Lucent, Nortel and Ciena have introduced "metro" products that will bring optical networking to local markets.
Ciena this morning reduced its guidance for the fiscal first quarter ended January 31.
FORBES: Ciena Cuts Revenue Guidance For FY Q1; Shares Take A Hit
Ciena also has some appealing value characteristics, though pessimists could still argue that it's a bloated beast.
Not participating in the move today: Ciena (CIEN), which reports earnings on Monday before the market opens.
Ciena (CIEN) shares are trading sharply higher on strong results for its fiscal fourth quarter ended October.
FORBES: Ciena Spikes On Strong FY Q4; A Play On Insatiable Bandwidth Demand
Ciena shares are trading higher Wednesday despite a weaker-than-expected report for its fiscal first quarter ended January 31.
FORBES: Ciena FY Q1 Misses; But Stock Rallies Anyway On Outlook
Ciena shares are trading higher Thursday morning on better-than-expected results for its fiscal second quarter ended April 30.
The group is trading sharply lower following disappointing guidance this morning from optical networking component provider Ciena (CIEN).
FORBES: Optical Stocks Slide On Ciena's Weak April Quarter Outlook
This feat (called wave-division multiplexing, or WDM) was the basis of Ciena's founding.
Worldcom and Sprint helped fund development of this innovation at Ciena Corp. and began deploying it two years ago.
In the mid-1990s Ciena, Lucent and Nortel introduced boxes that vastly increased the volume of data a fiber can carry.
Information technology is a relatively safe sector but fiber-optic gear outfit Ciena is four times as risky as the market as a whole.
In fact, Ciena has bested the consensus estimate in three of the prior four reporting periods, with an average upside surprise of nearly 25%.
Note that Ciena (CIEN), another player in optical networking, recently spiked on strong results for its October quarter, as the company cited strong fundamental demand.
As he notes, sentiment on the sector has been battered by a weak financial report from Ciena and disappointing guidance from Finisar, among other factors.
Gurus also got rid of optical networking companies Ciena Broadwing.
"Cisco's acquisitions might make sense in a microcosm, but they've reset" prices in the industry, says Ciena Chief Executive Patrick Nettles, whose own stock is up over 200% this year.
"Cisco's acquisitions might make sense in a microcosm, but they've reset" prices in the industry, says Ciena CEO Patrick Nettles, whose own stock is up more than 200% this year.
Morgan Stanley Dean Witter advised Ciena on the transaction.
These include Ericsson (ERIC), Alcatel-Lucent (ALU), Nokia Siemens Networks which is a joint venture of Nokia (NOK) and Siemens (SI), Cisco Systems (CSCO), Juniper Networks (JNPR), Ciena (CIEN), and Tellabs (TLAB).
Ciena shares are trading sharply lower Thursday morning after the networking equipment company posted mixed results for the fiscal third quarter ended July 31, and provided FY Q4 guidance that fell short of Street expectations.
As I noted yesterday, Oclaro (OCLR) after the close on Tuesday issued an earnings warning, news that followed similarly downbeat reports from Ciena (CIEN), Finisar (FNSR) and EXFO (EXFO).
Investors are clearly believers in large part because of the track record of Corvis' founder, David Huber, who also started Ciena (nasdaq: CIEN - news - people), a pioneer in new optical technology now used in nearly every telecommunications network.
Ciena says the deal would begin to add to pro forma earnings in the second-half of fiscal 2002 but would dilute pro forma earnings for fiscal 2001 by 19 cents to 22 cents, excluding one-time charges and amortization of intangibles and deferred stock-compensation costs.
Irrational exuberance and irrational pessimism is more pronounced in momentum investing whereby investors chase after popular stocks networking in the late 1990s like JDS Uniphase (NASDAQ:JDSU), Ciena (NASDAQ:CIEN), Cisco Systems (NASDAQ:CSCO), and Lucent-Alcatel (NYSE:ALU) that now trade at a fraction of their 2001 highs.
After almost a decade of fast growth, the leadership of Cisco Systems (NASDAQ: CSCO), Ciena Corp ( CIEN), JDS Uniphase ( JDSU), Corning ( GLW) and Ariba Inc. ( ARBA), and Lucent-Alcatel (NYSE: ALU) became complacent and arrogant with success, setting the stage for the eventual slow-down and downfall to irrelevance.
This means that, unless Netflix finds some magic way to fix its model or being acquired by someone, it is doomed to follow the path to irrelevance, as did Dell Computer (NASDAQ: Dell), Cisco Systems (NASDAQ:CSCO), JDS Uniphase (NASDAQ:JDSU), Ciena Corporation (NASDAQ:CIEN), and Lucent Alcatel (NYSE:ALU) in the last decade.
FORBES: Netflix's Strategy Flip-Flops: Courage or Recklessness?
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