Ciena delivers a strong fiscal Q2

Rob Powell
06 Jun 2016
00:00
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Daily News

Ciena received a bump to its share price last week after delivering what looks like a well-received fiscal Q2 earnings report.

Revenues of $640.7 million and adjusted earnings per share of $0.34 were both in excess of analyst projections, which were looking for something in the $630 million and $0.27 range.

In terms of products, Ciena saw surges in Packet Networking and Software services both sequentially and over the same period last year. Geographically, it was Latin America and APAC driving growth while North America was flat and Europe was down.

But perhaps more important was the company's guidance for Q3, in which they project revenues of $655-688 million - easily straddling analysts hopes of $665 million or so with a little cushion as well.

Ciena was due for a happy quarter after two consecutive quarters in which the market expected more than it got.

After the purchase of Cyan last year with its Blue Planet SDN/NFV capabilities, there has been a tendency to expect too much too soon from the newer product lines they are trying to establish.

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