September 1, 2011 / 11:49 AM / 9 years ago

UPDATE 1-Ciena posts surprise Q3 adj profit as margins improve

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* Q3 rev 435.3 mln VS est $443.9 mln

* Q3 adj EPS $0.08 vs est. loss/shr $0.08

* Sees Q4 rev $440-$460 mln vs est $474.3 mln

Sept 1 (Reuters) - Communications equipment maker Ciena Corp’s posted a surprise quarterly adjusted profit as reduced operating costs helped boost margins, sending its shares up 4 percent in pre-market trading.

For the third quarter, Ciena’s loss narrowed to $31.5 million, or 33 cents a share, from $109.9 million, or $1.18 a share, last year.

Excluding items, the company earned 8 cents a share, while analysts had expected a loss of 8 cents a share.

“Our third quarter results ... included a favorable product mix and reduced operating expense to achieve an as-adjusted operating profit,” Chief Executive Gary Smith said in a statement.

Third-quarter revenue rose nearly 12 percent to $435.3 million, but missed market expectations of $443.9 million.

The company has been hurt by lower demand from mobile and internet network companies.

Ciena, which makes network switches used by mobile carriers to handle data on their networks, expects fourth-quarter revenue of $440-$460 million, while analysts were looking for $474.3 million.

The company’s shares were up 4 percent at $12.72 in pre-market trading on Thursday. They closed at $12.24 on Wednesday on Nasdaq.

Reporting by Himank Sharma in Bangalore; Editing by Viraj Nair

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