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Infinera shares shed a third of their value after dismal sales forecast

Infinera shares lost a third of their value on Thursday after the company said it expects current-quarter sales to come in lower than Wall Street had predicted.

On a Wednesday earnings call, the company forecast third-quarter sales between $180 million and $190 million, well below analyst predictions of about $273 million, according to a Thomson Reuters consensus estimate.

While the company posted a beat on the top and bottom line, CEO Tom Fallon said in a statement that "demand is softening in certain areas of our business and we face a difficult near-term revenue outlook."

Infinera posted earnings of 21 cents a share on revenues of $259 million. Analysts had expected the company to report earnings of 18 cents on $255.8 million in revenue, according to a Thomson Reuters consensus estimate.

Prior to the earnings report, Infinera's stock had fallen nearly 31 percent this year.