Ciena Sees Revenue Improvement

Its third-quarter loss narrows.
Author:
Publish date:

Ciena's

(CIEN) - Get Report

third-quarter loss narrowed from a year ago and the company predicted revenue in the current period will beat forecasts.

The network-equipment maker lost $51 million, or 9 cents a share, in the quarter ended July 31, compared with a loss of $141.5 million, or 25 cents a share, a year ago. The narrowed loss reflected higher sales and an 8-percentage-point improvement in gross margin to 34.1% in the quarter.

Revenue for the third quarter totaled $110.5 million, up 6.4% from the second quarter and 46.2% from a year ago. Ciena's product revenue was $97.5 million in the latest quarter, up from $64.3 million a year ago, while services revenue was $13.0 million in the latest quarter, up from $11.2 million a year ago.

Ciena had a pro forma loss of $21.6 million, or 4 cents a share, in the 2005 third quarter. Analysts had been forecasting a loss of 4 cents a share in the quarter on sales of $109.9 million. The company expects to post revenue of about $116.3 million for the fourth quarter, above the $113.9 million consensus.

Ciena's stock rose 4 cents to $2.29 on Instinet.