Blood in the Streets for (JDSU) (OCLR) (OPLK) (CIEN) (INFN) After Finisar (FNSR) Earnings Warning

Shares of JDS Uniphase Corporation (Nasdaq:JDSU), Oclaro, Inc. (Nasdaq:OCLR), Oplink Communications Inc. (Nasdaq:OPLK), CIENA Corp. (Nasdaq:CIEN) and Infinera Corp. (Nasdaq:INFN) are getting crushed today on the weak earnings guidance of Finisar Corp. (Nasdaq:FNSR).

While the third quarter results of Finisar were in line with expectations, its fourth quarter earnings guidance of $0.31-$0.35 was so far below analyst estimates of $0.48 a share that it spoke of probably sector problems.

Finisar said, "the Company will be impacted by the full three months of the annual price negotiations with telecom customers that typically take effect on January 1, the 10-day long shutdown at certain customers for Chinese New Year in February, the adjustment of inventory levels at some telecom customers, particularly for products which had previously been on allocation and long lead times, including WSS and ROADM line cards, and a slowdown in business in China overall."

JDS Uniphase Corporation was trading at $22.31, falling $3.07, or 12.10 percent, as of 11:48 AM EST. Oclaro was at $13.86, dropping $2.76, or 16.61 percent. Infinera Corp. was at $8.15, down $0.20, or 2.40 percent, recovering some from earlier in the session. CIENA Corp. was trading at $24.75, losing $0.93, or 3.63 percent. Oplink Communications Inc. was down to $21.79, plunging $3.83, or 14.95 percent. Finisar was getting crushed at $25.67, down $14.37, or 35.89 percent.