Ciena Shows Some Muscle
Today’s Daily Angle comes from Wikinvest Wire member Rob Powell of TelecomRamblings.com. You can read the full article on Rob’s blog.
Flash Player 9 or higher is required to view the chart Click here to download Flash Player nowNetwork equipment provider Ciena (CIEN) reported its fiscal third quarter earnings yesterday morning, providing the latest update on the state of the economy in telecom. The equipment providers have taken the brunt of the recession, as carriers have cut back on the capex that has been their lifeblood. But this quarter, Ciena finally managed to turn the tide with sequential growth with revenues of $164.8M from $144.2M last quarter. That’s really quite decent, I think analysts were only looking (hoping) for the low 150’s. Adjusted net loss of $0.05 was also better than anyone seems to have expected.
Nevertheless, the company remains cautious about the future, offering guidance for revenue at similar levels in the fiscal fourth quarter. That shouldn’t surprise anyone, the worst thing they could do right now would be to overpromise, and fortunes in this sector can turn on a dime. It is amazing just how sensitive equipment stocks are to the economy, Ciena’s quarterly revenues this time last year were some $253M, just as the bottom started to fall out.
