Shares of network equipment maker Ciena Corp. fell sharply Wednesday after it reported a larger loss and lower revenue than Wall Street expected, coupled with a disappointing forecast for the current quarter.
The shares fell $3.92, or nearly 16.2 percent, to close at $20.29. Over the last year, the shares have traded as low as $11.86 and as high as $29.24.
Gary Smith, the company’s CEO, said the weak earnings were the result of investments in entering new countries and client industries.
“All of these investments have been carefully selected to take advantage of market opportunity and our clear technology leadership. While we anticipated and planned for these investments, the costs have impacted and are continuing to impact a number of financial and operational metrics,” Smith told analysts on a conference call.
The Linthicum-based company reported a net loss of $62.7 million, or 66 cents per share, in the fiscal second quarter, which ended April 30. That compares with a year-earlier loss of $90 million, or 97 cents per share.
Excluding special items, the loss was 24 cents per share. Analysts polled by FactSet had expected an adjusted loss of 10 cents per share.
Revenue rose 65 percent to $418 million from $253 million a year ago. The increase reflected the year-ago purchase of a part of Nortel Networks Corp. That was at the low end of Ciena’s own forecast, and less than the $429 million analysts had expected.
For the current quarter, the company forecast revenue between $435 million and $455 million. Analysts had been expecting revenue of $456 million.