Ciena's New Look Gets a Once-Over

Investors awaiting the next twist in 2003's great tech disconnect should tune in for tomorrow's briefing with Ciena (CIEN Quote).

The Linthicum, Md., networking shop has been a prime beneficiary of Wall Street's renewed thirst for the high-risk growth plays of yesteryear. Ciena shares have surged 59% off their spring low, driven in large measure by the assumption that a reviving economy will at long last free corporate America to resume spending on communications gear. The company is due to post fiscal fourth-quarter results Thursday morning.

But some tech watchers warn that Ciena's performance has yet to live up to its surging stock, and they see little sign that it will. Demand remains soft for the optical gear at the heart of Ciena's product line. And observers doubt that even an improving economy will boost sales of other products enough to drown out the sputtering sound at the company's core. ...