Ciena Sinks as Revenue Forecast Disappoints

Ciena (CIEN Quote) narrowed its loss and improved its revenue in the fiscal third quarter, and the company disclosed plans for a new acquisition, saying it must get bigger in order to compete. But the suggestion that revenue could decline sequentially had investors selling the networker's stock in premarket trading.

For the quarter ended July 31, revenue totaled $68.5 million, an increase of 37% from $50 milllion in the same period a year ago. When calculated using generally accepted accounting principles, Ciena lost $88.9 million, or 20 cents a share. Excluding items, the company would have lost 9 cents a share. Ciena lost $160 million, or 42 cents a share, last year.

The company projected that fourth-quarter revenue will come in anywhere from 5% below to 5% above its third-quarter top line, depending on the timing of certain orders. ...