After a couple years of digesting the former Nortel MEN business, Ciena (NASDAQ:CIEN, news, filings) has been coming on very strong lately. The company’s very strong fiscal third quarter was its third such performance in a row, easily beating expectations. Here’s a quick table with some context:
| $ in millions | FQ3/12 | FQ4/12 | FQ1/13 | FQ2/13 | FQ3/13 | FQ4/13 (guidance) |
|---|---|---|---|---|---|---|
| -Converged Packet-Optical | 246.5 | 238.1 | 240.0 | 294.3 | 302.0 | |
| -Packet Networking | 30.2 | 47.3 | 45.8 | 54.2 | 61.6 | |
| -Optical Transport | 89.8 | 71.8 | 57.6 | 57.4 | 66.2 | |
| -Software and Services | 107.6 | 108.3 | 109.7 | 101.8 | 108.6 | |
| Revenue | 474.1 | 465.5 | 453.1 | 507.7 | 538.4 | 550-580 |
| Adj. OPEX | 175.6 | 191.8 | 176.6 | 197.4 | 190.4 | high 190s |
| Adj. GM% | 39.6% | 42.7% | 44.6% | 42.5% | 43.6% | low 40%s |
| Adj. EPS | -0.04 | -0.07 | 0.12 | 0.02 | 0.23 |
Revenues were on the high end of guidance and $5M or so above analyst estimates, powered by sequential growth across all product segments. Combined with lower costs and higher margins, that led to adjusted non-GAAP earnings of $0.23 per share, six cents above forecasts.
Looking ahead, Ciena’s projected revenue range for fiscal Q4 is for a midpoint of $565M, ahead of expections in the neighborhood of $550M. So far the market likes what it sees, and the stock is up over 10% in premarket trading.
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mhammett on euNetworks, Ciena Put 1.6Tbps Wavelengths to Work: “Did they say anywhere what the channel size was to deliver 1.6 TB/s? All of the other operators I’ve talked…” Nov 12, 08:31
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