Ciena Beats the Street
Revenues for the quarter, which ended January 31, were $227.4 million, up 5 percent sequentially, and 38 percent higher than the $165.1 million reported a year earlier. Gross margins climbed slightly to 51 percent from 50.5 percent in the previous quarter.
Ciena reported GAAP net income of $28.8 million, or 28 cents per share, compared with $11.1 million, or 12 cents a share, in the year-ago quarter.
Non-GAAP net income -- earnings before certain costs, such as share-based compensation -- hit $49.6 million, or 47 cents per share, compared with $20.1 million, or 22 cents per share, a year ago.
Analysts had expected revenues of $225.6 million, non-GAAP net income of 40 cents per share, and gross margins of 48.8 percent, according to Thomson Financial .
Ciena cited strong takeup of its converged optical and Ethernet products as one reason for its sales growth.
Ciena has reported strong momentum in recent quarters, especially in some of its larger customers. Last year, the company announced that it would be extending its reach in the BT Group plc (NYSE: BT; London: BTA) 21CN project by providing the carrier with access equipment. (See Ciena Takes ANDA Into 21CN and Ciena Wins 21CN Access Deal.)
Ciena also announced a new multiyear contract with AT&T Inc. (NYSE: T), which recently committed to spending $1 billion in global capex. (See AT&T's $1B Global Capex Pledge.)
However, the AT&T deal came as a result of Ciena's $300 million acquisition of Ethernet access firm World Wide Packets Inc. , for which some analysts think the firm paid too much. (See Ciena Completes WWP Buy, Ciena Buys WWP, Ciena Takes Out World Wide Packets, Did Ciena Overpay for WWP?, Who Wanted WWP?, and PBT Key to Ciena Acquisition.)
— Ryan Lawler, Reporter, Light Reading