Ciena Says Weak Economy Eating Into Demand |
| Wall Street Journal - Sep 8, 2010 |
Ciena Corp. (CIEN) said Wednesday demand for its networking systems remains strong, but hamstrung by economic uncertainty.
"The demand drivers are certainly very strong, but it's been dampened by the overall cautious perspective on the economy," Ciena's Chief Executive Gary Smith said in an interview.
Among those drivers are networks strained by high-bandwith uses such as video and increased traffic on the Internet, requiring upgrades to infrastructure. But with the economic future still looking cloudy, Smith said customers are reluctant about making significant investments.
Despite the tepid economic outlook, Ciena shares rose 5.4% to $14.15, as the company's adjusted third-quarter loss was narrower than analysts had expected.
The company forecast an increase in fourth-quarter revenue of "up to 5%" from the third quarter, which means revenue could be as high as $409.2 million. Analysts surveyed by Thomson Reuters, on average, expect revenue of $424 million.
Read Full Article from Wall Street Journal
- Posted: 2010-09-08 23:44:39
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