Ciena shares sink after 3Q misses expectations
LINTHICUM, Md. (AP) — Shares of Ciena Corp. sank Thursday after the communications network equipment maker reported a higher-than-expected loss for the fiscal third quarter and issued an outlook that fell short of Wall Street expectations.
For the three months ended July 31, the Linthicum, Md., company said it lost $29.8 million, or 30 cents per share. That's an improvement from the loss of $31.5 million, or 33 cents per share, in the year-ago period.
Not including one-time items, however, the company said it lost 4 cents per share, which was wider than the loss of 2 cents per share analysts expected, according to FactSet.
The company also said it expects revenue of $455 million to $480 million for its fourth quarter, which was shy of the $500 million analysts expected.
CEO Gary Smith said Ciena is experiencing "the effects of ongoing macroeconomic challenges and slower-than-expected roll-outs of new design wins." But he noted that the company continues to gain market share and that its long-term prospects remain intact.
Total revenue for the third quarter was $474.1 million, up from $435.3 million and slightly ahead of the average analyst estimate of $473.9 million. But the total cost of goods rose 17 percent, and gross profit fell to $181.3 million, down from $184.9 million. Its net loss narrowed on lower operating expenses, including for research and development.
Shares of Ciena were down $2.84, or 17 percent, at $13.88 in morning trading. In the year to date, the stock is up nearly 15 percent.