Investors have been waiting a while to see a sustained rebound in shares of optical networking specialist Ciena (Nasdaq:CIEN). Although this one-time tech darling has given bargain-hunters a few good recovery pops in recent years, the shares are just a pale shadow of what they used to be. Unfortunately for investors, it is hard to see how the company will build enough of a technology buffer, to ever again reap the sort of margins that will make this a winning tech stock holding.
A Decent End to the Fiscal Year
Although Tier 1 telecom spending has slowed recently, Ciena still managed to produce a decent result. Revenue rose almost 5% on a sequential basis and 9% on an annual comparison, as good performance in optical transport offset flat results in switching and pronounced weakness in CESD. Looking at the major customer data, it looks like AT&T (NYSE:T) has pulled back on CESD spending and Verizon (NYSE:VZ) has not dramatically picked up its orders.
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