Ciena Tops Estimates for Fiscal Q2

With its off-quarter report, Ciena often gives us an look at how things are going in the intermission between the regular earnings seasons.  This quarter they had a pretty good time, it seems, topping analyst estimates rather easily and gaining a pre-market boost for the share price.

Revenues checked in at $707M, up from $67M from the same period last year and well above the composite analyst number of $695M.  Adjusted earnings per share was $0.45, up 11 cents from the same period last year and 8 cents above projections.

Most of the boost came from converged packet optical sales, more than offsetting declines from legacy gear.  Software and related sales were up as well over the same period last year, but down slightly sequentially, while global services  was relatively steady.  Geographically, demand was light in Latin America, but strong in North America, Europe and especially Asia-Pacific.

Looking ahead, Ciena projects fiscal Q3 revenue of $710-740M, which straddled what analysts seemed to be pointing toward.  Adjusted gross margin is expected to be in the mid-40% range while adjusted opex will be about $235M, neither of which will surprise anyone either.

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Categories: Financials · Telecom Equipment