Ciena Q1 Adj. Profit Beats View, Sees Q2 Revenues In Line

(RTTNews) - Network specialist Ciena Corp. (CIEN) on Thursday reported a loss for the first quarter that narrowed from last year, reflecting double-digit revenue growth. Adjusted earnings per share beat analysts' expectations, while revenues came in slightly below their estimates. Looking ahead, the company provided revenue guidance for the second quarter in line with Street estimates.

The Maryland-based telecom networking equipment maker reported net loss for the first quarter of $15.94 million or $0.15 per share, wider than loss of $47.32 million or $0.47 per share las year. The prior-year quarter' results include loss on extinguishment of debt of $28.63 million.

Excluding items, adjusted net income for the quarter was $13.68 million or $0.13 per share, compared to $12.28 million or $0.12 per share in the year-ago quarter. On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 18 percent to $533.70 million from $453.09 million in the same quarter last year. Analysts' revenue consensus was $533.75 million.

Segment-wise, converged packet optical revenue for the quarter surged 39 percent to $333.4 million and accounted for 62.5 percent of total revenues. Software and services revenues declined 1 percent to $108.5 million.

The company noted that non-U.S. customers contributed 41 percent of total revenue. One customer accounted for greater than 10 percent of revenue and represented 18.8 percent of quarterly revenues.

However, gross margin for the quarter contracted 90 basis points from the year-ago period to 42.3 percent, while operating margin rose 180 basis points to 0.6 percent.

Looking ahead, Ciena forecasts second-quarter revenues in a range of $540 million to $570 million. Analysts expect the company to report revenues of $561.07 million for the quarter.

Ciena said it anticipates adjusted gross margin for the second quarter to be in the low 40s percent range.

CIEN closed Wednesday's regular trading session at $25.36. In Thursday's pre-market, the stock is up $0.14 or 0.55 percent to $25.50.