Ciena: Losses Wider Than Forecast
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LINTHICUM, Md. (AP) _ Optical networking equipment maker Ciena Corp. announced Tuesday it will cut 400 jobs, or 12 percent of its work force, and expects its first-quarter loss to be nearly double what analysts had been expecting.
Excluding charges, Ciena said it expected to lose between 19 and 22 cents a share. Analysts surveyed by Thomson Financial/First Call had predicted Ciena would lose 11 cents a share in the first quarter.
Second-quarter revenue is also expected to be flat or down compared with the first quarter, said Gary Smith, Ciena’s president and CEO.
As a result, the company said it was cutting 12 percent of its work force and closing its Marlborough, Mass., research and development facility. The cuts follow an announcement in November, when the company said it was cutting 380 employees.
Investors sent Ciena’s stock down 54 cents to $9.58 in morning trading Tuesday on the Nasdaq Stock market.
Smith said first-quarter revenues were lower than expected because several major customers ``made substantial changes in their deployment plans resulting in significant reductions in the amounts of equipment they had previously indicated they anticipated purchasing from us.″
``Even now, a month into the new calendar year, our customers’ capital budgets and deployment plans for 2002 remain uncertain,″ Smith said.
Ciena also said it will take a second-quarter restructuring charge of up to $11 million because of the job cuts, lease terminations, non-cancelable lease costs and the write-down of certain property, equipment and leasehold improvements.
Ciena said it will report first quarter results on Feb. 21.