LR Index Stocks Pummeled
Leading the news today was Ciena Corp.'s (Nasdaq: CIEN) announcement that it would buy Cyras, a metro optical switch company, in a stock deal worth $2.6 billion (see Ciena To Buy Cyras for $2.6 Billion). Ciena’s stock closed the day at 73.19, down 23.19 or 24.06 percent, on concerns that the deal will dilute its value.
Also contributing to the sell-off was SBC Communications Inc.’s (NYSE: SBC) announcement that they would be adjusting down earnings estimates, adding to a list of companies that have done so.
The big losers today, in addition to Ciena, were Avici Systems Inc. (Nasdaq: AVCI; Frankfurt: BVC7), down 18.34 percent; Avanex Corp. (Nasdaq: AVNX), down 17.97 percent; Finisar Corp. (Nasdaq: FNSR) down 19.85 percent; New Focus Inc. (Nasdaq: NUFO), down 23.61 percent; Newport Corp. (Nasdaq: NEWP), down 20 percent; and Sycamore Networks Inc. (Nasdaq: SCMR), down 20.32 percent.
Foundry Networks Inc.'s (Nasdaq: FDRY) quarterly profit warning, issued after the market closed, did not bode well for the networking sector overall. General market fears will likely linger tomorrow.
-- Matt Malina, research associate, Light Reading http://www.lightreading.com