Ciena Turns To Profit In Q4, But Results Miss View

(RTTNews) - Ciena Corp. (CIEN), a provider of communications networking solutions, on Thursday reported a turnaround to profit in the fourth quarter on higher revenues and lower expenses.

However results for the quarter missed analysts' estimates. Looking ahead, the company forecast revenue for the first quarter of fiscal 2017 in line with analysts' expectations.

Ciena's net income for the fourth quarter was $36.59 million, or $0.25 per share, compared to net loss of $13.83 million or $0.10 per share in the year-ago period.

Adjusted earnings for the quarter was $69.40 million or $0.44 per share, compared to adjusted net income of $67.28 million or $0.42 per share in the year-ago period.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter rose 3.5 percent to $716.19 million from $691.97 million in the year-ago quarter. Analysts had a consensus revenue estimate of $716.48 million.

Total operating expenses declined to $258.88 million from $293.57 million last year.

Gross margin for the quarter increased to 44.5 percent from 43.8 percent last year, while operating margin surged to 8.3 percent from 1.4 percent a year ago.

Looking ahead to the first quarter, Ciena forecast revenue of $615 million to $645 million, and adjusted gross margin in the mid-40s percentage range. The Street expects revenues of $634.60 million for the quarter.