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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: James Fulop who wrote (8922)	5/19/2000 12:03:00 PM
From: Boplicity	Read Replies (2) \| Respond to of 12623

Ciena Shares Fall on Cut to New Product Sales Forecast, Costs Linthicum, Maryland, May 19 (Bloomberg) -- Ciena Corp. shares fell as much as 11 percent after the maker of equipment to boost capacity on fiber-optic networks said it expects to sell fewer new products and warned it may have to pay more for parts. The shares fell 12 3/16 to 125 1/8 in late morning trading after dropping to 122 3/4. Ciena had risen 139 percent this year. Chief Executive Pat Nettles said Ciena no longer expects to sell $50 million to $100 million of two new products this fiscal year. The company now expects no sales from one and less than $50 million from the other. Ciena had to pay more for electronic parts in the recent quarter and could face similar pressure on fiber-optic components in the future, Nettles said. ``New product launches are important,'' said Nicholas Roe- Ely, manager of the Tilney U.S. Mid Cap Fund at Tilney Investment Management in Liverpool, U.K. ``For the first time, they're alluding to potential problems or products that aren't selling.'' Roe-Ely said he doesn't plan to sell any of the Ciena shares he runs. Nettles said on a conference call yesterday that he expects Ciena to ``slightly outperform'' profit estimates in Linthicum, Maryland-based the company's third and fourth quarters. Ciena had been expected to earn 16 cents a share in the third quarter and 22 cents in the fourth, the average estimates of analysts in a First Call/Thomson Financial poll. It had profit of $18.4 million, or 12 cents, in the second quarter ended April 30. Sales will rise from the second to the third quarters, though not as much as the 22 percent from the first to the second quarters, Nettles said. Sales in the recent period were $185.7 million, a 66 percent surge from the year-ago period.