Ciena's latest financial numbers, reported early Thursday, haven't set the markets alight, but there's reason for long-serving Gary Smith and his team to be relatively happy.
The optical transport vendor reported revenues for the three months to January 31 of $533.7 million, an impressive 17.8% increase compared with a year earlier, but pretty much in line with what was expected. Its net profit after one-time items (the non-GAAP figure) was $13.7 million, or 13 cents per share, which was better than Wall Street had expected. (See Ciena Reports Fiscal Q1 Revenues Rise.)
What stood out, though, was the portion of revenues coming from Ciena Corp. (NYSE: CIEN)'s Converged Packet/Optical portfolio (including its 100G gear), which includes its 6500 and 6200 Packet-Optical platforms, 5400 Reconfigurable Switching systems, and CoreDirector multiservice systems. That portfolio generated $333.4 million of revenues, or 62.5% of total sales, up from $240 million (53% of sales) in the same quarter a year earlier -- that's an increase of 39% year-on-year in terms of actual revenues.
At the same time, Ciena's legacy optical transport portfolio generated only $40.1 million in sales (7.5% of the total), down from $57.6 million (12.7% of the total) a year ago.
Ciena, then, is growing its sales with its latest product lines, a healthy position to be in. That position might get stronger if Ericsson AB (Nasdaq: ERIC) helps bring in new sales too. (See Ciena, Ericsson Embark on SDN, Optical Love Affair.) Investors are clearly looking for more, though, as Ciena's share price dipped by $1.20, or 4.7%, to $24.16 by early afternoon trading.
— Ray Le Maistre, Editor-in-Chief, Light Reading