NEW YORK (TheStreet) -- Ciena (CIEN - Get Report) saw its shares tumble on Thursday after the wireless networking company forecast that sales for its October quarter would be lower than Wall Street estimates.
The Hanover, Md.-based company said fiscal third-quarter revenue rose 12% to $603.6 million. Ciena reported quarterly net income of $16.2 million, or 15 cents a share, a reversal from a year-earlier loss of $1.2 million or a penny a share, a year earlier. The company reported adjusted net income of $40.9 million, or 32 cents a share, compared to $26.2 million, or 23 cents a share, last year. Consensus estimates were calling for earnings of 29 cents on revenue of $600.8 million.
However, Ciena forecast revenue for its fiscal fourth quarter to be between $570 million and $610 million, lower than Wall Street estimates of $629 million, according to tallied estimates by Thomson Reuters.
Shares declined 8.2% to $18.78 at last check on volume that was more than double the company's three-month average daily trading volume of 3 million shares.Read More: Why Apple Is a Buy Because of Mobile Payments Here's what analysts said about Ciena. Jess Lubert, Wells Fargo Securities (Outperform; $18-$28 PT range) Ciena experienced healthy trends in the converged packet optical and packet networking business lines, which more than offset ongoing declines in legacy transport demand. Software and service revenue was also better than expected. While Ciena's top-line results once again appeared to benefit from strength in North America, with AT&T representing 21.6% of sales, the International business also experienced healthy growth, which we think is likely to continue into FY2015. We believe the weaker-than-expected outlook likely reflects project delays at several North American carriers (AT&T, Comcast and Verizon) due to M&A activity and SDN/NFV initiatives that may impact spending over the next several quarters. We continue to see value in Ciena shares as we believe the company remains well positioned to see ongoing 100G core upgrades, pending metro opportunities, and emerging web 2.0 builds drive another year of healthy growth and improved profitability in F2015. As a result, we believe weakness on Ciena's disappointing FQ4 outlook may present an attractive entry point in Ciena shares. Read More: How Cisco Intends to Capture the Changing IT Environment
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