Street on fence over Ciena earnings
Telecom products firm beats view on lower revenue
By Janet Haney, CBS MarketWatch
Last Update: 7:37 PM ET Feb 18, 1999 Movers & Shakers
Silicon Stocks
LINTHICUM, Md. (CBS.MW) -- Wall Street may write mixed reviews for Ciena stock Friday as the company beat first-quarter estimates but reported a decrease in revenue.
Ciena, a maker of telecommunications networks products, said its first-quarter net income was $2.2 million, or 2 cents a share. The median estimate from analysts surveyed by First Call expected Ciena (CIEN) to lose a penny in the period.
In the year-ago quarter, Ciena said its net income was $39.7 million, or 37 cents per share.
Revenue was $100.4 million, a drop from the $145.1 million reported a year earlier. See press release.
The Linthicum, Md.-based company said revenue reflects use from 50 customers for its Ciena services and Alta unit, while 13 optical transport customers also contributed to revenue.
Looking forward, Patrick Nettles, president and CEO, said, "It's becoming clear that the power and flexibility enabled by optics is destined to push out from the core of the network and Ciena intends to be a driving force behind that push. Demand for optical networking equipment continues to appear robust, fueled in part by the spreading acceptance and adoption of Ciena's vision of direct optical transport of data-centric [Internet protocol] or ATM traffic."
"But based on visibility that remains limited beyond the current quarter, we continue to encourage conservative expectations," he concluded.
Ciena stock closed down 1 7/16 to 20 7/8, ahead of the news.
|
