Ciena (NASDAQ:CIEN) fell deeper into the red during its fiscal first quarter and issued a tepid outlook for the current quarter, sending the networking equipment provider’s stock dropping 4% Monday morning.
Linthicum, Md.-based Ciena said it lost $79.1 million, or 84 cents a share, last quarter, compared with a loss of $53.3 million, or 58 cents a share, a year earlier. Excluding one-time items, it lost 14 cents a share, compared with consensus calls for a loss of 16 cents.
Revenue leaped to $433.3 million, surpassing the Street’s view of $421.9 million.
“As we approach the one year mark of our combination with the Nortel MEN business, we have successfully accomplished our major integration milestones and are now operating from a single, unified foundation from which to maximize the operating leverage in the business,” CEO Gary Smith said in a statement.
Ciena projected fiscal second-quarter sales of $415 million to $435 million, coming in shy of estimates on Wall Street for $438.5 million. The company also said it sees adjusted gross margins in the low 40s range, compared the prior quarter’s 41.8%.
“We are mindful of the effects of our back office integration activity, which -- while extremely well-executed -- resulted in some revenue acceleration into the first quarter and minor ERP-related supply chain constraints at the beginning of our second quarter,” said Smith.
After initially diving more than 9% in the premarkets, Ciena’s stock was off just 3.34% to $28.81 ahead of Monday’s open. The bar had been set high as the stock has surged 37% this year and 117% over the past 26 weeks.