UPDATE: Ciena Shares Drop On Unexpected Loss

Shares of Ciena

dropped more than 4% in pre-market trading after the company reported a loss for the fiscal fourth quarter. However, the company reported better-than-expected quarterly revenue. The Hanover, Maryland-based company reported a quarterly loss of $30.7 million, or $0.29 per share, versus a year-ago loss of $9.8 million, or $0.09 per share. Excluding non-recurring items, the company lost $0.08 per share. Its revenue climbed to $591 million from $583.4 million in the period. However, analysts were estimating earnings of $0.13 per share on revenue of $589.4 million. Revenue from Converged Packet Optical segment climbed to $383.3 million in the latest quarter from $350.9 million in the year-ago quarter, while revenue from Packet Networking declined to $56.4 million from $61.2 million. Revenue from Optical Transport slipped to $26.5 million from $52.6 million, while revenue from Software and Services segment gained to $124.8 million from $118.7 million. Adjusted gross margin shrank to 37.9% versus 40.8%. “We delivered strong revenue growth and improved profitability in fiscal 2014 as we benefited from a more diversified customer base and the strong alignment of our solutions with the increasing on-demand needs of our customers,” said Gary B. Smith, president and CEO of Ciena. For the current quarter, Ciena projects revenue of $540 million to $570 million, versus analysts' estimates of $568.4 million. Ciena shares fell 4.19% to $16.25 in pre-market trading.