Ciena Q2 Profit Beats Estimates By $0.07; Stock Surges

(RTTNews) - Ciena Corp. (CIEN), the network specialist, reported adjusted net income of $52.4 million, or $0.34 per share for the fiscal second quarter 2016, compared to an adjusted net income of $47.3 million, or $0.35 per share, for the fiscal second quarter 2015. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per share of $0.27 for the quarter. Analysts' estimates typically exclude special items. Shares of the company were up more than 12 percent, in premarket trading, following the earnings announcement.

"This quarter's strong financial performance is a result of the investments we've made to diversify our business, in particular the expansion of our packet business and our momentum in key geographies," said Gary Smith, president and CEO, Ciena.

GAAP net income for the fiscal second quarter 2016 was $14.0 million, or $0.10 per share, compared to $20.7 million, or $0.17 per share, for the fiscal second quarter 2015. Operating expense increased 10.8% to $254.9 million.

For the fiscal second quarter 2016, Ciena reported revenue of $640.7 million as compared to $621.6 million for the fiscal second quarter 2015. Analysts expected revenue of $630.74 million for the quarter.

Ciena expects third-quarter revenue in the range of $655 to $685 million. Analysts expect revenue of $664.33 million, for the quarter. For the third-quarter, the company projects adjusted gross margin in the mid-40s percentage range and adjusted operating expense of approximately $225 million.