Ciena (CIEN) Shares Move Into Positive Territory Despite Jefferies Note
CIEN Hot Sheet
Rating Summary:12 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Shares of Ciena Corp (Nasdaq: CIEN) moved into positive territory and are currently trading up $0.06 (+0.50%) to $12.17.
The stock was hit early in the session on a Jefferies note:
Analyst, George C. Notter, said, "We continue to be concerned that Ciena will be unable to generate the attractive revenue growth and operating margins that many investors are expecting. Industry structure and a significant component of sales from legacy products remain inhibitors in this regard."
Notter also sees lots of volatility in underlying product areas: "By examining the 10-Qs, 10Ks, and filings associated with the Nortel MEN acquisition, we can calculate revenue figures by individual product line for major products like the OME 6500, OM 5100/5200, and the new 5430 platform among others. We calculate OME 6500 revenue at $172.2 million (+46% Q/Q, +44% Y/Y), up versus $118 million in the July quarter and $147 million in April. We assume the volatility is driven by timing of specific customer projects. OM 5200 revenue of $21.8 million (-55% Q/Q, -35% Y/Y) was weaker than we expected after a reasonably strong Q3'11."
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The stock was hit early in the session on a Jefferies note:
Analyst, George C. Notter, said, "We continue to be concerned that Ciena will be unable to generate the attractive revenue growth and operating margins that many investors are expecting. Industry structure and a significant component of sales from legacy products remain inhibitors in this regard."
Notter also sees lots of volatility in underlying product areas: "By examining the 10-Qs, 10Ks, and filings associated with the Nortel MEN acquisition, we can calculate revenue figures by individual product line for major products like the OME 6500, OM 5100/5200, and the new 5430 platform among others. We calculate OME 6500 revenue at $172.2 million (+46% Q/Q, +44% Y/Y), up versus $118 million in the July quarter and $147 million in April. We assume the volatility is driven by timing of specific customer projects. OM 5200 revenue of $21.8 million (-55% Q/Q, -35% Y/Y) was weaker than we expected after a reasonably strong Q3'11."
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