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    David Kang

    Senior Research Analyst at B. Riley

    Dave Kang is a Senior Research Analyst at B. Riley Securities, specializing in communications equipment with a primary focus on optical networking companies such as Applied Optoelectronics, Aviat Networks, Ciena, Coherent Corp., Extreme Networks, Fabrinet, Infinera, Lumentum Holdings, Luna Innovations, Ribbon Communications, Vecima Networks, and Viavi Solutions. He has established a strong performance track record, ranking as a top-100 analyst with a 66% success rate and an average return per transaction of 23.5%. Kang began his analyst career over 26 years ago, previously serving as Senior Research Analyst at Roth Capital and ABN Amro before joining B. Riley in 2017. He holds a B.S. in Electrical Engineering from Caltech and an M.S. in Electrical Engineering from the University of Southern California.

    David Kang's questions to INFN leadership

    David Kang's questions to INFN leadership • Q1 2024

    Question

    Asked about the customer inventory situation and how much longer it will take to normalize. He also asked for clarification on whether the large design wins are hard contracts with minimums or just based on customer forecasts, and when they would start to hit the backlog.

    Answer

    The company indicated that excess inventory was enough to cause about $25 million in book-ship delays in Q1 and a similar amount in Q2, but they believe the situation is thinning out and will normalize in the second half of the year. They reiterated that the design wins are not hard contracts but are based on customer forecasts, with purchase orders issued against them over time. These would start hitting the backlog towards the end of the current year, supporting the growth outlook for late 2024 and 2025.

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