Network specialist Ciena Corp. (CIEN: Quote) reported Thursday a loss for the fourth quarter that widened from last year, reflecting lower margins and an year ago gain on cost method investments. Adjusted loss per share came in wider than analysts' expectations, and quarterly revenues also missed their estimates by a whisker. The company also provided revenue guidance for the first quarter, in line with Street view.
Following the announcement, the company's stock is down nearly 4 percent in pre-market trading.
"With five percent annual revenue growth and fourth quarter financial performance in line with our expectations, we continued to significantly outpace the market and take share in 2012 despite the challenging environment. That momentum resulted in record order flow and year-end backlog," President and CEO Gary Smith said in a statement.
The Linthicum, Maryland-based telecommunications networking equipment maker reported a net loss of $38.77 million or $0.39 per share for the fourth quarter, wider than $22.33 million or $0.23 per share in the prior-year quarter.
Excluding items, adjusted net loss for the quarter was $6.67 million or $0.07 per share, compared to adjusted profit of $3.26 million or $0.03 per share in the year-ago quarter.
On average, 20 analysts polled by Thomson Reuters expected the company to report a loss of $0.06 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 2.2 percent to $465.53 million from $455.46 million in the same quarter last year, but missed twenty Wall Street analysts' consensus estimate of $468.28 million by a whisker.
The company noted that non-U.S. customers contributed 46 percent of the revenues, and one 10 percent-plus customer represented a total of 11 percent of quarterly revenue.
Gross margin for the quarter contracted 40 basis points to 41.3 percent from a year ago, and adjusted gross margin declined 50 basis points to 42.7 percent from last year.
For fiscal 2012, the company reported a net loss of $144.02 million or $1.45 per share, narrower than $195.52 million or $2.04 per share in the prior year.
Excluding items, adjusted net loss for the year was $23.52 million or $0.24 per share, compared to adjusted net loss of $24.16 million or $0.25 per share in the year ago. Analysts expected the company to report a loss of $0.23 per share for fiscal 2012.
Net revenues for the full year grew 5 percent to $1.83 billion from $1.74 billion in the previous year. Street was looking for full-year 2012 revenues of $1.84 billion.
Looking ahead to the first quarter of fiscal 2013, Ciena expects revenues in a range of $435 million to $460 million. Analysts expect the company to report revenues of $458.61 million for the quarter.
Ciena also said that it anticipates adjusted gross margin for the first quarter to be in the low 40s range.
CIEN closed Wednesday's regular trading session at $15.57, up $0.16 on a volume of 4.75 million shares. In the past 52-week period, the stock has been trading in a range of $10.30 to $18.39.
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by RTT Staff Writer
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