VZ) and AT&T ( T) decided to spend. Not to mention that Ciena was coming off consecutive quarters in which the company beat estimates and raised guidance. Since the June article, the stock has soared 22%, including a 52-week high of $24.61. And following yet another beat-and-raise quarter, there's no question that more gains are on the way. On many levels, the Ciena's turnaround is pretty remarkable. With the recent moves made by Alcatel-Lucent ( ALU), questions were raised as to whether Ciena, which also competes with bigger rivals like Cisco ( CSCO) and Juniper ( JNPR), could ever survive the weak carrier-spending environment. softer-than-expected guidance . So truth be told, although I was in the glass-half-full camp in the telecom sector, there were also reasons for caution heading into Ciena's report. Essentially, this performance, which also includes a 8% year-over-year improvement in non-GAAP gross margin, validates what I've been saying about the credibility that Ciena has earned. The fear of Cisco is always a concern, which is what has kept investors at bay.