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