WASHINGTON (dpa-AFX) - Fiber optic equipment maker Infinera Corp. (INFN), Thursday reported a swing to profit in the fourth quarter, driven largely by higher revenues and a sharp increase in margins. With both earnings and revenues for the quarter coming in ahead of Wall Street estimates, Infinera shares surged 14 percent in the extend trade on the Nasdaq.
Sunnyvale, California-based Infinera's fourth-quarter profit rose to $8.41 million or $0.06 per share, compared to a loss of $10.18 million or $0.08 per share prior year.
Adjusted earnings for the quarter were $0.13 per share, compared to breakeven per share last year. On average, ten analysts polled by Thomson Reuters expected earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the fourth quarter grew to $186.31 million from $139.09 million last year. Analysts had a consensus revenue estimate of $181.14 million for the quarter.
Gross margin for the quarter improved to 45.3 percent from 40.2 percent last year, while operating margin was 6.9 percent compared to an operating loss of 5.1 percent last year.
'The fourth quarter capped off an exceptional year of winning footprint, taking care of customers and increasing profitability. Growing greater than 20% for a second consecutive year demonstrates the market's acceptance of our differentiated products and the overall Infinera experience,' said CEO Tom Fallon.
INFN closed Thursday's trading at $14.40, up $0.32 or 2.27%, on the Nasdaq. The stock further gained $2.05 or 14.24% in the after-hours trade.
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