Ciena narrows its losses

Dylan Bushell-Embling
telecomasia.net
Networking vendor Ciena narrowed its losses quarterly losses in the three months to April but warned that conditions remain tough in Europe.
 
The company reported an unaudited net loss of $90 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 writedown, adjusted non-GAAP net loss was $11.7 million, 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 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 sales in the same quarter a year ago.
 
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.

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