Why Infinera Plunged
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What: Shares of Infinera (NAS: INFN) plunged today by as much as 10% after the company reported earnings that missed expectations.
So what: Revenue in the second quarter came in at $93.5 million, looking short compared with both the $96.2 million consensus and the $96 million in sales a year ago. The bottom line came in on target, but that target included red ink to the tune of $0.16 per share.
Now what: CEO Tom Fallon said the company made good on its commitment to deliver its DTN-X product to market and finished customer trials. The platform is now shipping for deployment, and reception so far has been positive. Infinera has purchase commitments in hand from 10 customers for the offering and will begin recognizing revenue on those sales in the third quarter. As with many IT plays, concerns linger over the broader macro environment and capital spending.
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