The Weight of Infinera

Optics needs a hit IPO

Craig Matsumoto, Editor-in-Chief, Light Reading

May 24, 2007

1 Min Read
The Weight of Infinera

2:15 PM -- Could the Infinera IPO drag optical components down even further?

It's possible, if Infinera tanks. Wall Street tends to group companies in buckets, and a few sources around optical think Infinera -- which, yes, sells systems -- could color the thinking around optical component IPOs.

We already know MRV Communications Inc. (Nasdaq: MRVC) plans to spin off LuminentOIC Inc. as a public company. (See MRV Buys Fiberxon, Preps IPO.) And, like rookies in the minors, NeoPhotonics Corp. (NYSE: NPTN) and Santur Corp. are said to be waiting their turn at bat for IPOs.

But the optical sector hasn't done much to gain Wall Street's favor lately. Recent IPO filers, IPG Photonics Corp. (Nasdaq: IPGP), Optium Corp. (Nasdaq: OPTM), and Opnext Inc. (Nasdaq: OPXT), got off to good starts but have been gliding downward.

Table 1: Optical IPOs: Down to Earth

IPO Date

IPO price

Closing Price,Day One

Closing Price,May 23, 2007

Optium

Oct. 26, 2006

$17.50

$19.60

$15.66

IPG

Dec. 13, 2006

$16.50

$25.60

$21.61

Opnext

Feb. 16, 2007

$15.00

$17.89

$10.71





It hasn't helped, either, that market king JDSU (Nasdaq: JDSU; Toronto: JDU) stumbled last quarter and might even want out of the business. (See JDSU Regresses in Q3 and JDSU May Be Mulling Optical Exit.)

Maybe I should stop being so gloomy and ask the question the optimistic way: Could a successful Infinera IPO lift the optical sector?

— Craig Matsumoto, West Coast Editor, Light Reading

About the Author(s)

Craig Matsumoto

Editor-in-Chief, Light Reading

Yes, THAT Craig Matsumoto – who used to be at Light Reading from 2002 until 2013 and then went away and did other stuff and now HE'S BACK! As Editor-in-Chief. Go Craig!!

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like