Financial Information by Quarter (Unaudited)

The following table sets forth the Company’s unaudited quarterly consolidated statements of operations data for 2016 and 2015. The data has been prepared on the same basis as the audited consolidated financial statements and related notes included in this report. The table includes all necessary adjustments, consisting only of normal recurring adjustments that the Company considers necessary for a fair presentation of this data.



	For the Three Months Ended (Unaudited)
				2016									2015
	Dec. 31			Sep. 24			Jun. 25			Mar. 26			Dec. 26			Sep. 26			Jun. 27		Mar. 28
							(In thousands, except per share data)
Revenue:
Product	$	151,365		$	156,188		$	227,532		$	216,082		$	227,040		$	202,365		$	178,982	$	160,843
Services	29,678			29,264			31,290			28,736			32,994			30,107			28,364		26,019
Total revenue	181,043			185,452			258,822			244,818			260,034			232,472			207,346		186,862
Cost of revenue:
Cost of product	101,702			91,064			122,438			118,062			130,765			117,154			99,491		89,506
Cost of services	10,309			9,786			12,638			10,418			13,505			12,513			11,059		9,244
Total cost of revenue	112,011			100,850			135,076			128,480			144,270			129,667			110,550		98,750
Gross profit	69,032			84,602			123,746			116,338			115,764			102,805			96,796		88,112
Operating expenses	114,900			95,461			107,664			101,467			101,975			88,545			80,266		72,955
Income (loss) from operations	(45,868		)	(10,859		)	16,082			14,871			13,789			14,260			16,530		15,157
Other income (expense), net	5,589			(2,854		)	(3,295		)	(2,847		)	(2,013		)	(5,901		)	2,384		(2,175		)
Income (loss) before income taxes	(40,279		)	(13,713		)	12,787			12,024			11,776			8,359			18,914		12,982
Provision for (benefit from) income taxes	(4,026		)	(2,416		)	1,475			216			(392		)	(151		)	1,008		616
Net income (loss)	$	(36,253	)	$	(11,297	)	$	11,312		$	11,808		$	12,168		$	8,510		$	17,906	$	12,366
Less: Net loss attributable to noncontrolling interest	—			(125		)	(171		)	(207		)	(463		)	—			—		—
Net income (loss) attributable to Infinera Corporation	$	(36,253	)	$	(11,172	)	$	11,483		$	12,015		$	12,631		$	8,510		$	17,906	$	12,366
Net income (loss) per common share attributable to Infinera Corporation
Basic	$	(0.25	)	$	(0.08	)	$	0.08		$	0.09		$	0.09		$	0.06		$	0.14	$	0.10
Diluted	$	(0.25	)	$	(0.08	)	$	0.08		$	0.08		$	0.08		$	0.06		$	0.13	$	0.09

The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the last Saturday of December in each year. Accordingly, fiscal year 2016 was a 53-week year that ended on December 31, 2016, and fiscal year 2015 was a 52-week year that ended on December 26, 2015 . The quarters for fiscal years 2016 and 2015 were 14-week and 13-week quarters, respectively.

During the third quarter of 2015, the Company completed its public offer to the shareholders of Transmode, acquiring 95.8% of the outstanding common shares and voting interest in Transmode. This acquisition was accounted for as a business combination, and accordingly, the Company has consolidated the financial results of Transmode with its financial results since the Acquisition Date.

During the fourth quarter of 2016, the Company recorded an impairment charge of $11.3 million related to in-process research and development, resulting from the Company's decision to abandon previously acquired in-process technologies. Additionally, during the same period, the Company recognized a gain of $9.0 million on the sale of a cost-method investment.