RealTime IT News

Ciena Can't Escape Telecom Woes

Coming on the heels of warnings from JDS Uniphase and ADC Telecom , Ciena could do little to allay fears of a telecom slowdown Thursday, falling 8% despite better than expected results and guidance.

Ciena predicted fiscal fourth-quarter sequential sales growth of as much as 5%, or $160 million, which would beat $156.5 million estimates. But after 16% sequential growth in the third quarter, traders might have been expecting even more upside for the fourth quarter.

Ciena also announced a 1-for-7 reverse stock split to escape the sub-$10 doldrums its stock has been in since early 2002.

Other movers Thursday included SeaChange and TiVo , which rose on their results, and LTX , which fell on its earnings.

Stamps.com lost 5% on a Wedbush Morgan downgrade.

The broader market was little changed Thursday despite personal spending and income reports that showed tame inflation and an upbeat assessment of productivity by Fed Chairman Ben Bernanke, as traders awaited Friday's all-important monthly jobs report.

The Nasdaq lost 2 to 2183, the S&P 500 was down half a point to 1303, and the Dow slipped 2 to 11,381. Volume declined to 1.97 billion shares on the NYSE, but rose to 1.77 billion on the Nasdaq. Advancers led 19-12 on the NYSE, and 15-14 on the Nasdaq. Upside volume was 55% on the NYSE, and 37% on the Nasdaq. New highs-new lows were 182-20 on the NYSE, and 104-35 on the Nasdaq.