Ciena hit its numbers easily enough this morning, but the market doesn't seem to like its guidance for the company's fiscal Q4. They've had a series of strong reports, I suppose it was inevitable that the bar would be raised too high. Here is a quick summary in some context:
|$ in millions||FQ3/13||FQ4/13||FQ1/14||FQ2/14||FQ3/14||FQ4/14
|-Software and Services||108.6||118.7||108.5||107.1||121.1|
|Adj. GM%||43.6%||40.8||43.4%||41.3%||44.3%||high 30%s to low 40%s|
Revenues of $603.6M were within the guided range and a touch higher than analyst estimates, while adjusted earnings per share of $0.32 were a few pennies above projections as well.
But the street was looking for a big fiscal Q4 with revenues in the $629M range, a number Ciena's guidance of $570-610M fell rather short of. According to the PR, fiscal Q4 will be "impacted by several significant variables that contribute to a broader range of potential outcomes for both revenue and gross margin than typically expected." That's not very specific so I suppose we'll have to wait for the call to get a bit more color.
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