CIENA Corp. Earnings Cheat Sheet: Loss Narrows With Double-Digit Revenue Growth

CIENA Corporation’s (NASDAQ:CIEN) third quarter loss narrowed, beating estimates. Ciena Corporation is a provider of communications networking equipment, software and services that support the transport, switching, aggregation and management of voice, video and data traffic.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

CIENA Earnings Cheat Sheet for the Third Quarter

Results: Loss narrowed to $31.5 million (loss of 33 cents per diluted share) from $109.9 million (loss of $1.18 per share) in the same quarter a year earlier.

Revenue: Rose 11.7% to $435.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CIEN reported adjusted net income of 8 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 21 cents per share. Analysts were expecting revenue of $443.3 million.

Quoting Management: “Our third quarter results, which included a favorable product mix and reduced operating expense to achieve an as-adjusted operating profit, demonstrate our early progress in delivering additional operating leverage from the business,” said Gary Smith, president and CEO of Ciena. “Despite current macroeconomic headwinds that could cause the rate of market growth to be moderated, we believe that we are well-positioned to capitalize on the continued modernization of today’s networks and to grow faster than the market.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 99.3%, with the biggest boost coming in the first quarter when revenue rose more than twofold from the year earlier quarter.

The company topped expectations last quarter after falling short of forecasts in the second quarter with a loss of 33 cents versus a mean estimate of a loss of 22 cents per share.

Competitors to Watch: Tellabs, Inc. (NASDAQ:TLAB), Alcatel-Lucent (NYSE:ALU), Cisco Systems, Inc. (NASDAQ:CSCO), ADTRAN, Inc. (NASDAQ:ADTN), Sycamore Networks, Inc. (NASDAQ:SCMR), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Orckit Communications Ltd (NASDAQ:ORCT), Juniper Networks, Inc. (NYSE:JNPR), Infinera Corp. (NASDAQ:INFN), and JDS Uniphase Corporation (NASDAQ:JDSU).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)