The 10-second takeaway
For the quarter ended April 28 (Q3), Sycamore Networks met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP loss per share expanded.
Margins dropped across the board.
Sycamore Networks logged revenue of $11.9 million. The one analyst polled by S&P Capital IQ wanted to see revenue of $12.0 million on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $11.9 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 -$0.14. The two earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.18 for Q3 versus -$0.14 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 54.2%, 470 basis points worse than the prior-year quarter. Operating margin was -44.0%, 640 basis points worse than the prior-year quarter. Net margin was -42.7%, 780 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $12.9 million.
Next year's average estimate for revenue is $52.2 million. The average EPS estimate is -$0.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 118 members out of 135 rating the stock outperform, and 17 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 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 $37.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.