Ciena fell $3.22, or 18 percent, to $14.75 on pre-open volume of 2.4 million shares. The optical networking company said it intends to take advantage of current market uncertainty by pursuing a strategy of sustained investment in its business, rather one of retrenching like its industry peers. "Short-term, given the uncertainty in the market and the resulting unpredictability of quarterly revenues, our sustained investment strategy means that we will incur operating losses," said Gary Smith, Ciena's chief executive. See full story.
Separately, the company reported fiscal fourth-quarter earnings, excluding charges, of a nickel a share and revenue of $367.8 million, versus analyst expectations of 5 cents a share and $369.3 million, respectively.