poor INFN

CEO Tom Fallon: “As expected, weak demand across much of our business in the third quarter led to financial results that were below our standards. While the revenue environment is likely to remain challenging in the near term, we are making continued progress towards delivering our next generation of products and increasing the cadence in which we will introduce step function technology improvements. I firmly believe that we have the team and the core technologies that will enable us to recover from our current challenges and ultimately return to delivering differentiated financial results.”

Sounds pretty darn desperate. Glad I didn’t hold on hoping that they’d beat their pitifully low guidance. Not only did sales drop 20%+ but costs were up almost 10%. INFN will be down double digits tomorrow.



To make things even worse, Google is halting the Google Fiber project. I assume they were a buyer of INFN products?

And on a related note, there is this Bloomberg headline.

Orders for U.S. Capital Goods Decline by Most Since February

this falls in line with what Fallon was saying on the call yesterday, basically money for CapEx has dried up. What troubles me is that every quarter we are treated to the same pronouncements, that demand for bandwidth is insatiable, and the future is bright with possibilities.
I think they should stop holding the conference call and just play this.