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Avanex Misses

It remains intent on getting to breakeven.

Avanex (AVNX) came up a little short on fiscal third quarter sales and guided down for the fourth.

The Fremont, Calif., optical networking shop posted an adjusted loss of $3 million, or a penny a share, for the quarter ended in March. Those numbers compare with pro forma losses of $3.5 million, or 2 cents a share, in the prior quarter and $8.9 million, or 6 cents a share, a year ago.

Sales for the most recent quarter were $55.1 million, down slightly from $55.6 million in the prior quarter and $40.1 million in the year-ago period.

Analysts were looking for an adjusted loss of a penny on $56 million in revenue, according to Reuters Research.

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"I am very pleased with our performance this quarter," said CEO Jo Major in a press release Thursday. "Following an exceptionally strong growth quarter, we maintained our revenue level although it was impacted by annual pricing negotiations."

On a pro forma pre tax and depreciation basis, Major says the reaching "breakeven no later than the September quarter remains our top priority."

Looking ahead, Avanex is expecting fourth quarter sales somewhere between $47.0 million and $52.0 million. Analysts had expected revenue to remain flat with fiscal third quarter levels at $56 million.

Avanex shares fell 3 cents to $1.62 in after hours trading Thursday.