Longview

What: Shares of Internap (NASDAQ:INAP), a provider of Internet infrastructure services, collapsed on Friday after the company updated its guidance for the full year, cutting its expectations for revenue, adjusted EBITDA, and capital expenditures. At 1:40 Friday afternoon, the stock was down about 18%.

So what: One surefire way to disappoint investors is to slash previously announced guidance, and that's exactly what Internap has done. For the full year, Internap now expects revenue between $320 million and $325 million, down from a previous range of $331 million and $337 million. With 2014 revenue of $335 million, the chance of growth baked into the previous guidance has transformed into a revenue decline.

Adjusted EBITDA was previously guided to be between $87 million and $93 million for the full year, but Internap now expects adjusted EBITDA of $80 million to $85 million. Guidance for capital expenditures was also slashed, with the company now expecting total capex to be between $60 million and $70 million, down from a previous range of $70 million to $80 million.

Now what: Internap CEO Michael Ruffolo pointed to orders for the company's Managed Internet Route Optimizer being pushed into 2016 as the reason for this guidance cut: "While we have built a strong sales funnel for MIRO Controller, revenue contribution for 2015 will likely be lower than previously anticipated as orders are pushed into 2016 due to customer budget cycles. We remain on a path toward the generation of sustainable positive free cash flow, as early as the fourth quarter of 2015, driven by stable bookings despite headwinds from the strengthening US dollar."

Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.