Ciena Loss Narrows Sharply

By Tess Stynes 

Ciena Corp. said its fiscal first-quarter loss narrowed sharply on stronger revenue.

The telecom-equipment company's revenue has continued to improve as the optical gear market shows signs of increasing demand after an extended lull. Ahead of the report, RBC Capital Markets said Ciena has diversified its customer base and product offerings, while network upgrades have helped boost orders.

Looking ahead, Ciena's recent strategic partnership with Ericsson to jointly develop optical-networking gear may provide a broader reach--especially with international wireless operators--as well as strengthen relationships with existing customers.

For the period ended Jan. 31, Ciena reported a loss of $15.9 million, or 15 cents a share, compared with a year-earlier loss of $47.3 million, or 47 cents a share. Excluding stock-based compensation, year-earlier debt-extinguishment losses and other items, adjusted earnings rose to 13 cents a share from 12 cents. Analysts polled by Thomson Reuters expected a per-share profit of six cents.

Revenue increased 18% to $533.7 million, in line with the company's projection of $515 million to $545 million.

By segment, converged packet optical revenue jumped 39% to $333.4 million, while software and services revenue increased 13% to $51.7 million.

For the current quarter, Ciena forecast revenue of $540 million to $570 million. Analysts expected $561 million.

Write to Tess Stynes at [e-mail]

Order free Annual Report for LM Ericsson Telefon AB

Visit http://djnweurope.ar.wilink.com/?ticker=SE0000108656 or call [phone]

Order free Annual Report for Ciena Corp.

Visit http://djnweurope.ar.wilink.com/?ticker=US1717793095 or call [phone]

Order free Annual Report for LM Ericsson Telefon AB

Visit http://djnweurope.ar.wilink.com/?ticker=US2948216088 or call [phone]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires