Ciena (NASDAQ:CIEN, news, filings) surprised the markets yesterday with their fiscal first quarter results, and in a good way. The networking vendor posted an adjusted profit per share of $0.12, far above the composite analyst expectations of a loss of $0.14. Revenues were slightly higher than expected, but it was lower expenses and improving capex trends from carriers that meant the most:
| $ in millions | FQ1/12 | FQ2/12 | FQ3/12 | FQ4/12 | FQ1/13 | FQ2/13 (guidance) |
|---|---|---|---|---|---|---|
| -Converged Packet-Optical | 202.0 | 238.1 | 240.0 | |||
| -Packet Networking | 21.5 | 47.3 | 45.8 | |||
| -Optical Transport | 107.7 | 71.8 | 57.6 | |||
| -Software and Services | 85.5 | 108.3 | 109.7 | |||
| Revenue | 416.7 | 477.6 | 474.1 | 465.5 | 453.1 | 465-495 |
| Adj. OPEX | 175.4 | 172.9 | 175.6 | 191.8 | 176.6 | low 190s |
| Adj. GM% | 41.9% | 39.6% | 39.6% | 42.7% | 44.6% | low 40%s |
| Adj. EPS | -0.17 | 0.04 | -0.04 | -0.07 | 0.12 |
Demand in North America seems to be looking up, while in Europe there is perhaps a bit more stability. With so many 100G deployments now taking shape around the world, things have to be looking up for the kind of gear that Ciena specializes in.
Guidance for revenues bracketed analyst expectations, though with a slight conservative bias. It has now been nearly three years since Ciena took on the task of absorbing Nortel’s MEN division, and the company may finally be ready to demonstrate what it was all for. The company’s stock price finished the day up more than 17%, reaching levels we haven’t seen since recent highs last summer.
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Categories: Financials · Mergers and Acquisitions
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