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Updated from 5:34 p.m. ET to include Finisar, other companies, latest prices
NEW YORK (
Netflix(NFLX - Get Report) shares tumbled late Thursday after Starz announced it's ended contract renewal discussions with the high-flying DVD rental and content streaming company.
The stock was last quoted at $213.03, down 8.7%, on volume of around 520,000, according to
"Starz Entertainment has ended contract renewal negotiations with Netflix," said Chris Albrecht, the company's president and CEO, in a statement. "When the agreement expires on February 28, 2012, Starz will cease to distribute its content on the Netflix streaming platform."
Albrecht continued: "This decision is a result of our strategy to protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content. With our current studio rights and growing original programming presence, the network is in an excellent position to evaluate new opportunities and expand its overall business."
Netflix, which recently embarked on a controversial change in its pricing structure, has yet to issue its own statement on the news.
Based on Thursday's regular session close at $233.27, Netflix shares were up more than 30% so far in 2011, although they've dropped significantly since hitting a 52-week high of $304.79 on July 13.
Finisar(FNSR - Get Report) jumped late Thursday after the optical communications equipment maker
topped its earnings forecast for its latest quarter by keeping a lid on operating expenses.
The stock rose nearly 10% in extended action to $20.39 on volume of more than 800,000.
The Sunnyvale, Calif.-based company reported a non-GAAP profit of $19.5 million, or 21 cents a share, for the three months ended in July on revenue of $228.2 million. The average estimate of analysts polled by Thomson Reuters was for earnings of 18 cents a share in the quarter on revenue of $228.4 million.
Finisar had projected earnings of 16 to 20 cents a share in its fiscal first quarter. The company said gross margins came in at 32.1%, above its expected range of 30.7% to 31.7%.
Other optical networkers were also active in the after-hours session with
JDS Uniphase(JDSU) rising 2.5% to $13.30 on volume of more than 600,000; and
Oclaro(OCLR - Get Report), adding 6.5% to $4.45 on volume of more than 50,000.