Ciena Posts Loss Amid Lower Demand

Ciena Corp., the third-biggest U.S. maker of fiber-optic network equipment, reported a quarterly net loss as sales tumbled 89% to their lowest level since the company’s 1997 initial public offering.

The loss in its third quarter ended July 31 was $160 million, or 42 cents a share, contrasted with net income of $5.7 million, or 2 cents, a year earlier. Sales slid to $50 million from $458.1 million.

Ciena said revenue would be unchanged or rise slightly this quarter from the third period, missing analysts’ forecasts. Ciena has shed costs in a bid to break even with quarterly sales of $300 million.

Chief Executive Gary Smith said he wasn’t sure when he would meet that goal.

Ciena said it ran through $87.7 million in cash in the third quarter and will lose an additional $145 million to $155 million this period. The decline will continue through fiscal 2003, the Linthicum, Md.-based firm said.

Ciena shares fell 37 cents to $4.12 on Nasdaq.