& cplSiteName &

Ciena Swings to Profit

Light Reading
News Analysis
Light Reading
8/30/2007

Boosted by strong sales and gross margins, Ciena Corp. (NYSE: CIEN) realized a profit and beat analysts' expectations in its fiscal third quarter. (See Ciena Reports Q3.)

For the quarter ended July 31, 2007, the optical vendor reported earnings of $28.3 million, or 29 cents a share, on revenues of $205 million. That compares with a loss of $4.3 million, or 5 cents per share, on sales of $137.8 million in the year-ago quarter.

Ciena's revenues grew 5.9 percent sequentially and 34.4 percent year over year, beating Wall Street expectations. Analysts expected quarterly sales of $203.25 million, according to Thomson Financial .

The company also posted strong margins for the quarter, with overall gross margins at 47.7 percent and product gross margins of 53.7 percent. That compares with Wall Street estimates of 44.5 percent.

Excluding certain one-time and non-cash items, the company reported third-quarter earnings of $40 million, or 41 cents per share. That beat analyst expectations for profits of 31 cents per share.

Ciena's third-quarter 2006 results included a restructuring charge of $11 million. Excluding one-time charges, earnings were $20.6 million, or 23 cents per share, in the previous year's third quarter.

Ciena's earnings come in the wake of a number of customer wins in the quarter and continued strong business from existing customers. Earlier in the quarter, the company touted customer wins at JANET ("the UK's education and research network") and AboveNet Inc. (NYSE: ABVT), and talked up business that it had won at BT Group plc (NYSE: BT; London: BTA) as part of that company's 21CN project. (See Janet Deploys Ciena 40G, AboveNet Deploys Ciena, and Ciena Touts BT Deployment.)

Ciena's fiscal third quarter marks continued momentum for the company, which has posted 14 quarters of sequential revenue growth. The company's stock has responded to that growth, rising nearly 40 percent year-to-date.

— Ryan Lawler, Reporter, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
trzwuip
trzwuip
12/5/2012 | 3:03:24 PM
re: Ciena Swings to Profit
welcome back from the dead Ciena. Company cost reduction optimization has come full circle in the last couple of years.
Ryan Lawler
Ryan Lawler
12/5/2012 | 3:03:22 PM
re: Ciena Swings to Profit
Yeah, it looked like a great quarter, but what's up with investors? Can't CIEN have a good earnings announcement without the stock going down?

Anyway, after the earnings call, I got a chance to talk with Gary Smith about the optical market and converged Ethernet, among other things.

The transcript is here: http://www.lightreading.com/do...
Ryan Lawler
Ryan Lawler
12/5/2012 | 3:03:22 PM
re: Ciena Swings to Profit
Yeah, it looked like a great quarter, but what's up with investors? Can't CIEN have a good earnings announcement without the stock going down?

Anyway, after the earnings call, I got a chance to talk with Gary Smith about the optical market and converged Ethernet, among other things.

The transcript is here: http://www.lightreading.com/do...
Featured Video
Upcoming Live Events
October 22, 2019, Los Angeles, CA
November 5, 2019, London, England
November 7, 2019, London, UK
November 14, 2019, Maritim Hotel, Berlin
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
March 16-18, 2020, Embassy Suites, Denver, Colorado
May 18-20, 2020, Irving Convention Center, Dallas, TX
All Upcoming Live Events