& cplSiteName &

Ericsson Gives Ciena a Boost

Ray Le Maistre
6/1/2006
50%
50%

Ciena Corp. (NYSE: CIEN) sent out a big "Thank You" to Ericsson AB (Nasdaq: ERIC) today as it exceeded second quarter expectations and saw its share price edge up 15 cents, nearly 3.5 percent, to $4.45 in morning trading.

Ciena reported revenues of $131.2 million, up 26 percent from a year earlier, and a net loss of $1.9 million, or $0.00 (nil) per share, a considerable improvement on the $74.8 million loss (13 cents per share) from a year ago.

After one-time items, Ciena recorded an adjusted net income of $3.6 or 1 cent per share. Analysts, on average, had expected an adjusted net loss of $0.01 per share from revenues of $129.1 million.

So what's Ericsson got to do with it? Well, Ciena had three customers that contributed more than 10 percent of revenues in the second quarter – two North American carriers – not directly named but obtusely identified as AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ) – and one international channel partner, which was the Swedish vendor.

That means in the three months leading to April 30, 2006, Ericsson contributed more than $13.1 million in revenues to Ciena. Ericsson hasn't previously been a 10 percent-plus customer.

On today's conference call, Ciena management said Ericsson is selling almost a full range of Ciena equipment, but sales of the multiservice CN 4200 FlexSelect platform account for the majority. Ericsson is the sales channel partner for the 4200's deployment at Swisscom AG (NYSE: SCM). (See Ciena Claims DWDM Coup.)

The 4200 has been particularly popular in Europe, where BT Group plc (NYSE: BT; London: BTA) is another customer. (See Ciena Launches Mini CN 4200, Ciena Wins in Slovenia, Ciena Wins in Denmark, and Ciena Finalizes BT Agreement.)

Those wins helped push revenues from the 4200 to $12 million in the second quarter, up from $2 million in the previous three months. And CEO Gary Smith says Ciena's gearing up its supply chain for quarterly sales of $40 million for the 4200 product. He says the technology is being used by a broad range of customers, including cable operators, government institutions and enterprises, as well as traditional telecom operators.

According to Smith, 4200 revenues are expected to grow sequentially and hit the $40 million mark in early to mid 2007.

The success of that product, the first based on the FlexSelect DWDM platform unveiled a year ago, means there will be further product launches in the near future in addition to the smaller version of the 4200 (the CN 4200 MC) launched a few weeks ago. (See Ciena Shrinks Its Hot CN 4200 and Ciena Launches FlexSelect.)

Smith reports that there will be further expansion of the 4200 product, while CTO Steve Alexander told analysts on today's conference call that Ciena will be "rolling out additional features of FlexSelect in the next few quarters" to meet the growing needs of carriers that want to migrate from their existing networks to next generation architectures, but can't predict how quickly they will want to scale down or ramp up particular technologies.

"FlexSelect customers don't need to know the timescales for migration – they only need to know they will eventually migrate," stated the CTO, who added that the CN 4200MC was just the first of a number of new products "you'll be hearing about soon."

Ciena's CFO Joe Chinnici also looked into his crystal ball, telling analysts that Ciena was on course to record third quarter revenues between 7 and 10 percent higher than the second quarter, setting the range between $140.4 million and $144.3 million. On average, analysts had expected third quarter revenues of $137.6 million.

Ciena reported higher than normal gross margins in the second quarter of 48 percent, with Smith saying the company should settle down to an average quarter-by-quarter gross margin rate in the mid forties. He noted that a year ago Ciena reported a gross margin of 26 percent.

— Ray Le Maistre, International News Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
materialgirl
50%
50%
materialgirl,
User Rank: Light Beer
12/5/2012 | 3:52:47 AM
re: Ericsson Gives Ciena a Boost
If the engineers on the 4200 are all gone, how long will these sales last? Why would anyone base a network build on a box with no sustaining engineering?
Honestly
50%
50%
Honestly,
User Rank: Light Beer
12/5/2012 | 3:52:45 AM
re: Ericsson Gives Ciena a Boost
Girly, can't you find something else to do. Who do you work for.? Safe to say not Ciena. They had a great qtr and the space as was seen in SCMR's report is on the comeback.

Does not appear that engineering is a problem, in fact they are rolling, so chill.
materialgirl
50%
50%
materialgirl,
User Rank: Light Beer
12/5/2012 | 3:52:11 AM
re: Ericsson Gives Ciena a Boost
Honestly,
When will you grow up and learn to keep your personal gender problems off these message boards? The engineers are evidentally gone, so why trust one quarter's numbers?
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Huawei Video Resource Center
Huawei Will Accelerate the Spread of the Video Business

2|27|17   |     |   (0) comments


What is the future of the booming video business? What changes will happen to the video industry chain in the future? Hunter Hu, VP of Huawei Video Product Line, shares his viewpoints and explains how Huawei can be an enabler and accelerate the spread of the video business.
LRTV Huawei Video Resource Center
Frost & Sullivan's Jonas Zelba on Going Beyond Connectivity

2|27|17   |     |   (0) comments


Telecom operators across the globe are trying to understand what can they offer beyond connectivity. Operators are already introducing new and innovative services but they are faced with challenges due to unclear business models. Jonas highlights that no one operator can offer all the services itself. Operators in the Middle East should look within their ecosystem ...
LRTV Huawei Video Resource Center
IDC's Paul Black on Cloudification

2|27|17   |     |   (0) comments


Paul Black from IDC shares his insights on how cloudification is expected to combile all aspects of digital transformation.
LRTV Huawei Video Resource Center
Industry Expert Michael Howard Talks About Cloud Native

2|27|17   |     |   (0) comments


Cloud Native is a really nice term and a lot of people are using it. But most of them have their own definition of what Cloud Native means. Michael Howard offers his take on the terminology.
LRTV Custom TV
4.5G Evolution: Peter Zhou on Advanced MIMO Technologies & 5G Business Prep

2|25|17   |     |   (0) comments


In the process of service transformation, operators need to catch three major opportunities and start deploying in 4.5G networks, such as video, household broadband access and digital transformation of vertical industries. 5G is coming. Operators don't need to wait for it to happen but should progressively deploy 4.5G networks by introducing 5G-oriented ...
LRTV Custom TV
What WTTX Can Deliver

2|23|17   |     |   (0) comments


Mohamed Madkour explains the benefits of WTTX while Dimitris Mavrakis discusses the challenges of delivering home broadband access.
LRTV Custom TV
Huawei on Mobile Broadband

2|23|17   |     |   (0) comments


Mohamed Madkour shares his vision on MBB for the next three years.
LRTV Custom TV
Analysys Mason Talks About the Future of Digital Operations

2|23|17   |     |   (0) comments


The future of digital operations has three key aspects: 1. Highly automated operations for both service and network; 2. Highly converged BSS/OSS for business and resources; 3. Highly merged management and control for real-time cloud native operations.
LRTV Interviews
Software Trends in the Telecom Sector

2|23|17   |   03:40   |   (0) comments


Heavy Reading senior analyst James Crawshaw talks with Telecoms.com Editorial Director Scott Bicheno about trends and developments in the telecoms software sector and what to expect at MWC 2017.
LRTV Custom TV
Huawei's Pre-MWC Analyst Briefing 2017 Highlights

2|22|17   |     |   (0) comments


Huawei shares its vision for this year's MWC.
LRTV Interviews
MWC17: 5G, Cloud RAN & More

2|21|17   |   04:35   |   (0) comments


Ovum Senior Analyst Julian Bright talks to Scott Bicheno from Telecoms.com about all things MWC, including Cloud RAN, Huawei's pitch to the industry and the road to 5G.
LRTV Interviews
MWC 2017's Key 2-Letter Terms

2|20|17   |   08:29   |   (1) comment


5G, AI, VR... these are just some of the two-letter terms that will dominate show-floor chat at MWC 2017 in Barcelona, according to these two blow-hards (a.k.a. Scott Bicheno of Telecoms.com and Light Reading's Ray Le Maistre). And then there's PB...
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Uber's HR Nightmare: Company Investigates Sexual Harassment Claims
Sarah Thomas, Director, Women in Comms, 2/21/2017
Broadband Has a Problem on the Pole
Mari Silbey, Senior Editor, Cable/Video, 2/21/2017
Verizon to Start Fixed 5G Customer Trials in April
Dan Jones, Mobile Editor, 2/22/2017
Cloud Rains on HPE Earnings
Mitch Wagner, Editor, Enterprise Cloud, 2/24/2017
Verizon Fixed 5G Tests to Top 3Gbit/s?
Dan Jones, Mobile Editor, 2/23/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
No One Likes This Click Here
Take a hint!
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.