Ciena ekes out net income of $1.6 million in quarter

Analysts had estimated firm would break even

Telecommunications

May 21, 1999|By Mark Ribbing | Mark Ribbing,SUN STAFF

Barely beating Wall Street expectations, Ciena Corp. said yesterday that it had net income of $1.6 million, or 1 cent per diluted share, in the quarter ending April 30.

An analyst survey released just before the earnings sheet came out predicted that the Linthicum-based telecommunications equipment maker would break even on its second fiscal quarter.

For the corresponding period last year, Ciena reported $15.2 million in net income, or 14 cents per share.

Revenue for the quarter was $111.5 million, down from the $142.7 million in the corresponding period last year.

Ciena's quarterly performance was weighed down in part by acquisition expenses. The company incurred $2.3 million in costs related to the purchase of California start-up Lightera Networks Inc.

In addition, Ciena has only begun to dig its way out from under the avalanche of bad news that buried the company in the second half last year. Tellabs Inc.'s proposed multibillion-dollar purchase of Ciena fell apart as concerns over rising competition in the telecommunications equipment industry and its stock value tumbled precipitously.

"Coming out of fiscal 1998, we felt it was necessary to set some aggressive performance targets for ourselves, and we are pleased to have met those targets for the second straight quarter," Ciena President and Chief Executive Officer Patrick Nettles said in a statement yesterday.

The earnings report came out after the close of markets. During yesterday's trading session, Ciena shares fell $2.25 to close at $26.375.

Pub Date: 5/21/99

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