beat analyst expectations by a penny, posting a second-quarter pro forma net loss of $6.5 million, or 10 cents a share, compared with a loss of $4.1 million, or 6 cents a share, in the year ago period. Analysts had been expecting a loss of 11 cents, according to Thomson Financial/First Call.

Under generally accepted accounting principles, the company lost $18.8 million, or 29 cents a share, compared with $11.3 million, or 20 cents a share, in the year-ago quarter.

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Revenue for the quarter was $8.3 million, down from $47.9 million in the second quarter of 2001.

The photonic processor company said volatility and uncertainty remain high and forecast a third-quarter pro forma loss of 12 cents a share on revenue of $9 million to $10 million. Analysts are expecting an 11-cent loss.

Shares of Avanex recently were trading up 14.9% to $5 in Instinet premarket action after closing at $4.35 Wednesday.