Why Sycamore Networks Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Sycamore Networks (Nasdaq: SCMR  ) have popped today by as much as 19%, after the company announced preliminary fourth quarter results.

So what: Revenue came in at $16.8 million, well above the Street's estimates of $12.9 million. Full year sales were $57.3 million, also topping estimates. The company said all sales were derived from its intelligent bandwidth management offerings. Total cash and investments are up to $439.4 million.

Now what: Additionally, Sycamore announced that its board has approved a special cash distribution of $10 per share being paid out next month. Full financial results are pending impairment tests, and the company thinks any possible charges would be, at most, $2 million. After these tests are completed, it will release its finalized figures  but, for now, investors seem rather pleased with its top line result and the cash distribution.

Interested in more info on Sycamore Networks? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2025735, ~/Articles/ArticleHandler.aspx, 10/23/2014 7:17:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement