The 10-second takeaway
For the quarter ended July 31 (Q4), Sycamore Networks crushed expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share shrank.
Margins expanded across the board.
Sycamore Networks booked revenue of $16.8 million. The one analyst polled by S&P Capital IQ looked for a top line of $12.9 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $13.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.03. The two earnings estimates compiled by S&P Capital IQ predicted -$0.14 per share. GAAP EPS were -$0.09 for Q4 against -$0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.3%, 330 basis points better than the prior-year quarter. Operating margin was -12.9%, 1,940 basis points better than the prior-year quarter. Net margin was -15.0%, 1,290 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $10.6 million. On the bottom line, the average EPS estimate is -$0.18.
Next year's average estimate for revenue is $48.8 million. The average EPS estimate is -$0.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 124 members out of 140 rating the stock outperform, and 16 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Sycamore Networks a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sycamore Networks is hold, with an average price target of $28.00.
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