Networking Platforms, Ciena’s main growth driver, recorded an 18% growth in revenues to $697 million. Software and Global Services revenues gained 23% and 21% respectively.
Adjusted earnings more than doubled year-over-year to $0.48 per share during the quarter and surpassed the market’s projection by a wide margin. Reported profit advanced to $52.7 million or $0.33 per share from $13.9 million or $0.09 per share last year.
Networking platforms accounted for about 80% of revenues, while two top customers represented a fourth of the total sales
Gary Smith, CEO of Ciena, said, “Today we
reported very strong quarterly performance, including continued market share
gains, driven by our technology leadership and diversified customer base in
high growth markets. We are entering the second half with strong visibility and
increased confidence for the full fiscal year supported by favorable industry
dynamics and growing competitive advantage.”
Ciena repurchased about 1.2 million shares for an aggregate price of $45.4 million during the second quarter.
Related: Ciena Corporation Q1 2019 Earnings Conference Call Transcript
The management’s diversification program continues to yield results, with the broadening customer base and global expansion adding to revenue growth. The initiative is part of the efforts to reduce reliance on the legacy telecom companies and focus on emerging segments like network operation and data center business.
Network technology giant Cisco (CSCO) last
month reported higher earnings and revenues for the third quarter, supported by
a strong performance by its infrastructure platform, and issued positive
guidance for the full year.
Shares of Ciena gained around 14% early Thursday following the earnings report. The stock, which hit a multi-year high earlier this year, gained 43% in the past twelve months.