By Tess Stynes
Ciena Corp. said its fiscal first-quarter loss narrowed sharply
on stronger revenue.
The telecom-equipment company's revenue has continued to improve
as the optical gear market shows signs of increasing demand after
an extended lull. Ahead of the report, RBC Capital Markets said
Ciena has diversified its customer base and product offerings,
while network upgrades have helped boost orders.
Looking ahead, Ciena's recent strategic partnership with
Ericsson to jointly develop optical-networking gear may provide a
broader reach--especially with international wireless operators--as
well as strengthen relationships with existing customers.
For the period ended Jan. 31, Ciena reported a loss of $15.9
million, or 15 cents a share, compared with a year-earlier loss of
$47.3 million, or 47 cents a share. Excluding stock-based
compensation, year-earlier debt-extinguishment losses and other
items, adjusted earnings rose to 13 cents a share from 12 cents.
Analysts polled by Thomson Reuters expected a per-share profit of
six cents.
Revenue increased 18% to $533.7 million, in line with the
company's projection of $515 million to $545 million.
By segment, converged packet optical revenue jumped 39% to
$333.4 million, while software and services revenue increased 13%
to $51.7 million.
For the current quarter, Ciena forecast revenue of $540 million
to $570 million. Analysts expected $561 million.
Write to Tess Stynes at tess.stynes@wsj.com
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