Shares of Ciena Corp. (CIEN) plunged over 17 percent on Thursday after it posted a higher-than-expected third-quarter loss and forecast a weak revenue outlook for the fourth quarter.
Chief Executive Gary Smith said, "We are experiencing the effects of ongoing macroeconomic challenges and slower than expected roll-outs of new design wins."
The slow growth in US economy and the continued weakness in Europe has made a deep impact on all network equipment maker's bottom line. Ciena, which counts AT&T Inc. (T) and Verizon Communications Inc. (VZ) among its top customers, was affected by these wireless carriers delaying orders for new equipments and curbing capital expenditures.
Linthicum, Maryland-based Ciena's third-quarter net loss narrowed down to $29.8 million or $0.30 per share from $31.5 million or $0.33 per share last year.
However, excluding special gains and losses, net loss was $4.1 million or $0.04 per share, compared to net income of $8.3 million or $0.08 per share last year. On average, 22 analysts polled by Thomson Reuters expected loss of $0.02 per share. Analysts' estimates typically exclude one-time items.
Revenues for the quarter grew to $474.1 million from $435.31 million last year. Analysts on a consensus estimated revenues of $473.88 million for the quarter. The company said its non-U.S. customers contributed 50 percent of total revenue.
Product revenues increased to $373.4 million from $350.0 million in the prior year. Services revenues were $100.7 million, higher than $85.3 million a year earlier.
Third-quarter gross margins, or percentage of sales left after subtracting production costs, dropped to 38.2 percent from 42.5 percent last year.
Moving ahead, the networking gear maker expects fourth-quarter revenues of $455 million to $480 million. However, it is below analysts' current estimate of $499.49 million.
CIEN is currently trading on the Nasdaq at $13.77, down $2.95 or 17.64%, on a volume of 20.2 million shares, above the three-month average volume of 6 million.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.