* Expects first-quarter revenue of $435 mln-$460 mln vs est
* Fourth-quarter adj loss of $0.7/shr vs est loss of $0.6
* Fourth-quarter revenue up 2 pct to $465.5 mln vs est
* Shares rise as much as 5.5 pct
By Chandni Doulatramani
Dec 13 Network equipment maker Ciena Corp
said its operating performance would improve in 2013 as
telecom carriers boost spending to upgrade their networks after
months of sluggish growth, sending its shares up as much as 5.5
Telecom carriers are rolling out their 4G LTE networks and
are looking at optical equipment providers like Ciena who
provide a key component to manage costs and modernize networks.
AT&T Inc, which accounted for about 15.5 percent of
Ciena's fiscal 2011 revenue, said last month it will boost
capital spending by about 16 percent to $22 billion a year for
the next three years to upgrade its wireless and wireline
Ciena's backlog rose 25 percent to $900 million at the end
of the fiscal year, Chief Financial Officer Jim Moylan said on a
conference call with analysts on Thursday.
Ciena's shares were up 1.9 percent at $15.87 on the Nasdaq
in afternoon trading.
Investors could be positive about operating expenses going
up in 2013, indicating higher demand, Mizuho Securities analyst
Joanna Makris said.
The company said operating expense would be higher in 2013
as it would hire more sales staff and raise employee
Ciena said it expects first-quarter revenue of between $435
million and $460 million. Analysts were expecting revenue of
$458.6 million, according to Thomson Reuters I/B/E/S.
Shares of rival Finisar Corp were also up about 5
percent at $15.13 on the Nasdaq.
WEAK FOURTH QUARTER
Ciena's orders reached a new high in the fourth quarter and
totaled $2 billion for the full year.
Net loss widened to $38.8 million, or 39 cents per share
from $22.3 million, or 23 cents per share, a year earlier.
Excluding items, the company, which competes with Juniper
Networks, Alcatel-Lucent and Infinera
, lost 7 cents per share.
Revenue rose 2 percent to $465.5 million.
Analysts had expected an adjusted loss of 6 cents per share
on revenue of $468.3 million.
Revenue from the packet-optical transport business, fell
about 2 percent to $289.4 million. Revenue from its
packet-optical switching business halved to $20.5 million.