CIENA Corporation reported its results for the first quarter. Ciena is a provider of communications networking equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic.
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CIENA Earnings Cheat Sheet for the First Quarter
Results: Loss narrowed to $47.7 million (loss of 49 cents per diluted share) from $79.1 million (loss of 84 cents per share) in the same quarter a year earlier.
Revenue: Fell 3.8% to $416.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: CIENA Corporation reported an adjusted net loss of 17 cents per share. By that measure, the company fell in line with the mean analyst estimate of a loss of 17 cents per share. Analysts were expecting revenue of $417.3 million.
Quoting Management: “Our first quarter revenue reflects the combined effects of seasonality and longer customer deployment and revenue recognition cycles as a result of our greater mix of international and solutions-oriented sales,” said Gary Smith, president and CEO of Ciena. “However, our first quarter revenue does not reflect the underlying strength of the business and ongoing customer demand. We expect sequential revenue growth in the fiscal second quarter, and we anticipate that our operating results for the second half of fiscal 2012 will be stronger than the first half.”
A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the first quarter of the last fiscal year, which saw revenue rise more than twofold.
The company met estimates last quarter after falling short of forecasts in the previous quarter with a loss of -7 cents versus a mean estimate of a loss of 5 cents per share.
The company’s cost of sales slipped to $248.9 million, a dip of 61.1% from a year ago. Last quarter, cost of sales was 59.7% of revenue versus 61.1% a year earlier.
Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the second quarter is now a loss of 10 cents per share, down from a profit of 7 cents ninety days ago. Over the past ninety days, the average estimate for the fiscal year has fallen from 44 cents per share to a loss of 9 cents.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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- CIENA Corporation