Sycamore Networks Posts Better-Than-Expected Earnings
By Victoria Sayasone

Despite reporting earnings that beat analysts estimates by 2 cents, shares in leading optical component maker Sycamore Networks plummeted more than 12 percent Friday.

Before the market close Thursday, the company posted net income of $11.7 million, or 5 cents per share, excluding special items, up from a loss of $5.5 million, or 4 cents a share a year ago.

First Call's earnings consensus for Sycamore Networks was 3 cents per share.

The networking provider's fiscal third quarter revenues jumped to $59.2 million, a 104 percent increase from second quarter's $29 million

"Sycamore's financial and operational results for the third quarter exceeded our expectations," said Dan Smith, Sycamore's president and CEO, in a statement.

Sycamore Networks currently has eight customers, with Williams Communications Group providing most of its business. Smith said in a conference call with analysts he expects to add one or two new customers every quarter.

Lucent (LU), Nortel Networks (NT) and Ciena (CIEN) are Sycamore's major competitors in the optical networking arena.

Shares in Sycamore Networks (SCMR) fell $11.31, or 12.3 percent, to $80.94.