CIEN: Ciena Shares Sharply Lower, Expects Six-Cent Charge - TheStreet

Fiber-optic company Ciena (CIEN) - Get Report said this morning that it expects to take a charge of 6 cents per share in its fiscal fourth quarter due to a reorganization by one of the company's European customers. After being halted for about an hour, the shares were recently off 12%.

An administration order, similar to filing for reorganization, has been issued against

iaxix Limited

, and Ciena estimates that up to $28.2 million in accounts receivable currently owed may not be collected. The

First Call/Thomson Financial

consensus estimate for fourth quarter earnings was 25 cents a share.

The impact of the charge on Ciena's earnings in the quarter is expected to be approximately 13 cents, or 6 cents on a post-split basis. Ciena previously announced a 2-for-1 split payable on Sept. 18. The company earned 19 cents per share in the previous quarter.

Trading in Ciena was halted on the Nasdaq at $227.88 prior to the release of the news.

Ciena's been one of the hottest Nasdaq stocks in recent weeks, due to the market's love affair with fiber optics. The stock closed at $148.69 on August 4, and has rocketed upward since then.