Infinera stock plummets after earnings show declining sales
Infinera Corp. shares plunged more than 20% in after-hours trading Tuesday after the company reported declining sales ahead of a big merger. The optical-networking company recently closed its acquisition of Coriant, and Chief Executive Tom Fallon admitted in Tuesday's announcement that "we have experienced a spending pause from certain customers as they evaluate the combined company." Infinera reported a loss of $32.6 million, or 21 cents a share, on sales of $200.4 million, down from $208.2 million a year ago. After adjusting for stock-based compensation, Infinera claimed a loss of 4 cents a share, worse than an adjusted loss of a penny a share last year in the same quarter. Analysts on average expected a loss of 5 cents a share on revenue of $210 million. Infinera projected that the addition of Coriant will push revenue higher than $300 million in the fourth quarter, but also projected much bigger losses, with adjusted fourth-quarter losses expected to be 26 cents to 30 cents a share. Shares had already declined nearly 30% since the Coriant acquisition was announced, and plunged more than 20% in Tuesday's extended session, when shares were trading for less than $5, a level Infinera stock has not moved below since 2012. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.