||
|
|
|
/s/ KAMBIZ Y. HOOSHMAND
|
Chairman of the Board
|
February 27, 2018
|
Kambiz Y. Hooshmand
|
||
|
|
|
/s/ JOHN P. DAANE
|
Director
|
February 27, 2018
|
John P. Daane
|
||
|
|
|
/s/ MARCEL GANI
|
Director
|
February 27, 2018
|
Marcel Gani
|
||
|
|
|
/s/ PAUL J. MILBURY
|
Director
|
February 27, 2018
|
Paul J. Milbury
|
||
|
|
|
/s/ RAJAL M. PATEL
|
Director
|
February 27, 2018
|
Rajal M. Patel
|
|
|
|
|
|
/s/ MARK A. WEGLEITNER
|
Director
|
February 27, 2018
|
Mark A. Wegleitner
|
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