Despite being one of the few telecom gearmakers to post revenue growth in the first quarter, Ciena found itself on the wrong end of Wall Street expectations this morning.
The company's stock was hit hard, falling 9% after it posted net income of $38.4 million on sales of $621.5 million, a major improvement over losses suffered a year ago. (See Ciena Reports Sales Hike in Fiscal Q1 .)
Ciena Corp. (NYSE: CIEN)'s revenues were up 8.4%, but analysts had expected better. The Thomson Financial Network polling predicted 29 cents per share, or three cents more than Ciena actually made, on sales of $632.3 million.
In a year when many major telecom players are seeing revenues slide -- think Ericsson, Nokia, Cisco -- Ciena grew its revenues in every market except Latin America. That included a 3% bump in North American sales.
The company saw quarter-over-quarter revenue declines in its major product line, converged packet optical network platforms, however. Sales there fell almost 16% to $412.7 million from the fourth quarter of 2016.
— Carol Wilson, Editor-at-Large, Light Reading