Ciena Reports Q2 Revenue of $144 Million, Impairment Charge of $455 Million

For its second fiscal quarter ended April 30, 2009, Ciena reported revenue of $144.2 million, compared to fiscal first quarter 2009 revenue of $167.4 million, and $242.2 million for the same period last year. Ciena's net loss (GAAP) for the quarter was $(503.2) million, or $(5.53) per common share. This compares to fiscal first quarter 2009 GAAP net loss of $(24.8) million, or $(0.27) per common share, and a reported GAAP net income of $23.8 million, or $0.23 per diluted common share, for the same period a year ago.


Ciena's GAAP net loss for the fiscal second quarter includes a non-cash charge of $455.7 million for impairment of goodwill, which represents the total book value of the company's goodwill on its balance sheet.


Ciena's adjusted (non-GAAP) net loss for the fiscal second quarter 2009 was $(22.5) million, or $(0.25) per common share. This compares to fiscal first quarter 2009 adjusted (non-GAAP) net loss of $(8.3) million, or $(0.09) per common share, and adjusted (non-GAAP) net income of $42.3 million, or $0.40 per diluted common share for the fiscal second quarter 2008.


"Our fiscal second quarter was particularly challenging, reflecting the difficult macro and industry environment and continued delays in customer spending," said Gary Smith, Ciena's CEO and president. "While recent service providers' public commentary about expected annual capital expenditures has given the industry reason to be more optimistic about the second half of the year, our customers continue to spend cautiously, and as a result, our visibility remains limited. However, based on our direct conversations with customers and supported by trends we are seeing currently in the business, including recently improved order flow, we expect to deliver sequential revenue growth in our fiscal third quarter."http://www.ciena.com/investors