Ciena revenues rise to $583.M, but profits fall below expectations
Ciena (Nasdaq: CIEN) reported that revenues for its fiscal fourth quarter to October were $583.4 million, up from $465.5 million year-over-year, beating its outlook of $550-$580 million. The vendor also narrowed its net loss to $9.8 million or 9 cents a share, from $38.8 million or 39 cents per share a year ago.
A key concern with Ciena's Q4 results was its profit. Ciena reported a profit of 16 cents a share, up from a loss of seven cents a share last year. However, it was below analyst forecasts of 24 cents a share.
From a segment perspective, the converged packet optical segment was the clear star where revenue rose 47 percent to $350.9 million. Likewise, software and services revenue rose 9.6 percent to $118.7 million.
A key challenge that Ciena and other optical vendors face is slower spending from large telcos such as AT&T (NYSE: T) and Verizon (NYSE: VZ), both of which are not expected to make large capital budget increases this year.
Ciena also said on Thursday it would transfer its stock listing to the New York Stock Exchange. It will begin trading on the NYSE from Dec. 23.
The vendor has forecast revenues of $515 to $545 million. Analysts polled Thomson Reuters I/B/E/S expects revenues of $537.7 million.
Shares of Ciena were listed at $22.12, down 78 cents, or 3.41 percent in Thursday morning trading on the Nasdaq stock exchange.
- see the earnings release
- Reuters has this article
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