Ciena (CIEN) slashed its fourth-quarter loss but still missed Wall Street’s earnings view amid higher costs, sending shares down 4% Thursday morning.
The telecom equipment maker reported a loss of $9.8 million, or nine cents a share, compared to a year-ago loss of $38.8 million, or 39 cents a share.
Excluding one-time items, the company logged a profit of 16 cents a share, bouncing back from a loss of seven cents. Meanwhile, analysts were looking for adjusted per-share earnings of 24 cents.
Ciena did record stronger-than-expected revenue of $583.4 million, an increase of 25% over the same period last year. Input costs jumped 29% to $351.7 million and gross margin fell to 39.7% from 42.4%, keeping earnings below estimates.
The company has seen improved sales results over the last year, although items like depreciation of equipment and provisions for excess inventory have recently pressured Ciena’s bottom line.
In the latest period, converged packet optical revenue soared 47% to $350.9 million. Revenue from software and services climbed 9.6% to $118.7 million.
Ciena forecasted revenue of $515 to $545 million for the first quarter, while Wall Street analysts expected $538 million.
Also on Thursday, the Hanover, Md.-based company announced a transfer to the New York Stock Exchange from the Nasdaq. The move is expected on Dec. 23. Ciena said it will keep its current ticker symbol, CIEN.
Shares fell 87 cents to $22.03 in recent trading. Through Wednesday’s close, Ciena’s stock was up 45.8% on the year.