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Ciena sales soar, losses narrow following Nortel acquisition

Alex Scroxton
Network infrastructure vendor Ciena has reported unaudited second quarter sales of $253.5m (£174m), up 75% on the year-ago quarter, after booking $53.5m worth of sales from the former Nortel Metro Ethernet Networking (MEN) business.

Underlying sales excluding the impact of the MEN acquisition rose a still impressive 39% to $200m.

In a statement that former Nortel staff can take as testament to their technological skill, Ciena CEO and president Gary Smith said he was "very pleased with our progress to date in combining the two companies, and continue to be encouraged by positive market reaction to the acquisition and growing levels of customer engagement."

Ciena remained a loss-making business during the quarter, booking GAAP net losses of $90m, including integration and acquisition expenses related to the Nortel acquisition. However, this was a vast improvement on total net losses of $503.2m this time last year.

"We are encouraged by recent signs of recovery in customer spending, although Europe remains a challenge due to volatile macroeconomic conditions," stated Smith.

"While we still have work to do in delivering the full value of the combined company we believe we are strategically well-positioned with strong customer relationships and a portfolio of leading solutions," he continued.

Ciena anticipates making sales of around $375 to $400m during Q3.

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