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.