UPDATE: Ciena Posts Upbeat Q4 Earnings, Revenue Drops

reported better-than-expected adjusted earnings for the fourth quarter, but the company's revenue missed analysts' expectations. The Hanover, Maryland-based company posted quarterly loss of $18.8 million, or $0.17 per share, versus a year-ago loss of $15.9 million, or $0.15 per share. Excluding special items, the company's earnings slipped to $0.12 from $0.13 per share. Its revenue fell to $529.2 million from 533.7 million. However, analysts were expecting earnings of $0.03 per share on revenue of $558.78 million. Converged packet optical revenue rose to $336.6 million in the fourth quarter from $333.4 million, while software and services revenue gained 6.3% to $115.3 million. Optical transport revenue dropped to $22.3 million from $40.1 million in the year-ago quarter, while packet networking revenue climbed to $55 million from $51.7 million. "Our first quarter performance is highlighted by continued customer diversification, an expanding portfolio, and strong profitability. While order timing and foreign exchange headwinds impacted revenue in the quarter, we delivered improved gross margin and excellent operating profit," said Gary B. Smith, president and CEO of Ciena. For the current quarter, the company projects revenue of $585 million to $615 million, versus analysts' estimates of $597 million. Ciena shares climbed 2.43% to $21.10 in pre-market trading.