Boston, MA 06/06/2014 (wallstreetpr) – Communications networking equipment, software and services provider Ciena Corporation (NYSE:CIEN) provided an upbeat guidance for the third quarter that was more than what the Street analysts’ estimated. The company’s adjusted earnings for the second quarter also beat predictions thereby lifting investors’ sentiments on the stock.
Outlook
Ciena Corporation (NYSE:CIEN) has provided revenue guidance between $585 and $615 million for the third quarter. This meant that even the lower end of the outlook is above the Wall Street analysts’ expectations of $583.31 million.
Its forecast of adjusted gross margin between the low and mid 40s percentage is either in line with their latest quarter performance or above. Similarly, adjusted operating costs are predicted to be approximately $210 million, which is in tune with its second quarter results.
2Q Results
Ciena Corporation (NYSE:CIEN) suffered a net loss of $10.2 million or a loss of 10 cents a share, which is narrower than a loss of $27.1 million or a loss of 27 cents a share in the year earlier quarter. However, on an adjusted basis, net income surged to $19.4 million or 17 cents a share from $2.2 million or 2 cents a share in the previous year quarter. On average, analysts from the Street estimated the company to earn 13 cents a share for the latest quarter.
Total revenue advanced 10.3% to $560.0 million from $507.7 million in the year-ago quarter. This is higher than the Street expectations of $559.18 million.
Ciena Corporation (NYSE:CIEN)’s revenue is driven by converged packet optical segment that represented 63.7% of revenue, up from 57.9% in the year earlier period and 62.5% in the preceding first quarter. Similarly, contributions from packet networking grew to 11.9% of total revenue from 10.7% in the comparable period and 9.7% in the first quarter.
Other Metrics
Ciena’s adjusted gross margin improved to 43.1% from 42.5%, while adjusted operating margin increased to 6.2% from 3.7% in the previous year quarter and 5.9% in the first quarter of the current fiscal year.
