Telecom & Wireless
Ciena Echoes Telecom & Data Slowdown (CIEN, JDSU)
Published:
Last Updated:
Ciena Corporation (NASDAQ: CIEN) has come out with earnings and posted a 7% drop in non-GAAP EPS to $0.37 EPS on a 24% revenue rise to $253.2 million. First Call had estimates at $0.37 and $253.6M. Unfortunately the fiber optic and networking company is seeing a slowdown and order delay from its Tier One telecom and data carrier clients. It has now lowered revenue guidance to $190 to $210 million for its fiscal fourth quarter, which is a far cry from the $263 million expected by analysts in the First Call surveys.
The company said that while it has seen no project or ordercancellations, it is seeing sales cycles lengthening out farther andmany customer deployments are slowing. If you have followed JDSUniphase (NASDAQ: JDSU) and others in the telecom and data carriersectors this is no surprise in the thought of a business slowdown fromcustomers delaying orders or slowing down on their expansions. But theraw amount of the shortfall is far wider than any analysts wereconsidering. The absolute lowest estimate was still over $216 millionwith $263 million being expected.
Shares are halted after closing up 1% at $17.43 yesterday. these havealready been battered as the 52-week trading range is $16.34 to$49.55. Anyone hoping for any turn in trends in this sector is goingto have to wait a little longer.
Jon C. Ogg
September 4, 2008
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
