Ciena Q3 Results Top Estimates, But Guides Q4 Revenue Below View

(RTTNews) - Network specialist Ciena Corp. (CIEN) Thursday reported profit for the third quarter, compared to a loss last year, amid higher revenues. Both earnings and revenues topped Wall Street estimates. However, the firm sees fourth-quarter revenues below Street view, sending the stock down by over 12 percent in pre-market trading.

The company reported net income of $16.16 million or $0.15 per share, compared to a loss of $1.23 million or $0.01 per share last year.

Adjusted net income was $40.9 million or $0.32 per share, while it totaled $26.2 million or $0.23 per share in the previous year.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.29 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue increased to $603.56 million from $538.36 million last year. Wall Street expected revenues of $600.81 million for the quarter. Gross margin improved to 43.7 percent from 42.4 percent last year.

Converged Packet Optical revenues increased to $382 million from last year's $302 million, while Packet Networking revenues improved to $69.5 million from $61.6 million.

In the Software and Services segment, revenue advanced to $121.1 million from $108.6 million. However, Optical Transport revenues fell to $31 million from $66.2 million last year.

Ciena said non-U.S. customers contributed 39 percent of total revenue. One customer accounted for more than 10 percent of revenue and represented 21.6 percent of total revenue.

Looking ahead, Ciena said it expects fourth-quarter to be impacted by several significant variables that contribute to a broader range of potential outcomes for revenue and gross margin than typically expected.

For the fourth quarter, the company expects revenue in the range of $570 million to $610 million, and sees adjusted gross margin in the high 30s to low 40s percent range. Wall Street expect revenues of $628.88 million for the fourth quarter.

CIEN closed up 1.5 percent at $20.46 on Wednesday, but declined 12.1 percent in pre-market activity.