Telecommunications equipment maker Ciena Corp on August 31 reported that a narrower quarterly loss, as phone companies upgraded their networks to handle growing Internet and video traffic. Ciena also said its board approved a one-for-seven reverse share split effective 5 pm on September 22.
Ciena posted a net loss of $4.3 million, or 1 cent per share, for the fiscal third quarter ended July 31, compared with a loss of $51.0 million, or 9 cents per share, in the same quarter a year earlier.
Revenue rose to $152.5 million, up 38 percent from $110.5 million in the year-ago quarter. Sequentially, revenue rose 16.3 percent. Excluding one time items such as share-based compensation, the company said it made a profit of 2 cents per share. Analysts had expected net profit before items of 1 cent per share, according to Reuters Estimates.
Ciena, which counts the biggest US phone company AT&T Inc among its customers, said demand for its products was led by service providers and other businesses upgrading their infrastructure to Web-based systems.
Ciena CEO and President Gary Smith said in a statement that the company's fiscal fourth quarter revenue will likely "trend upward sequentially by as much as 5 percent" from the third quarter.
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