Ciena Gains on Higher Revenue Forecast
It was revealed on Wednesday that Ciena (NASDAQ: CIEN), a company that makes network equipment for phone companies, gained the most since December after forecasting fiscal second-quarter revenue topping analyst estimates.
According to Bloomberg, Ciena climbed 7.8% to $14.49 at 10:56 a.m. EST, after making the forecast in a statement that reported 1Q earnings. CIEN had earlier reached 9.8%, and the shares had increased 11% in total for 2012 before Wednesday.
CIEN said in February that 1Q results would suffer due to delays in recording international sales. Today though, the company predicted stronger operating results in the second half of the year.
In a research report released on Wednesday morning, J.P. Morgan said that Ciena reported revenues a touch ahead of their preannounced number. However, gross margins were weaker than we expected pushing losses a higher than our forecast. “However, with the economy still in question and H1 coming in worse than we had expected we are taking a "show me" approach to H2. We do not expect these numbers to have much readacross impact on other stocks today.”
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