Ciena Q4 Loss Widens, Misses View, But Revenues Top

(RTTNews) - Network specialist Ciena Corp. (CIEN) reported Thursday a loss for the fourth quarter that widened from last year, despite revenue growth, reflecting lower gross margins.

Adjusted loss per share missed analysts' expectations, while quarterly revenues topped their estimates. The company also provided revenue guidance for the first quarter, with the upper end in line with Street view.

Following the announcement, the company's stock is down three percent in pre-market trading.

The Hanover, Maryland-based telecommunications networking equipment maker reported a net loss of $30.70 million or $0.29 per share for the fourth quarter, wider than $9.80 million or $0.09 per share in the prior-year quarter.

Excluding items, adjusted net loss for the quarter was $8.17 million, or $0.08 per share, compared to adjusted net income of $18.26 million or $0.16 per share in the year-ago quarter.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 1.3 percent to $591.96 million from $583.39 million in the same quarter last year, and topped twenty Wall Street analysts' consensus estimate of $589.44 million.

The company noted that non-U.S. customers contributed 47.8 percent of the revenues, and one 10 percent-plus customer represented a total of 12.2 percent of quarterly revenue.

Gross margin for the quarter contracted 230 basis points to 37.4 percent from a year ago, and adjusted gross margin declined 290 basis points to 37.9 percent from last year.

For fiscal 2014, the company reported a net loss of $40.64 million or $0.38 per share, narrower than $85.43 million or $0.83 per share in the prior year.

Excluding items, adjusted net income for the year was $65.83 million or $0.59 per share, compared to $58.98 million or $0.54 per share in the year ago. Analysts expected the company to report earnings of $0.76 per share for fiscal 2014.

Net revenues for the full year grew 10 percent to $2.29 billion from $2.08 billion in the previous year. Street was looking for full-year 2014 revenues of $2.29 billion.

"We delivered strong revenue growth and improved profitability in fiscal 2014 as we benefited from a more diversified customer base and the strong alignment of our solutions with the increasing on-demand needs of our customer," President and CEO Gary Smith said in a statement.

Looking ahead to the first quarter of fiscal 2015, Ciena expects revenues in a range of $540 million to $570 million and adjusted gross margin percentage in the low 40s range. Analysts expect the company to report revenues of $566.58 million for the quarter.

"As we continue to expand Ciena's role and reach, we are well positioned to drive continued growth and increased profitability in 2015," Smith added.

CIEN closed Wednesday's regular trading session at $16.96, down $0.63 on a volume of 3.54 million shares. In the past 52-week period, the stock has been trading in a range of $13.77 to $27.16.