After a couple years of digesting the former Nortel MEN business, Ciena (NASDAQ:CIEN, news, filings) has been coming on very strong lately. The company's very strong fiscal third quarter was its third such performance in a row, easily beating expectations. Here's a quick table with some context:
|$ in millions||FQ3/12||FQ4/12||FQ1/13||FQ2/13||FQ3/13||FQ4/13
|-Software and Services||107.6||108.3||109.7||101.8||108.6|
|Adj. OPEX||175.6||191.8||176.6||197.4||190.4||high 190s|
|Adj. GM%||39.6%||42.7%||44.6%||42.5%||43.6%||low 40%s|
Revenues were on the high end of guidance and $5M or so above analyst estimates, powered by sequential growth across all product segments. Combined with lower costs and higher margins, that led to adjusted non-GAAP earnings of $0.23 per share, six cents above forecasts.
Looking ahead, Ciena's projected revenue range for fiscal Q4 is for a midpoint of $565M, ahead of expections in the neighborhood of $550M. So far the market likes what it sees, and the stock is up over 10% in premarket trading.