NEW YORK ( TheStreet) -- Ciena ( CIEN) got stung by the same spending slowdown that has troubled networking gear peers like Cisco ( CSCO). The Lithicum, Md. telco equipment maker missed earnings and sales targets that it had lowered in March, and put its third quarter forecast below Wall Street expectations sending shares tumbling 11% early Wednesday.
Ciena Corp. headquarters
Ciena's role as a specialist in optical networking, selling gear that expands capacity on phone networks, was thought to be less at risk for slumping demand as carriers pinch pennies. But as Cisco has shown, the spending cuts have been broad based, and likely to affect all players in the industry including router rival Juniper. Ciena posted an adjusted net loss of $22.4 million or 24 cents a share, nearly double the deficit of $11.7 million or 13 cents a share in the year-ago period. Analysts had expected Ciena to trim its losses to 11 cents a share. Sales for its fiscal second quarter ended April 30 were $417.9 million, analysts were looking for $428.1 million in sales. Sales in the year-ago quarter were $253.5 million, before the company acquired Nortel's networking business. Looking ahead, Ciena says it expects sales to be about $445 million. Analysts had been looking for $456.4 million in revenue for the fiscal third quarter ending in July. "Having successfully completed all of our critical integration milestones, we now have a strong foundation to optimize the business and gain additional operating leverage as we drive toward sustained profitability," CEO Gary Smith said in a press release Wednesday. Investors weren't very optimistic. Ciena shares were down $3.14, or 13%, to $21.07 in premarket trading Wednesday. --Written by Scott Moritz in New York. To contact this writer, click here: Scott Moritz, or email: email@example.com. Follow Scott on Twitter at MoritzDispatch