Ciena Ramps in Q3, Dampens Q4 Expectations
Ciena has reported fiscal third-quarter revenues of $603.6 million and adjusted (non-GAAP) earnings of $0.32 per share for the quarter ended July 31, slightly exceeding Wall Street's expectations but coming within its forecast range. (See Ciena Poised for Strong Quarter.)
"Our outstanding third quarter performance demonstrates our ability to grow profitability and outperform the market," noted CEO Gary Smith in a prepared earnings statement. "As we expand our addressable market by targeting high-growth, high-value segments, we are confident in our opportunity to grow the business and drive additional operating leverage in 2015."
But financial analysts expecting the optical and Carrier Ethernet transport equipment vendor's momentum to continue in the current (fiscal fourth) quarter will have to revise their spreadsheets, as Ciena Corp. (NYSE: CIEN) warned that its financials will "be impacted by several significant variables that contribute to a broader range of potential outcomes for both revenue and gross margin than typically expected."
As a result, Ciena expects its fiscal fourth-quarter revenues to be in the range of $570 million to $610 million, compared with the near $629 million that Wall Street had, on average, anticipated.
That tempered expectation hit Ciena's stock in pre-market trading Thursday, as despite the positive third-quarter numbers its share price lost 12% of its value to dip to $17.99.
— Ray Le Maistre, , Editor-in-Chief, Light Reading