Ciena gains sequentially in fiscal third quarter, guides upward for fourth quarter

Ciena Corp. (NASDAQ: CIEN) appears to be building momentum. The company reported revenues of $435.3 million for its fiscal third quarter ended July 31, 2011, an improvement of $17.4 million over the previous quarter. The company appears to expect such improvement to continue during the next three months, as it guided for even more revenue in its upcoming fourth fiscal quarter.

Ciena Corp. (NASDAQ: CIEN) appears to be building momentum. The company reported revenues of $435.3 million for its fiscal third quarter ended July 31, 2011, an improvement of $17.4 million over the previous quarter. The company appears to expect such improvement to continue during the next three months, as it guided for even more revenue in its upcoming fourth fiscal quarter.

Despite the revenue improvement, Ciena still reported a GAAP net loss of $31 million ($0.33 a share) for the fiscal third quarter. However, this improved on the year-ago quarter; Ciena experience a GAAP net loss of $109.9 million ($1.18 per common share) for the fiscal third quarter of 2010.

Non-GAAP net income for the fiscal third quarter 2011 was $8.3 million ($0.08 per common share) versus a non-GAAP net loss of $8 million ($0.09 per common share) in the same quarter of fiscal 2010.

Ciena also reported that 48% of its third quarter revenue came from customers outside of the United States. It had one customer who accounted for 17% of the quarter’s revenues.

Company management appears relatively optimistic about the company’s position. “Our third quarter results, which included a favorable product mix and reduced operating expense to achieve an as-adjusted operating profit, demonstrate our early progress in delivering additional operating leverage from the business,” said Gary Smith, president and CEO of Ciena. “Despite current macroeconomic headwinds that could cause the rate of market growth to be moderated, we believe that we are well-positioned to capitalize on the continued modernization of today's networks and to grow faster than the market.”

With this in mind, Smith forecasted fiscal fourth quarter 2011 revenue in the range of $440 to $460 million, with adjusted gross margin percentage in the low 40s range.

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