Ciena (CIEN) reported what appeared to be strong earnings. Revenue rose 37% from the quarter last year to $165 million. But, the sequential increase from the immediately previous quarter was only 3%. The company forecast sequential growth for the current quarter as low as 5%.
Ciena makes equipment for the telecom industry and its is the type of product that helps them build out "triple play" services with voice, broadband, and TV.
So, the market’s question is why Ciena, a company in an industry at the peak of its build-out, is growing so slowly. The company has not supplied an answer, but the stock is off 9% before the market, and that means Wall St. doesn’t think Ciena is getting its share of the boom.
Douglas A. McIntyre
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