Ciena (Nasdaq: CIEN) had a bit of a lumpy fiscal Q3 as earnings rose almost 12 percent to $435.3 million, but did not meet financial analysts' $443.9 million forecast.
Despite what were initially disappointing results, Ciena's cost cutting moves helped drive up its margins. As a result, Ciena's shares rose 4 percent in premarket trading yesterday.
During the third quarter, Ciena narrowed its loss to $31.5 million, or 33 cents a share, from $109.9 million, or $1.18 a share, in the same quarter last year.
The vendor also earned 8 cents a share, which contrast analyst's 8 cents a share loss estimate.
"Our third quarter results, which included a favorable product mix and reduced operating expense to achieve an as-adjusted operating profit, demonstrate our early progress in delivering additional operating leverage from the business," said Gary Smith, president and CEO of Ciena in the earnings release.
Similar to its Q3 outlook, Ciena's Q4 revenue forecast falls below analyst expectations. It has forecast Q4 revenue of $440-$460 million, much lower than analysts' $474.3 million forecast.
- see the release
- Reuters has this article
Earnings summary: Wireline in the second quarter 2011
Ciena's stock takes a hit from slower Q2 sales and a weak Q3 outlook
Ciena's Canada subsidiary gets $25 million grant from Ontario, Canada
Ciena appoints Infinera's Rick Dodd as VP of global marketing
Ciena's (Nasdaq: CIEN) Nortel MEN purchase drives up Q4 revenue