With the drumbeat of doom coming out of Europe lately, we could use a bit of good news from the equipment sector. Despite a light fiscal Q1, Ciena (NASDAQ:CIEN, news, filings) came through this morning with a very nice quarter, announcing their unaudited fiscal Q2 numbers (through 4/30). Yep, they crushed both revenue and EPS estimates for once. Here are the numbers in some context:
|$ in millions||FQ2/11||FQ3/11||FQ4/12||FQ1/12||FQ2/12||FQ3/12(guidance)|
|-Carrier Ethernet Solutions||30.9||40.5||28.8||21.9||30.6|
|-Software and Services||81.3||87.6||89.3||85.1||98.0|
|Adj. OPEX||186.0||175.2||180.8||175.4||172.9||low-mid 180s|
Revenues: Guidance had been for $435-460 while analyst had settled down just below the midpoint of that range. They obviously had a big packet-optical transport quarter as well as extra success in software and services. Looking forward, their guidance of $455-485 for fiscal Q3 straddles analyst expectations of $471.
Margins & Earnings: Adjusted non-GAAP gross margins fell just below 40% this quarter, while they continued to guide to the same level for Q3. Meanwhile, the extra revenues helped boost adjusted earnings per share into positive territory to $0.04, while the street had been looking for them to lose that much.
This seems to put them in a good position for the second half, and perhaps puts to rest a few worries - the stock had been off 25% over the last month or so.
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