Ciena tumbles on weak Q3 outlook
By Rex Crum, CBS.MarketWatch.com
Last Update: 11:35 AM ET May 22, 2003
LINTHICUM, Md. (CBS.MW) - Telecom equipment maker Ciena saw its shares fall more than 9 percent Thursday after delivering a grim third-quarter outlook that suggests more spending weakness in its sector.
Free! Sign up here to receive our Midday Market Report e-Newsletter!
INFORMATION FOR CIEN:
Create an alert for CIEN
Add CIEN to my portfolio
More cool charts on CIEN
Discuss CIEN
NEWS FOR CIEN
Updates, advisories and surprises
U.S. stocks climb on mild optimism
Barnes Group, GameStop, Roxio, and more
More news for CIEN
Quote & News Charts Financials Analysts Options SEC Filings
TRACK THESE TOPICS
My Portfolio Alerts
Company: Ciena Corporation Add
Create
Index: Nasdaq Composite Index Add
Create
Get Breaking News sent directly to your inbox
Create A Portfolio | Create An Alert
Ciena (CIEN: news, chart, profile) shares were down 47 cents to trade recently at $4.92, and were among the Nasdaq Composite Index's ($COMPQ: news, chart, profile) most-active with more than 11 million shares exchanged.
Ciena found itself in sellers' sights Thursday not so much for what it said about its recently completed second quarter, but its outlook for its current, third quarter.
The company expects third-quarter sales to be between $65 million and $75 million, or, potentially, more than $11 million less that the $76.4 million forecasted by analysts surveyed by Thomson First Call.
Ciena CEO Gary Smith acknowledged the business difficulties facing Ciena. "Our customers continue to exercise extreme spending caution, perpetuating the challenging telecom equipment environment," Smith said.
For its second quarter, Ciena posted a net loss of $75.5 million, or 17 cents a share. During the same period a year ago, Ciena lost $612 million, or $1.86 a share.
When one-time items were taken out of its earnings equation, Ciena posted a loss of $42 million, or 10 cents a share, to beat the estimates of Wall Street analysts who were looking for the company to lost 12 cents a share.
Revenue for the period ended April 30 came in at $73.5 million, down from $87 million a year ago, but above analysts' estimates of $72.4 million. |
