Ciena shares fall on uncertainty of orders

Maryland Watch

May 23, 1998

Shares of Ciena Corp. slipped as much as 6.6 percent yesterday due to uncertainty about future orders from WorldCom Inc. and AT&T Corp.

The Linthicum-based telecommunications network equipment company's stock closed at $49.25 on the Nasdaq stock market, down $2.8125.

Ciena had discussed the orders' status in a statement accompanying its fiscal second-quarter earnings report, which was released after the close of markets on Thursday.

The company said it still expects to meet its yearly revenue target of $603 million.

It wasn't the first time that such uncertainty has lowered Ciena's stock. In February, Ciena shares plummeted on news that WorldCom would delay some orders.

Ciena then built up its client base. After adjustments for one-time charges, the company's earnings met or exceeded expectations.

"The company did a phenomenal job in getting revenues back in line, but the uncertainties still continue," said Gurinder Parhar, an analyst with HSBC Securities in Toronto. "The markets hate uncertainty."

Pub Date: 5/23/98

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