Ciena Keeps Its Foot on the Gas in Q2

For its fiscal quarter ended April 30, Ciena showed more growth and some customer diversification, while continuing to add to its software portfolio.

Phil Harvey, Editor-in-Chief

June 6, 2019

2 Min Read
Ciena Keeps Its Foot on the Gas in Q2

Ciena's just not slowing down.

The networking and software vendor reported earnings of $52.7 million, or 33 cents a share, on revenues of $865 million for its second quarter -- the revenue and earnings numbers comfortably beat Wall Street's expectations.

The vendor's stock, as of around 10 a.m. ET, was up $8.50 (23.6%) to $44.38.

The company's software and software-related services made up about 5.4% of revenue for the quarter. Its global services group, which includes installation, design and support, contributed 14% of the company's quarterly revenue.

The smaller part of Ciena's business is still the one to watch. The company has made several key software acquisitions to help customers scale, automate and better manage their networks.

Though most of Ciena's revenues are from sales of packet-optical switching and transport gear, the company has broadened its customer base. Ciena said it has brought in just over one-third of its revenue from "non-telcos," with web-scale players and cloud providers contributed around 18% of its total quarterly revenue. That's worth noting because Ciena had two customers (presumably telcos) that, combined, made up 25% of its revenue.

What's next? More of the same. The company said it expects 6% to 8% revenue growth for the next three years, with over 20% adjusted earnings per share growth over the same period.

Few companies in this space are showing such continued growth and consistency. Someone should give them an award.

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Phil Harvey, US Bureau Chief, Light Reading

About the Author(s)

Phil Harvey

Editor-in-Chief, Light Reading

Phil Harvey has been a Light Reading writer and editor for more than 18 years combined. He began his second tour as the site's chief editor in April 2020.

His interest in speed and scale means he often covers optical networking and the foundational technologies powering the modern Internet.

Harvey covered networking, Internet infrastructure and dot-com mania in the late 90s for Silicon Valley magazines like UPSIDE and Red Herring before joining Light Reading (for the first time) in late 2000.

After moving to the Republic of Texas, Harvey spent eight years as a contributing tech writer for D CEO magazine, producing columns about tech advances in everything from supercomputing to cellphone recycling.

Harvey is an avid photographer and camera collector – if you accept that compulsive shopping and "collecting" are the same.

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