From Jefferies report:

"INFINERA TALKS TECHNOLOGY... We attended Infinera's investor briefing. The meeting focused primarily on the company's
recent announcement of the ILS2, a new line system designed for
the ultra long-haul market that utilizes passive PICs. Separately,
Infinera attributed the recent Deutsche Telecom win to two primary
factors; 1) unique features of the DTN architecture (quick circuit
provisioning, flexibility, future-proof technology); and 2) the use of
PIC chips. Lastly, the discussion also hit upon the recent downward
revision in expectations. The company downplayed the role of Level
3 as a driver behind the change in guidance. We believe that the
recent difficulties at XO Communications where the primary reason
for cut in 2H'08 numbers. We continue to rate Infinera shares a
Buy."