Optical transport vendor Ciena (www.ciena.com) reported fiscal 2014 third-quarter revenues of $603.6 million and adjusted (non-GAAP) earnings of $0.32 per share for the quarter ended July 31, slightly exceeding Wall Street’s expectations.

“Our outstanding third quarter performance demonstrates our ability to grow profitability and outperform the market,” stated Gary Smith, CEO, in a prepared earnings statement. “As we expand our addressable market by targeting high-growth, high-value segments, we are confident in our opportunity to grow the business and drive additional operating leverage in 2015.”

Ciena also announced that AT&T has named the company to its Domain 2.0 program. This move potentially opens more doors for Ciena within AT&T. It is also a strong endorsement for Ciena’s SDN/NFV developments.

However, the news was not all good. Ciena’s forecast for the fourth quarter was warned to be lower than expected. Ciena warned that its financials 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.”

As a result, Ciena expects its fiscal fourth-quarter revenues to be in the range of $570 million to $610 million, compared with the near $629 million that Wall Street average forecast.

Investors were more spooked by the fourth quarter forecast than the strong third quarter results. Share prices closed down 9.5% on the day.

For Ciena’s press release go to http://investor.ciena.com/phoenix.zhtml?c=99134&p=irol-newsArticle&ID=1963735&highlight=