Ciena Turns That Frown Upside Down

June 5th, 2014 by · Leave a Comment

Back in March, Ciena posted a decent fiscal Q1 with what the street (but not I) deemed weak estimates after which the stock suffered for a quarter.  Today it is surging in the pre-market after the packet-optical vendor posted its fiscal Q2 results, hitting their numbers easily and posting guidance for next quarter above the expected range.

$ in millions FQ2/13 FQ3/13 FQ4/13 FQ1/14 FQ2/14 FQ3/14
(guidance)
-Converged Packet-Optical 294.3 302.0 350.9 333.4 356.8
-Packet Networking 54.2 61.6 61.2 51.7 66.5
-Optical Transport 57.4 66.2 52.6 40.1 29.6
-Software and Services 101.8 108.6 118.7 108.5 107.1
Revenue 507.7 538.4 583.4 533.7 560.0 585-615
Adj. OPEX 197.4 190.4 210.5 199.8 206.3 ~210
Adj. GM% 42.5% 43.6% 40.8 43.4% 41.3% low-mid 40%s
Adj. EPS 0.02 0.23 0.16 0.13 0.17

Revenues of $560M is what the analysts had expected for midpoint of FQ1 guidance back in March, they just got it a bit later.  But for next quarter they were looking for $583, which was below the entire guided range of $585-615.   Adjusted earnings per share came in four cents above the composite analyst number.

In terms of products, converged packet-optical and packet networking advanced strongly, while legacy optical transport pulled back further.  The industry pivot to 100G is clearly well underway, as if we needed further evidence.   I'll be listening to the call to hear further details on demand.

 

 

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Categories: Financials · Telecom Equipment

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