Ciena pre-announced revenues for its fiscal first quarter ended January 31, 2012 to be approximately $415 million, compared to the company’s previous expectation of $435 to $455 million. Adjusted (non-GAAP) gross margin is expected to be in-line with the previous guidance of the low 40s percent range.
“We are disappointed in our expected first quarter revenue results,�? said Gary Smith, president and CEO of Ciena. “As previously stated, we continue to experience longer customer deployment and revenue recognition cycles as a result of our greater mix of international and solutions-oriented sales. When combined with the impact of the seasonality of our business and the calendar timing of our first fiscal quarter, this trend had a more significant effect than previously anticipated, and resulted in revenue recognition delays on a few solutions-oriented projects with new customers, especially in international markets.�?
Smith continued, “However, we believe that first quarter revenue results are not reflective of the underlying strength of the business and ongoing customer demand. Specifically, product orders grew approximately 20 percent year-on-year, shipments were strong, and our ending backlog increased for the quarter. And, as evidence of our ability to drive operating leverage, we expect to be cash flow positive from operations and to achieve positive free cash flow for the quarter.�?http://www.ciena.com
