Has Infinera Turned the Corner?
The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.
Infinera's DTN-X offering continues to attract new customers. The company looks like it's ready to turn the corner. Infinera's sales came in slightly ahead of analysts' estimates, and the company still generated a loss on earnings. But Infinera now has 16 purchase commitments from customers, up from 10 in the previous quarter and four in the quarter before that. There is an unnamed Tier 1 customer that many think may be Verizon. It's more likely to be a carrier such as CenturyLink.
One catalyst coming up is that Infinera expects to receive its OSMINE certification, which would open up the domestic telecom market. Infinera faces plenty of competition from incumbents such as Ciena and Alcatel-Lucent. But the company continues to see good early adoption for its DTN-X product. It was nice to hear about revenue growth coming in 2013. Infinera has turned the corner and the stock is attractive here.
We all would like to build long-term wealth and retire well. In our free report "3 Stocks That Will Help You Retire Rich," we reveal some outstanding stock ideas that might help you achieve your long-term investing goals. Click here to keep reading.
The article Has Infinera Turned the Corner? originally appeared on Fool.com.David Meier owns shares of Infinera. John Reeves owns shares of Verizon Communications. The Motley Fool owns shares of Infinera. Motley Fool newsletter services recommend Infinera. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.