Ciena posts ninth straight net loss


Ciena posts ninth straight net loss

Alex Scroxton

Optical networking vendor Ciena has posted its ninth sequential net loss in the final quarter of its fiscal 2010, which closed at the end of October.

The Maryland, US-based vendor, which completed a major buy-out of Nortel's Metro Ethernet Network (MEN) business in March dropped $80.3m (£51m) into the red, more than anticipated and significantly worse than this time last year.

The figure included $18m of expenses related to the Nortel acquisition and $4.5m in restructuring costs.

Net sales of $417.6m were up 7% sequentially and well over 100% year-on-year. The Nortel MEN business contributed $256.6m to the coffers, and approximately 50% of sales came from EMEA and other markets outside the North American theatre.

Full-year sales were up 83% to $1.2bn, reflecting Ciena's new-found scale post-acquisition, while 12 month net losses sank to $333.5m or $3.58 per common share.

Nevertheless, Ciena president and CEO Gary Smith said that overall sales were strong and the integration of the MEN business was on track.

"It is evident that our strategic direction and execution continue to be validated by the market," he said today. "As a focused player with scale, we are taking advantage of our increased global reach and market leadership to capitalise on future growth opportunities and improve operating leverage."

Smith predicted that first quarter revenue would be between $410m and $430m, and called for adjusted gross margin to be in the low forties.

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