Shares of the Linthicum, Maryland-based dropped nearly 9% to $3.93 on Nasdaq despite announcing some solid third quarter results that saw the company narrow its loss considerably and grow its revenue by 38% year-over-year.
The net loss for the quarter was $4.3m (-1 cents EPS), which is a vast improvement over the $51m loss a year ago. Revenue for the quarter stood at $152.5m, up from $110.5m in the same quarter a year ago. This was Ciena’s tenth consecutive quarter of growth.
But the company issued a cautious guidance for its fourth quarter that left some investors disappointed. Ciena’s board also approved a 1 for 7 reverse stock split that will come into effect on September 22.
Ciena’s fourth quarter outlook of post reverse split earnings of between 10 to 12 cents EPS implies a sequential decline from the previous quarter’s 15 cents per share.
The company also forecast sequential revenue growth in the fourth quarter of just 5%, which is well below the growth for the third quarter.
Incorporated in 1992, Ciena makes network and communications gear for global telco service providers and cable operators. The company is organized into four business lines: switching, broadband access, data networking and network services
Ciena’s stock has traded between $2.09 and $5.52 over the past 12 months.
