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Ciena Beats by a Dime

The fiscal third quarter exceeds expectations.

Ciena (CIEN) - Get Ciena Corporation Report breezed by Wall Street's fiscal third-quarter estimates as the optical-network-gear maker posted a 34% year-over-year revenue gain.

The Linthicum, Md., company made $28 million, or 29 cents a share, for the quarter ended July 31, reversing the year-ago loss of $4 million, or 5 cents a share. Revenue rose to $205 million from $153 million a year earlier.

On a so-called non-GAAP basis, excluding certain costs, Ciena's profit was 41 cents a share in the latest quarter. That's up from 23 cents a year ago and a dime ahead of the Thomson Financial analyst mean estimate.

"Our strategy of prioritizing our investments and targeting high-growth market segments has enabled us to grow faster than the overall market for the past two years, and at this point, we are on track to do so once again with annual revenue growth of up to 37 percent in fiscal 2007," said CEO Gary Smith. "At the same time, as evidenced by this quarter's performance, we remain focused on maximizing the operating leverage in our business model."

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Shares rose $2.08 early Thursday to $40.50.