Ciena Shares Sink On Unexpected, $53M Losses

Ciena Corp. (CIEN) shares dived more than 8 percent Thursday as investors reacted with dismay to the communications equipment maker’s first fiscal quarter earnings.

Ciena, which is slated to close on the $769 million Nortel Metro Ethernet Networks unit acquisition within the month, lost $53.3 million, compared to losses of $24.8 million in the year-ago quarter. Ciena attributed the unexpected numbers to delays in recording some companies’ sales. Ciena did not say which customers’ platform deployments accounted for the holdups.

At the same time, Ciena’s sales did rise 5 percent to $175.9 million as telecom customers bulked up their networks to accommodate ever-increasing bandwidth demand. That figure, though, was still smaller than Wall Street predicted. Analysts were looking for $184.6 million in sales, according to reports.

Yet, the Maryland-based manufacturer dished out some other bad news as well. It took a one-time, $27 million charge for the Nortel deal and said its current-quarter sales will come in between $185 million and $195 million. Wall Street was expecting $194 million in revenue for the current three-month period.

Ciena did say its forecasts do not include the Nortel deal. Guidance on that transaction is not likely to come until Ciena holds its investor day in April, analysts said, according to multiple reports.

The company’s shares had sunk 8.32 percent to $13.34 by 12:19 p.m. Eastern.

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