The Curious Case Of Ciena’s Sell Off
Ciena (CIEN) reported what appeared to be strong earnings. Revenue rose 37% from the quarter last year to $165 million. But, the sequential increase from the immediately previous quarter was only 3%. The company forecast sequential growth for the current…
Ciena (CIEN) reported what appeared to be strong earnings. Revenue rose 37% from the quarter last year to $165 million. But, the sequential increase from the immediately previous quarter was only 3%. The company forecast sequential growth for the current quarter as low as 5%.
Ciena makes equipment for the telecom industry and its is the type of product that helps them build out "triple play" services with voice, broadband, and TV.
So, the market’s question is why Ciena, a company in an industry at the peak of its build-out, is growing so slowly. The company has not supplied an answer, but the stock is off 9% before the market, and that means Wall St. doesn’t think Ciena is getting its share of the boom.
Douglas A. McIntyre
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
