Ciena Corp

Ciena Corporation announced Fiscal First Quarter 2016 Financial Results. For the fiscal first quarter 2016, Ciena reported revenue of $573.1 million as compared to $529.2 million for the fiscal first quarter 2015. Ciena’s adjusted (non-GAAP) net income for the fiscal first quarter 2016 was $25.2 million, or $0.18 per diluted common share, which compares to an adjusted (non-GAAP) net income of $13.6 million, or $0.12 per diluted common share, for the fiscal first quarter 2015.

“We delivered strong first quarter business and financial performance, including 8% adjusted operating margin, highlighted by engagement with a more diverse set of customers,” said Gary B. Smith, president and CEO, Ciena. “Despite some recent volatility in the broader macroeconomic environment, the demand drivers for our business remain firmly in place and we are well positioned to translate our market leadership into continued growth and profitability this fiscal year.”

In spite of the beat, shares tumbled 18% on Thursday due to a cut in 2016 revenue guidance. Revenues for the second quarter of fiscal 2016 are forecast at $615 million to $645 million. Non-GAAP gross margin is projected in around mid 40%. Non-GAAP operating expense was projected at approximately $225 million.

For fiscal 2016, Ciena now projects revenue growth in the range of 5% to 8%, down from the earlier expectation of 8% to 9%. The blame is put on soft demand in the EMEA region.

Last quarter, Ciena also disappointed on guidance.

Ciena is a manufacturer of optical tranport telecommunication equipment, including the 6500 Packet-Optical Platform, and BluePlanet, network virtualization, orchestration and mangement software.

Here is the Ciena Press Release