This morning, Ciena reported fiscal third-quarter net income of $60 million, or 39 cents per diluted share. Earnings, adjusted for stock option expense and amortization costs, were 51 cents per share. These results beat expectations by 2 cents.
Revenue came in at $728.7 million in the period, also beating forecasts.
However, forecasts for the upcoming quarter ending in October are weak. Ciena said it expects revenue in the range of $720 million to $750 million. Analysts were expecting revenue of over $760 million.
“We delivered another solid quarter with strong revenue growth and profitability, and we took additional market share through our diversification and innovation leadership,” said Gary B. Smith, president and CEO, Ciena. “Our continued success, combined with strong fundamental demand drivers that are playing in our favor, is drawing a clear division between the winners and losers in the marketplace.”
Evidently, investors were disappointed with the forecast, with shares opening almost 10% lower.
Results were consistent with other industry telecom equipment manufacturers, who reported OK results, but with disappointing forecasts, including Cisco http://www.truepulse.com/ciscos-results-underwhelm/, Nokia, Huawei http://www.truepulse.com/telecom-industry-downturn/ and Ericsson http://www.truepulse.com/ericsson-disappoints-2017q2-results/