Sycamore Networks Increases Sales but Misses Estimates on Earnings

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Sycamore Networks (NAS: SCMR) reported earnings on Feb. 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 28 (Q2), Sycamore Networks beat expectations on revenues and missed expectations on earnings per share.

Compared with the prior-year quarter, revenue grew and GAAP loss per share improved.

Margins improved across the board.

Revenue details
Sycamore Networks reported revenue of $13.2 million. The one analyst polled by S&P Capital IQ foresaw revenue of $11.9 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $12.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.10. The three earnings estimates compiled by S&P Capital IQ anticipated -$0.09 per share on the same basis. GAAP EPS were -$0.13 for Q2 against -$0.12 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 58.8%, 90 basis points better than the prior-year quarter. Operating margin was -30.3%, 150 basis points better than the prior-year quarter. Net margin was -28.0%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $12.0 million. On the bottom line, the average EPS estimate is -$0.11.

Next year's average estimate for revenue is $54.1 million. The average EPS estimate is -$0.35.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 122 members out of 139 rating the stock outperform, and 17 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Sycamore Networks a green thumbs-up, and five 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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At the time this article was published

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