Telecom Supplier Ciena Beats Earnings Estimates

Telecom-equipment supplier Ciena reported stronger-than-expected quarterly earnings and revenue.
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Ciena  (CIEN) - Get Report, the telecom-networking equipment, software and services giant beat analysts' expectations for fiscal-second-quarter earnings and revenue.

Shares of Ciena at last check were down 0.9% at $55.79, edging off from an 18-year high reached the day before.

For the quarter ended May 2, the Hanover, Md., telecom supplier reported earnings of $91.7 million, or 59 cents a share. That beat the 50-cent estimate of analysts surveyed by Zacks Investmtent Research. And it was ahead of the $52.7 million, or 33 cents a share, of the year-earlier quarter.

Ciena's earnings adjusted for non-recurring items were 76 cents a share.

Ciena also beat analyst estimates on revenue, reporting a 3.4% increase to $894.1 million for the quarter. Analysts polled by Zacks Investment Research had forecast revenue of $888 million.

Total platform networking revenue rose $21.5 million to $718.5 million, with converged packet optical representing the biggest chunk, rising to $654.3 million for the quarter, from $623.9 million a year earlier. 

Meanwhile, Ciena reported a decline in global services revenue, which fell to $115.6 million from $120.3 million during the year-earlier quarter. A bright spot was consulting and network design, which shot up to $9.9 million from $1.1 million the year earlier.

Ciena also reported a rise in revenue from maintenance support and training, which rose to $71.5 million for the quarter from $68.8 million a year ago.

For 2020 through the close of trading Wednesday, Ciena shares were 32% higher. They've risen 84% since touching a 52-week low above $30 on March 16.