Ciena beats estimates, turns profit on spiking North American revenue
An 11-percent sales jump propelled networking company Ciena Corp. to better-than-expected second-quarter earnings as the company rode a boost in its North American business.
Hanover-based Ciena (NYSE: CIEN) posted net income of $20.7 million, or 17 cents per share, in earnings released Thursday morning. That was a sharp turnaround from a net loss of $10.2 million, or 10 cents per share, a year ago.
Spiking revenue — much of it in North America — fueled the networking company’s quarter. Revenue increased to $621.6 million in the second quarter, up year-over-year from $560.1 million. North American revenue was a big driver, increasing to $397.2 million from $377.8 million a year ago. U.S. customers accounted for almost 60 percent of Ciena’s total revenue, although the company also saw a large increase in Asia Pacific sales.
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The sharply higher revenue beat analysts’ estimates by more than $15 million. Analysts polled by Thomson Financial Network had predicted revenue at $606.5 million.
The latest results mark just the second time Ciena has posted a quarterly profit since the Great Recession. The company notched its first quarterly profit since 2008 last year before dipping back to losses, including an $18.8 million, 17-cents-per-share loss in 2015’s first quarter.