July 27, 2012
The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics relating to their 10-Bagger portfolio.
Infinera (Nasdaq: INFN ) reported earnings. But its financial performance wasn't the real story. The real story was the progress of its next-generation technology. The company continues to see traction for its DTN-X product. It received orders from eight additional customers, bringing the total to 10. That's a great first step. With competition from Ciena and Alcatel-Lucent, the company has used aggressive pricing to snap up early market share, which they can use as evidence to attract larger customers down the road, such as Verizon or AT&T. The company did reduce the top of its revenue guidance for the second half of the year, citing uncertainty in the global economy, which can affect purchasing decisions. David believes the company is off to a great start and looks forward to learning about who the new customers are next quarter. As a long-term investor, David thinks the stock remains very attractive today as the company drives telecom into the next phase.
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