Ciena's (Nasdaq: CIEN) Nortel MEN purchase drives up Q4 revenue

Ciena (Nasdaq: CIEN) ended its year on a decent note as it reported $417.6 million in fiscal Q4 revenue, a 7 percent sequential increase over fiscal Q3 2010 of $389.7 million.

A big contributor to its Q4 revenue figures was $255.6 million in revenue since completing its acquisition of Nortel's Metro Ethernet Networks business of Nortel (MEN) in March.

Although Ciena beat out its own previous Q4 forecast of $409.2 million, it missed analyst's estimates of $423.9 million in revenue for the fourth quarter.

Ciena's acquisition of Nortel's MEN unit also contributed to a rise in the company's fiscal 2010 year results. In 2010, the company reported $1.2 billion in fiscal year 2010 revenue, up from the $652.6 million for fiscal year 2009.

Gary Smith, president and CEO of Ciena, said in a release that "while current macroeconomic conditions are still causing some caution in customer spending, the continuing strength in the fundamental demand drivers of our business and progress on our integration gives us confidence in our ability to achieve our operating targets."

Ciena forecasts that Q1 2011 revenue will range from $410 million to $430 million, while adjusted gross margin will be in the low 40s range.

For more:
- see the release

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