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Infinera's Q2 Blues

Peer Pressure
Peer Pressure
Peer Pressure

2:30 PM -- So Infinera Corp. (Nasdaq: INFN) isn't invincible after all.

Just when you thought the company was immune to the quarterly lumpiness that affects telecom companies far and wide, there's Infinera posting lower guidance than Wall Street expected. (See Infinera Profits, But Gives Lower Forecast.)

In some ways, the company seems a victim of its own success. It had produced four consecutive quarters of sequential revenue growth, was cash flow positive, and consistently outperformed its own (and analyst) forecasts. While other telecom vendors such as Alcatel-Lucent (NYSE: ALU) and Nortel Networks Ltd. struggled, it continued to grow at a steady pace.

So it was maybe a little surprising when the company issued top-line guidance that was below analyst forecasts and a bit below its first quarter numbers.

Even so -- a 20 percent drop in its stock today seems a little harsh, doesn't it?

— Ryan Lawler, Reporter, Light Reading

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