Ciena's (Nasdaq: CIEN) fiscal Q1 sales up amidst losses and weak Q2 outlook

Ciena's (Nasdaq: CIEN) fiscal Q1 earnings got a boost from its acquisition of Nortel's Metro Ethernet Network (MEN) division, but that wasn't enough to offset wider losses and a second quarter outlook that fell below analyst's expectations.

Not surprisingly, this outlook drove Ciena's shares down 9 percent to $26.28 in Monday morning trading on the Nasdaq stock exchange.

Ciena's total Q4 revenue more than doubled to $433 million from $175.88 million in Q1 2010, surpassing analysts' $421.91 million forecast. On a sequential basis, revenues increase 4 percent from fiscal Q4 revenue of $417.6 million.

Two of its domestic U.S. customers, which are widely known to be AT&T (NYSE: T) and Verizon (NYSE: VZ), contributed 25 percent, or $108 million to Ciena's sales. International sales also continue to be strong. During the quarter, international sales accounted for 49 percent, or $213.3 million, of its first-quarter revenues.

But as much as the Nortel MEN revenue helped, back office integration issues prompted Ciena to forecast Q2 revenue of $415-$435 million. Analysts expected the company to report $438.5 million.

Ciena's Q4 net losses were $79.06 million or $0.84 per share, up from $53.33 million or $0.58 per share in Q1 2010. During the quarter, Ciena had to shell out $24.2 million to pay for acquisition and integration-related costs related to its Nortel MEN deal.

Gary Smith, Ciena's CEO said that "the effects of our back office integration activity, which--while extremely well-executed--resulted in some revenue acceleration into the first quarter and minor ERP-related supply chain constraints at the beginning of our second quarter."

For more:
- see the earnings release
- Reuters has this article
- see FierceTelecom's Q4 earnings page

Related articles:
Ciena's Nortel MEN purchase drives up Q4 revenue
Ciena appoints Infinera's Rick Dodd as VP of global marketing

Ciena tightens up Q3 2010 losses, but remains cautious about Q4
Ciena takes another step in integrating Nortel's MEN into its fold