UPDATE: Ciena Shares Drop On Weak Q4 Sales Forecast

Shares of Ciena

dipped more than 12% in pre-market trading after the company issued a weak fiscal fourth-quarter forecast. However, the company reported upbeat third-quarter results. Ciena projects FQ4 sales of $570 million to $610 million, versus analysts' estimates of $629 million. It expects adjusted gross margin in the high 30s to low 40s percent range and adjusted operating expense of around $210 million. The Hanover, Maryland-based company posted quarterly net income of $16.2 million, or $0.15 per share, versus a year-ago net loss of $1.2 million, or $0.01 per share. Its adjusted earnings came in at $0.32 per share, up from $0.23 per share. Its revenue surged to $603.6 million from $538.4 million. However, analysts were expecting earnings of $0.29 per share on revenue of $600.81 million. “Our outstanding third quarter performance demonstrates our ability to grow profitability and outperform the market,” said Gary B. Smith, president and CEO, Ciena. Ciena shares fell 12.07% to $17.99 in pre-market trading.