April 21, 2009 / 10:32 PM / 10 years ago

UPDATE 2-Infinera posts wider-than-expected Q1 loss

* Q1 loss/shr $0.26 vs est loss $0.21/shr

* GAAP revenue $66.6 mln vs est $67.3 mln

* Sees Q2 loss/shr $0.19-$0.23 vs est loss $0.14/shr

* Sees Q2 rev $70 mln vs est $77.0 mln (Adds outlook from conference call, details)

April 21 (Reuters) - Communications chipmaker Infinera Corp (INFN.O) posted a wider-than-expected quarterly loss as revenue more than halved, mostly due to a delay in the recognition of revenue related to deployment of products and services, and forecast a weak second quarter.

“The combination of macroeconomic effects and timing associated with some large deployments put downward pressure on our revenue and gross margins for the first quarter,” Chief Executive Jagdeep Singh said in a statement.

The company’s second-quarter performance will be influenced by factors similar to those that occurred in the first quarter, Chief Financial Officer Duston Williams said on a conference call with analysts.

For the second quarter, the company expects to post a loss of 19 cents to 23 cents a share, compared with analysts’ average estimate of 14 cents a share.

The company, which competes with Alcatel-Lucent ALUA.PA ALU.N, Ciena Corp CIEN.O and Cisco Systems Inc (CSCO.O), expects second-quarter gross margins of 25 percent to 30 percent.

For the third quarter, however, the company expects higher sequential revenue and gross margins.

The company, which provides digital optical networking systems to telecom carriers, posted a net loss of $24.3 million, or 26 cents per share, in the first quarter ended March 28.

Shares of the company, which have lost 40 percent of their value in the past one year, were trading down 2 percent at $9.06 after the bell. They closed at $9.29 Tuesday on Nasdaq.

For the alerts, please double click [ID:nWNAB5792] [ID:nWNAB5858] (Reporting by Mansi Dutta in Bangalore; Editing by Deepak Kannan and Anne Pallivathuckal)

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