UPDATE 1-Infinera Q4 loss narrower-than-expected, CFO to resign

* Q4 adj loss/shr, rev beats Street view

* Sees Q1 adj loss/shr $0.10-$0.11 vs est $-0.07

* Q1 sales forecast beats estimates

* CFO Williams to be replaced by Brennan

* Shares fall 3 pct after the bell

Jan 26 (BestGrowthStock) – Communications equipment maker Infinera
Corp (INFN.O: ) posted a narrower-than-expected quarterly loss,
and said that expenses related to a new product launch would
hurt its first quarter.

“Operating expenses will increase in first quarter,
primarily due to significant increases in research and
development, and we believe that first quarter will be our peak
expense level for 2010,” Chief Financial Officer Duston
Williams said on a conference call with analysts.

The company forecast a first-quarter loss of 10 cents to 11
cents a share, on revenue of $92 million to $94 million,
compared with analysts expectations of a loss of 7 cents a
share, excluding items, on revenue of $84.6 million, according
to Thomson Reuters I/B/E/S.

“They guided to sequential growth in what has been
historically a seasonally down quarter suggesting that the
optical industry is in an early stages of recovery,” Pacific
Crest Securities analyst Brent Bracelin said.

Infinera, which competes with Alcatel-Lucent (ALUA.PA: )
(ALU.N: ), Ciena Corp (CIEN.O: ) and Cisco Systems Inc (CSCO.O: ),
also said Ita Brennan will take over as its CFO succeeding
Duston Williams who will resign effective June 26.

Fourth-quarter net loss increased to $18.7 million, or 19
cents per share, from $6.7 million, or 7 cents per share, a
year earlier.

Excluding items, the company posted a loss of 7 cents a
share, on revenue of $90.2 million.

Analysts expected a loss of 8 cents a share, excluding
exceptional items, on revenue of $87.9 million.

Infinera, which provides digital optical networking systems
to telecom carriers, counts companies such as Cox
Communications Inc, Deutsche Telekom AG (DTEGn.DE: ), Spain’s
Telefonica (TEF.MC: ), Level 3 Communications (LVLT.O: ) and Global
Crossing Ltd (GLBC.O: ) among its customers.

Level 3 sales contributed 12 percent of company’s GAAP
revenue, it said on a conference call with analysts.

Shares of the Sunnyvale, California-based company fell
three percent in trading after the bell, but recouped those
losses to trade flat at $7.80, their Tuesday’s closing on

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(Reporting by Shrutika Verma in Bangalore; Editing by Savio

UPDATE 1-Infinera Q4 loss narrower-than-expected, CFO to resign