The optical networking-equipment company warned that the Kovid-19 epidemic was slowing its business, resulting in financial guidance for the current quarter that was well below Wall Street estimates.
For the fiscal third quarter ended August 1, Siena (ticker: CIEN) reported revenue of $ 876.7 million, up 1.7% from a year earlier, and ahead of the Wall Street analyst consensus at $ 971.8 million. The non-GAAP gain was $ 1.06 per share, well above the Street consensus at 83 cents.
The company faces more cautious behavior from customers, and longer equipment installation times as a result of logistic challenges arising from accessing customer sites during an epidemic.
The company said in a presentation prepared for its earnings on Thursday with analysts, “The operating situation has complicated and extended the time needed to deploy and activate new equipment and services with many of our large and long-standing international customers.” Have done. ” “The conditions have made it more challenging for us to win and operate on our new international deals and the customer’s own deadlines.”
The company also stated that “customer uncertainty around macroeconomic conditions is driving more cautious behavior.” It states that “the fundamental drivers over the long term – increasing network traffic, bandwidth demand and adoption of cloud architecture – remain strong.”
CEO Gary Smith said in a statement that market dynamics related to Kovid-19 are likely to “adversely impact for some quarters” in revenue.
Siena shares jumped nearly 27% to $ 44 on Thursday morning, bringing the stock up 3.1% year-to-date.
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Write Eric J. Savitz at [email protected]