On June 4, 2009, Ciena announced second quarter earnings that missed expecations. Ciena swung to a loss of $503.2 million, or $5.53 a share, for the period ended April 30, compared with year-earlier profit of $23.8 million, or 23 cents a share. Excluding a goodwill write-off, disclosed in April, and other items including restructuring costs, the loss would have been 25 cents. [1]
Ciena Corporation expects strong business trends and improvement in its gross margins, as the demand for bandwidth is growing. Further, the company is selling higher-margin products. The company is expected to exceed its own sales forecast this year. Morgan Keegan maintained its rating of ‘Market Perform’, and Deutsche Bank raised its price target from $42 to $48 for the company.