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Ciena Jumps on Better-Than-Expected Earnings

Ciena shares traded higher after fiscal second quarter earnings and revenues exceeded analysts expectations.

Shares of Ciena  (CIEN) - Get Ciena Corporation Report rose 5% in pre-market trading Thursday after the networking systems company reported fiscal second-quarter profit and revenue that beat expectations, amid signs of improved customer spending.

Shares of the Hanover, Md., company were rising 8.09% to $58.81 at last check. The stock has gained 3.0% year to date through Wednesday.

For the quarter ended May 1, net income rose to $103.1 million, or 66 cents a share, from $91.7 million, or 59 cents a share, in the year-ago period. Adjusted earnings per share fell to 62 cents from 76 cents from a year ago, but beat the FactSet consensus of 48 cents.

Revenue declined 6.7% year-over-year to $833.9 million, above the FactSet consensus of $829.2 million.

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Product revenue declined 9.4% to $670 million, while services revenue grew 6.3% to $163.9 million, the company said.

“We delivered strong fiscal second-quarter results as we continued to see encouraging signs in the market environment, including improvements in customer spending,” said President and Chief Executive Gary Smith in a statement. 

“These dynamics, combined with our business and financial performance in the first half of the year, give us strong visibility and confidence in our ability to achieve our financial targets as we move through the year," Smith added.

Ciena develops and markets communications network platforms and software, and offers professional services. The company's broadband access, data and optical networking platforms, software tools and global network services support worldwide telecom and cable/MSO services providers, and enterprise and government networks.

The company bought back stock worth $26.2 million during the quarter.