Ciena warns on revenue
1Q loss less than lowered target, but sales seen falling further.
February 21, 2002: 10:19 a.m. ET
|
NEW YORK (CNN/Money) - Ciena Inc. posted a fiscal first-quarter loss that was less than recently raised estimates on weaker-than-expected revenue, and warned that revenue in the current period will fall further than expected.
The warning sent Ciena (CIEN: down $0.50 to $8.20, Research, Estimates) shares down about 8 percent, in early trading Thursday.
The optical networking company said it lost $56.7 million, or 17 cents a share, excluding special items in the quarter ended Jan. 31. The company earned $54.8 million, or 18 cents a diluted share, on the same basis a year earlier.
The fourth-quarter loss was less than the consensus forecast of 20 cents by earnings tracker First Call, but that forecast stood at 11 cents a share before a Feb. 5 warning by the company that it would lose between 19 and 22 cents a share excluding special items. The company said the loss was smaller than its earlier warning because operating expenses were less than expected.
Revenue totaled $162.2 million, missing the First Call forecast of $164.6 million and well off of the $352 million a year earlier.
Ciena warned that it expects second-quarter revenue to fall to $110 million, well below the $148.5 million First Call forecast as well as the $425.4 million a year ago. The company said two major customers recently told it they may buy significantly less than originally expected.
"There continues to be a high level of uncertainty surrounding service providers' near-term spending," Ciena CEO Gary Smith said. The company did not give any specific earnings guidance for the second quarter.
Including special items, the company reported a net loss of $70.6 million, or 22 cents a share, compared with net income of $53.2 million, or 18 cents a diluted share, a year earlier. 
|
|
|
|
|
|
|
