NEW YORK (TheStreet) -- Ciena (CIEN) shares are soaring following the company's strong second-quarter earnings results. In mid-afternoon trading shares traded at $22.49, up 18%, but remain down about 7% year to date.
Ahead of Thursday's results, Ciena stock was down 22% year to date, punished after management issued worse-than-expected guidance in March for the quarter just reported. But as we discussed Tuesday, this was an overreaction. And following the company's earnings beat and improved guidance, observers owe Ciena an apology for having doubted its abilities.
The company reported revenue of $560 million, up more than 10% from last year's mark of $507 million. Observers were looking for $559.18 million.
Revenue from the company's largest division, converged packet optical equipment, rose roughly 21% year over year to $356.8 million. This segment now accounts for 64% of Ciena's total revenues, inching up 1% sequentially.
The company specializes in broadband, data networking and optical equipment services. Ciena's main customers included (among others) are Verizon (VZ) and AT&T (T). While these are indeed well-respected names, they haven't spent nearly the amount industry experts predicted.
But it looks as if things are beginning to pick up. This quarter, AT&T accounted for 21.5% of Ciena's total revenue, up from 18.8% in the March quarter. And with international revenue now accounting for 42% of total revenue, Ciena has ample options to offset persistent weakness in the U.S.