Shares of Ciena Corporation (CIEN) are down more than 7% Thursday morning after reporting lower profit as well as revenue in the third quarter, below analysts' view.
Ciena provides network hardware, software, and services that support the transport, routing, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks.
"Despite continued strong customer demand, our fiscal third quarter financial results were negatively impacted by late delivery and substantially lower-than-committed volume from a small number of suppliers for specific components that are essential for delivering finished goods to our customers," said Gary Smith, president and CEO of Ciena.
Looking forward, the company expects the elements that negatively influenced the third quarter results to extend to the fourth quarter.
Net income for the third quarter was $10.51 million, or $0.07 per share, significantly lower than $238.23 million, or $1.52 per share, for the same quarter a year ago, hurt primarily by lower revenue.
Excluding one-time items, earnings were $49.03 million, or $0.33 per share, that missed the average estimate of analysts polled by Thomson Reuters of $0.34 per share.
Quarterly revenue declined 12.2% to $867.98 million from $988.14 million last year. The consensus estimate was for $903.95 million.
CIEN is at $47.04 currently. It has traded in the range of $41.63-$78.28 in the last 1 year.
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