Ciena (NASDAQ:CIEN, news, filings) followed up its upbeat fiscal Q2 report with a more muted fiscal Q3 report this morning. Revenues came in at $474.1M, toward the upper end of guidance and a hair above analyst expectations, while adjusted loss per share of $0.04 was slightly below expectations. It's probably the Q4 revenue guidance that will attract the most eyes though, coming in light. Here's a quick table in some context.
|$ in millions||FQ3/11||FQ4/12||FQ1/12||FQ2/12||FQ3/12||FQ4/12(guidance)|
|-Carrier Ethernet Solutions||40.5||28.8||21.9||30.6||31.3|
|-Software and Services||87.6||89.3||85.1||98.0||106.5|
|Adj. OPEX||175.2||180.8||175.4||172.9||175.6||low 180s|
Sequential growth in packet-optical switching and software/services were not quite enough to offset the lower transport number. On the other hand, opex remained below $180M. Guidance for revenue of $455-480M in fiscal Q4 was below the $499.5M composite analyst estimate on Yahoo Finance.
Ciena blamed the lack of fireworks on the sluggish economy. According to CEO Gary Smith:
“We are experiencing the effects of ongoing macroeconomic challenges and slower than expected roll-outs of new design wins. However, our approach to the market is working, our OPn architecture vision is gaining traction with customers globally, and our view of the long-term opportunity is unchanged.”
The stock is down in premarket trading, we'll see how the day goes though.
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