GO
Loading...

Enter multiple symbols separated by commas

Ciena Earnings Beat Expectations

Communications equipment maker Ciena Corp. reported a better-than-expected quarterly profit on sharply higher revenue and lower expenses, sending its shares as much as 10% higher.

The Maryland based company also gave first-quarter profit outlook in a range that outpaced consensus expectations.

The company posted a net profit of $13.1 million, or 14 cents a share, in the fiscal fourth quarter ending Oct. 31, compared with a net loss of $252.9 million, or $3.06 a share, a year earlier, when it booked an impairment charge for goodwill and other assets of $222.3 million.

Excluding items, Ciena, which makes equipment to help move data over fiber-optic networks, posted a profit of 16 cents a share, beating the average Wall Street estimate of 12 cents a share, according to Reuters Estimates.

Revenue rose 35.3% to $160 million, matching estimates.

"We believe there was some expectation (financial results) could come in light," Morgan Keegan & Co. analyst Simon Leopold said. "Several customers including BT and Sprint were better customers in the quarter, offsetting weakness in traditional baby bells AT&T, BellSouth and Verizon."

Keegan said Ciena spent less on research and development, which was $26.6 million, in its fiscal fourth quarter than he expected. Keegan expected the firm to spend $27.1 million.

Total operating expense for the fourth quarter fell to $68.9 million from $301.8 million a year ago, Ciena said.

Looking ahead, the company said it expected revenue to rise by a low single-digit percentage rate in the first quarter of 2007.

Ciena expects first-quarter net profit per share to come in at between 9 cents and 14 cents. Excluding items, profit per share is expected to reach 19 cents to 24 cents. Consensus expectations were that the company would post a first-quarter profit of 19 cents.

"Based on our current order pipeline we see growth improving during the balance of the year," Ciena said in a statement.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.