Telecom equipment/component stocks sell off following Calix warning

Calix's Q4 warning, which has come in the wake of warnings (I, II) from fellow telecom equipment suppliers Cyan (CYNI -2.4%) and Procera (PKT -2.6%), has sparked a general selloff in telecom equipment and component/chip names. A Deutsche downgrade of Alcatel-Lucent, one of the best-performing names in the space in 2013, could also be playing a role.

Calix, Cyan, and Procera all have considerable exposure to U.S. carriers not named AT&T or Verizon. While Calix didn't mention which region(s) are responsible for its warning, Cyan blamed an 88% Q/Q drop in sales to U.S. telco/top customer Windstream, and Procera blamed soft demand from U.S. cable providers.

Notable decliners: CSCO -1.1% JDSU -5.2%. ADTN -5.1% (competes with Calix). FNSR -4.2% (just announced an acquisition). INFN -2.9%. AMCC -2.5%. CIEN -2.4%. BSFT -6.1%. SONS -2.1%.

The group sold off a month ago after Cisco cut its long-term growth outlook.

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Comments (2)
  • Philip Marlowe
    , contributor
    Comments (1625) | Send Message
    Funny thing is UBNT is also selling off, despite the fact that it is not really a telecom stock. This is a good time to get into UBNT if you are not already in.
    9 Jan 2014, 01:03 PM Reply Like
  • Nettligent
    , contributor
    Comments (1346) | Send Message
    ALU is the only best candidate for 2014-2017 in telecom market segment.
    9 Jan 2014, 02:31 PM Reply Like
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