Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

JP Morgan Lowers Ciena to Underweight


JP Morgan downgraded Ciena (CIEN) to underweight from neutral.

Analyst Ehud Gelblum says the negative preannouncement is Ciena's second in the last three quarters. He notes the $75 million in revenue is 22% below his $95.8 million estimate, well below the implied guidance of "up to 30%." He says the 7-cent to 8-cent third-quarter loss is in line with guidance.

Gelblum says Ciena's core business -- optical-networking manufacturing -- has apparently fallen off considerably. He widened the 29-cent fiscal 2004 (Oct) loss estimate to a 31-cent loss. While he believes a move away from the core optical business is strategically correct, he doesn't think current a revenue opportunity is diverse enough to support the operating model with a quarterly revenue breakeven level of about $185 million.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus