Ciena Corp. (NYSE: CIEN) reported second-quarter fiscal 2016 results before markets opened Thursday. The network equipment maker reported adjusted diluted earnings per share (EPS) of $0.34 and $640.7 million in revenues. In the same period a year ago, the company reported EPS of $0.35 on revenue of $621.6 million. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.27 and $630.74 million in revenue.
On a GAAP basis, the company reported net profit of $14 million ($0.10 per share).
For the fiscal third quarter ending in April, Ciena is forecasting revenues in a range of $655 million to $685 million and adjusted gross margin in the mid-40% range. Adjusted gross margin in the second quarter totaled 45.1%.
Ciena is also forecasting adjusted operating expenses at approximately $225 million, compared with a second quarter total of $254.9 million.
Consensus estimates for the third quarter call for EPS of $0.37 on revenues of $664.33 million.
U.S. sales comprised 57.3% of total sales and one customer, AT&T Inc. (NYSE: T), accounted for 18% of total revenue. In the first quarter, AT&T accounted for 22% of Ciena’s revenues.
The company’s CEO said:
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.
The earnings and revenue beats pushed the shares higher in Thursday’s premarket, but the bar had been set pretty low and Ciena’s outlook is more or less in line with current expectations.
Shares traded up about 15% at $20.44 shortly after the opening bell, in a 52-week range of $15.62 to $26.50. Thomson Reuters had a consensus analyst price target of $23.51 before the results were announced.
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