Ciena Slumps on Q4 Outlook
In reporting its third-quarter results, Ciena noted it has "recently begun to experience order delays from many of our Tier One service provider customers, which we attribute to their guarded approach to capital expenditures given the uncertain macroeconomic environment."
While the vendor says it hasn't experienced any "project or order cancellations, sales cycles are lengthening and some deployments are slowing. As a result, we now expect fiscal fourth quarter revenue in a range of $190 to $210 million.”
That's a long way off the $263 million in revenues that Wall Street had forecast, and is even lower than the $216.2 million Ciena reported in last fiscal year's fourth quarter. (See Ciena's Q4 Beats the Street.)
Ciena's share price fell by $2.74, 15.7 percent, to $14.69 in pre-market trading Thursday morning.
In its fiscal third quarter, which ended July 31, Ciena generated revenues of $253.2 million and earnings after one-time charges of $39.8 million, or $0.37 per share, which was in line with analysts' expectations.
— Ray Le Maistre, International News Editor, Light Reading