Ciena reports better-than-expected fourth-quarter earnings.
NEW YORK (TheStreet) -- Ciena(:CIEN) shares rose in early trading Thursday after the optical networking company reported better-than-expected fourth-quarter earnings, but issued weaker-than-expected first-quarter guidance.
Ciena reported fourth-quarter adjusted earnings of 3 cents a share on revenue of $455.5 million. Wall Street was looking for a loss of 1 cent a share on revenue of $450.3 million.
Ciena Corp. headquarters
Ciena's first-quarter 2012 guidance was below the expectations of analysts on Wall Street. The company said Thursday it expects sales to be in the range of $435 million to $455 million. Analysts forecast $454 million in sales.
"We continue to deliver on the growth and operating efficiency milestones we laid out early last year, and remain focused on delivering operating leverage from the business. Our strong fourth-quarter financial performance included positive cash flow and a second consecutive quarter of as-adjusted operating profit," said Gary Smith, president and CEO, in a press release. "While macroeconomic uncertainty remains, we are taking market share because customers recognize our differentiation and the strong alignment of our portfolio with their network architecture priorities."
The company said margins in the first quarter would be in the "low 40s range", as spending by large phone companies such as AT&T(:T) continues to be weak. Ciena competitor Finisar(:FNSR) recently provided a weaker outlook as well.
Ciena shares rose 9.1% to $13 early Thursday.
--Written by Chris Ciaccia in New York.
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