Ciena books widening losses but sees growth ahead

Quarterly net losses at networking vendor Ciena have widened to $26.7m (£16.3m) for its fiscal fourth quarter, and $581.2m for the year ended 31 October after booking a one-off goodwill impairment charge of over $450m, but is forecasting growth above analyst expectations for Q1 2010. CEO and p

Quarterly net losses at networking vendor Ciena have widened to $26.7m (£16.3m) for its fiscal fourth quarter, and $581.2m for the year ended 31 October after booking a one-off goodwill impairment charge of over $450m, but is forecasting growth above analyst expectations for Q1 2010.

CEO and president Gary Smith said the vendor was targeting sequential sales growth of 5% to the end of January, a figure that does not yet include the contribution expected from the recently acquired Nortel MEN unit, which will double Ciena's size. 

"We're excited about the prospect of our combination with the Nortel MEN business. We believe the combined company will be well-positioned to capture additional market share with a product portfolio and vision that is aligned with market direction," said Smith. 

Fourth quarter revenues at the Maryland-based firm came in at $176.3m, down 1.8% year-on-year. Product sales remained relatively flat thanks to orders from one major customer, thought to be US comms leviathan AT&T, while services revenues fell 8%. 

Analysts had been looking for fourth quarter sales of just under $168m, according to a Thomson Reuters poll.

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