CIENA's recent earnings were a familiar storyline for telecom equipment investors: lots of talk of equipment wins leading into disappointing earnings. That's the same storyline we've seen recently with companies like Alcatel-Lucent and Acme Packet, with stocks charts trending down punctuated by huge drops around earnings.
As CIENA tells it, it's getting plenty of wins but telecoms aren't rolling those wins out. In the following video, Senior Technology Analyst Eric Bleeker notes that at least CIENA is (barely) staying cash flow-positive unlike Alcatel. Yet broader challenges to the telecom equipment industry remain. It's not only steep price competition in existing products, but also telecoms not rolling out new deployments that companies like CIENA are counting on for growth. Eric says the best play for investors is keeping their investing dollars in other sectors. Watch the video to see his full thoughts.
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