(By Balachander) Ciena Corp. (NASDAQ:CIEN) posted a wider-than-forecast quarterly loss and the provider of networking services issued a downbeat revenue outlook, citing slower-than-expected roll-outs of new design wins. Shares tumbled 10.4 percent in premarket on Thursday.
On a non-GAAP basis, net loss was $4.1 million or 4 cents a share for the third quarter, compared with earnings of $8.3 million or 8 cents a share in the year-ago quarter. Wall Street analysts, on average, expected CIEN to lose 2 cents a share.
On a GAAP basis, loss per share narrowed to 30 cents from 33 cents.
Revenue rose 8.9 percent to $474 million, in line with consensus estimate. Sequentially, top-line witnessed a 0.7 percent drop. Revenue from the company's packet-optical transport products grew 12 percent.
Adjusted gross margin shrank to 39.6 percent from 44.2 percent in the prior year quarter.
Looking ahead for the fourth quarter, CIEN sees revenue between $455 and $480 million, trailing consensus estimate of $499.5 million. It expects adjusted gross margin of roughly 40 percent.
The stock, which has been trading in the 52-week range of $9.89 to $18.39, closed at $16.72 on Wednesday.