Ciena slims Q2 losses

Networking vendor Ciena narrowed its losses significantly in its fiscal Q210 – the three months to end April -, but warned that conditions remain tough in Europe.
 
The company reported an unaudited net loss of $90 million (€74.8 million), compared to a $503 million loss the year before – although the latter included a $455.7 million goodwill write down.
 
Barring the effects of charges such as the write down, adjusted non-GAAP net loss was $11.7 million in 2Q10, down from $22.5 million in 2Q09.
 
Ciena's 2Q10 revenue of $253.5 million was augmented by $53.5 million accrued from Nortel's former Metro Ethernet Networks business - which Ciena recently acquired for $773.8 million - during the last six weeks of the quarter.
 
The $200 million earned without the acquired assets was a 39% increase on Ciena's 2Q09 revenue of $175.9 million.
 
Ciena CEO Gary Smith said he was encouraged by Ciena's recent performance, but warned that recovery could be held back by “volatile macroeconomic conditions” in Europe.
 
Non-US customers accounted for 29% of Ciena's total revenue in Q2.
 
Smith predicted Q3 revenue of $375 million to $400 million, and a “low-40s” adjusted gross margin.

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.