Feeds

Infinera grabs top tech IPO of the year

Optical bull

The Essential Guide to IT Transformation

Shares of Infinera gained 52 per cent during its first trading day, giving the optical-networking gear maker the best tech IPO debut in 2007.

The Sunnyvale-based company's stock closed yesterday at $19.71, a 51.6 per cent leap from the $13 per share initial public offering price. Approximately 14 million shares were sold during the trading day.

Infinera Logo

Infinera was founded in 2000 by former Ciena Corp. executive Jagdeep Singh. It claims to be the first company to develop a commercially deployed computer chip with optical networking components. The optical gear transmits and receives data at 100 GB/s using light, rather than electricity used in traditional circuits.

Despite company sales surging nearly 17-fold in the first quarter to $49.2m, Infinera has yet to achieve profitability. The company posted a $89.9m loss last year and was $19.8m in the red during the first quarter of 2007.

A small number of companies account for most of Infinera's sales. Internet backbone firm Level 3 made up 57 per cent of Infinera's revenue during the first quarter and about 75 per cent in 2006.

Infinera's competitors in the optical communications market include Alcatel-Lucent, Ciena, Cisco, Huawei and Nortel.

According to Infinera's SEC filing, the company plans to use proceeds from the sale for repayment of credit facilities and possible acquisitions. ®

The Essential Guide to IT Transformation

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
VMware builds product executables on 50 Mac Minis
And goes to the Genius Bar for support
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
Forrester says Australia, not China, is next boom market for cloud
It's cloudy but fine down under, analyst says
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.