Galaxy Z Flip 4 Preorder Quest 2: Still the Best Student Internet Discounts Best 55-Inch TV Galaxy Z Fold 4 Preorder Nintendo Switch OLED Review Foldable iPhone? 41% Off 43-Inch Amazon Fire TV
Want CNET to notify you of price drops and the latest stories?
No, thank you

Sycamore Networks slips despite strong 4Q earnings

Sycamore Networks lost 5 3/8 to 152 5/8 Friday despite easily topping analysts' estimates in its fourth quarter.

In the quarter, Sycamore (Nasdaq: SCMR) earned $20.4 million, or 8 cents a share, on sales of $90.4 million.

First Call Corp. consensus expected it to earn 6 cents a share in the quarter.

The $90.4 million in sales marks a 698 percent jump from the year-ago quarter when it lost $6.4 million, or 4 cents a share, on sales of $11.3 million.

"We are extremely pleased with our fourth quarter results and solid performance in our first year as a public company," said CEO Dan Smith in a prepared release. "We look forward to further broadening the range and reach of our product portfolio to create new optical service and technology value for our customers."

On Friday, Robertson Stephens analyst reiterated his "buy" recommendation on the stock.

"The upside surprise to revenues in the quarter was driven by continued strong product acceptance from existing customers and the addition of new customers," Johnson wrote in a research note. "As a direct consequence of the strong financial performance during the quarter, we are raising our estimates for fiscal 2001 and initiating estimates for 2002."

Last quarter, Sycamore beat the Street when it posted a profit of $11.7 million, or 5 cents a share, on sales of $59.2 million.

Its shares raced up to a 52-week high of 199 1/2 in March before plunging to a low of 47 1/4 in April.

Twelve of the 14 analysts following the stock rate it either a "buy" or "strong buy."

First Call Corp. consensus expects Sycamore to earn 28 cents a share in fiscal 2001.