Ciena Turns To Profit In Q3; Sees Q4 Revenue Below View - Quick Facts

(RTTNews) - Ciena Corp. (CIEN) reported that its net income for the fiscal third quarter 2014 was $16.2 million or $0.15 per share, compared to a net loss of $1.2 million, or $0.01 per share in the fiscal third quarter 2013.

Adjusted net income for the third quarter was $40.9 million or $0.32 per share, up from $26.2 million or $0.23 per share in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.29 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenue grew to $603.6 million from $538.4 million in the prior year quarter. Wall Street expected revenues of $600.81 million for the quarter.

"Our outstanding third quarter performance demonstrates our ability to grow profitability and outperform the market. As we expand our addressable market by targeting high-growth, high-value segments, we are confident in our opportunity to grow the business and drive additional operating leverage in 2015," said Gary Smith, president and CEO, Ciena.

Ciena expects fiscal fourth quarter 2014 to be impacted by several significant variables that contribute to a broader range of potential outcomes for both revenue and gross margin than typically expected.

For the fourth quarter 2014, the company expects revenue to be in the range of $570 million to $610 million, adjusted operating expense of approximately $210 million, and adjusted gross margin to be in the high 30s to low 40s percent range. Wall Street expect revenues of $628.88 million for the fourth quarter.