UPDATE 1-Network gear maker Ciena rides on raised carrier spending
* Expects fourth-quarter revenue $550 mln-$580 mln vs est $551.4 mln
* Third-quarter adjusted profit/share $0.23 vs est $0.16
* Third-quarter revenue $538.4 mln vs est $533.5 mln
* Shares up as much as 11 pct premarket (Adds details, analysts' estimates; updates share movement)
Sept 4 (Reuters) - Network equipment maker Ciena Corp forecast strong revenue for the current quarter as it gains from a recovery in spending by telecom carriers, its biggest customers.
Ciena shares jumped 11 percent in premarket trading on the outlook and better-than-expected results.
The company, whose biggest customer last year was AT&T Inc , forecast fourth-quarter revenue of $550 million to $580 million. Analysts on average were expecting $551.4 million, according to Thomson Reuters I/B/E/S.
Major U.S. telecom companies are upgrading their wireless and wireline networks, creating a big demand for network gear made by Ciena and rivals such as Juniper Networks Inc.
AT&T said in November it would boost capital spending by 16 percent to $22 billion a year for the next three years. Verizon Communications Inc, also one of Ciena's top customers, boosted its capital spending budget in July.
Ciena's net loss narrowed to $1.2 million, or 1 cent per share, in the third quarter, helped by lower costs. Gross margin rose to 42.4 percent from 38.2 percent.
Revenue rose 14 percent to $538.4 million.
Excluding items, the company posted a profit of 23 cents per share. Analysts on average had expected earnings of 16 cents on revenue of $533.5 million.
Shares of the company, which makes equipment that expands the capacity of data transfer over fiber-optic networks, were trading at $22.88 in premarket trading on Wednesday. (Reporting by Neha Alawadhi in Bangalore; Editing by Joyjeet Das and Saumyadeb Chakrabarty)
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