3:25 PM Huatever happened to its Level 3 business?

Craig Matsumoto, Editor-in-Chief, Light Reading

August 5, 2009

1 Min Read
Infinera's Smoking Gun

3:25 PM -- Analyst Andrew Schmitt of Infonetics Research Inc. brings this one to our attention: On July 31, Infinera Corp. (Nasdaq: INFN) filed an 8-K tacitly admitting that it's lost some Level 3 Communications Inc. (NYSE: LVLT) business to Huawei Technologies Co. Ltd.

Word of Level 3's change of heart had spread in late July. (See Is Huawei in at Level 3?)

Granted, the filing doesn't mention Huawei by name. But it does talk about potential lost business beginning in 2010, and Huawei seems the likely culprit. Here's the text.

On July 29, 2009, we were informed by Level 3 Communications (“Level 3”) that they intend to use another DWDM vendor in their network. We believe that this vendor will be given a significant portion of Level 3’s new network deployments commencing in the first half of 2010. Level 3 has informed us that they intend to continue to purchase products and services from us, including equipment to fill the capacity on their existing Infinera DTN systems. We believe that the introduction of another vendor will impact the revenue we will receive from Level 3 beginning in the first half of 2010.

— 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!!

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