As of 1:45 EDT, Ciena Corporation (NYSE:$CIEN) sank by 9%, after the networking specialist reported its fiscal third quarter earnings. While the results were better than expectations, the future of revenue growth discouraged investors.
A look at the third quarter earnings report:
- Revenue totaled $728.7 million, an increase of 9% from year over year
- Non-GAAP earnings per share of $0.51, topping estimates of $0.49 per share in adjusted profits
- Gross margin totaled 45%
- Operating margin totaled 11.3%
- Ciena finished the quarter with $854.2 million in cash and investments
CEO of Ciena, Gary B.Smith stated: “We look forward to continuing our growth and profitability. We have also increased additional market share through diversification and innovative leadership.”
So what’s troubling investors? Revenue in upcoming fourth quarter is expected to be between $720 million to $750 million, shy of the $766 million in sales that analysts projected for.
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