Ciena tightens up Q3 2010 losses, but remains cautious about Q4

Ciena (Nasdaq: CIEN) may have narrowed its Q3 losses, but with the global economy still in a fragile state, the company is being conservative about its Q4 revenue forecast.

The company forecast that fourth quarter revenue of $409.2 million, falling short of analysts' estimate of $423.9 million.

"We see increasing levels of customer activity and continued strength in the fundamental demand drivers of our business; however, we remain cautious in the face of continuing macroeconomic uncertainties," said Gary Smith, Ciena's CEO in a release. "We currently expect a sequential increase in our fiscal fourth quarter revenue of up to 5%, and expect as-adjusted gross margin to be in the low 40s range."

During the third quarter, Ciena lost $109.9 million, or $1.18 per common share, versus the $26.5 million, or $0.29 per common share, loss it saw in Q3 2009.

Despite the less than compelling Q4 outlook and Q3 losses, there were some bright spots. In particular, Ciena's purchase of Nortel's Metro Ethernet Networks (MEN) business has service and professional services helped double company revenue to $389.7 million.  

For more:
- see the earnings release here
- Reuters has this article

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