Ciena Down 14% After Missing Q2 Estimates

Ciena (NASDAQ:CIEN) revealed on Wednesday a deeper-than-expected non-GAAP loss in its fiscal second quarter and projected gloomy sales for the current quarter, sending the companys stock tumbling double-digits.

The Linthicum, Md.-based communication equipment maker said it lost $62.7 million, or 66 cents a share, in the quarter ended April 30, compared with a deeper loss of $90 million, or 97 cents a share, a year earlier.

Excluding one-time items, Ciena lost 24 cents, significantly missing consensus calls for a loss of just 11 cents.

Ciena, which supplies equipment to AT&T (NYSE:T) and Verizon (NYSE:VZ), said its revenue leaped 65% to $417.9 million, but that trailed the Streets view of $428.2 million

At the same time, Ciena warned it expects to post sales of $435 million to $455 million in the current quarter. Even the high end of that range would fail to meet expectations for $456.1 million. The company also projected gross margins in the low 40s range.

Despite the weaker-than-expected results and forecast, Ciena struck an upbeat tone in its press release.

Momentum continues to be strong across our business, as evidenced by high levels of customer engagement, additional design wins around the world and strong order flows, CEO Gary Smith said.

Shareholders were decidedly less optimistic, driving Cienas stock 11.07% lower to $21.53 ahead of the open. The losses threaten to wipe out much of the stocks 15% 2011 gain.