With the drumbeat of doom coming out of Europe lately, we could use a bit of good news from the equipment sector. Despite a light fiscal Q1, Ciena (NASDAQ:CIEN, news, filings) came through this morning with a very nice quarter, announcing their unaudited fiscal Q2 numbers (through 4/30). Yep, they crushed both revenue and EPS estimates for once. Here are the numbers in some context:
| $ in millions | FQ2/11 | FQ3/11 | FQ4/12 | FQ1/12 | FQ2/12 | FQ3/12(guidance) |
|---|---|---|---|---|---|---|
| -Packet-Optical Transport | 272.6 | 266.5 | 296.2 | 266.3 | 318.0 | |
| -Packet-Optical Switching | 31.3 | 40.7 | 41.2 | 43.4 | 31.0 | |
| -Carrier Ethernet Solutions | 30.9 | 40.5 | 28.8 | 21.9 | 30.6 | |
| -Software and Services | 81.3 | 87.6 | 89.3 | 85.1 | 98.0 | |
| Revenue | 417.9 | 435.3 | 455.5 | 416.7 | 477.6 | 455-485 |
| Adj. OPEX | 186.0 | 175.2 | 180.8 | 175.4 | 172.9 | low-mid 180s |
| Adj. GM% | 41.3% | 44.1% | 43.2% | 41.9% | 39.6% | ~40% |
| Adj. EPS | -0.24 | 0.08 | -0.14 | -0.17 | 0.04 |
Revenues: Guidance had been for $435-460 while analyst had settled down just below the midpoint of that range. They obviously had a big packet-optical transport quarter as well as extra success in software and services. Looking forward, their guidance of $455-485 for fiscal Q3 straddles analyst expectations of $471.
Margins & Earnings: Adjusted non-GAAP gross margins fell just below 40% this quarter, while they continued to guide to the same level for Q3. Meanwhile, the extra revenues helped boost adjusted earnings per share into positive territory to $0.04, while the street had been looking for them to lose that much.
This seems to put them in a good position for the second half, and perhaps puts to rest a few worries – the stock had been off 25% over the last month or so.
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Categories: Financials · Telecom Equipment
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Shockingly good relative to the market.