Earnings of Ciena rise 14% year-over-year on strong P-OTS, software, services sales

Ciena (Nasdaq: CIEN) reported that its fiscal Q2 2012 earnings were up 14 percent year-over-year as it saw strong gains, particularly in Packet-Optical Transport Systems (P-OTS) and software and services.

For the quarter, the vendor reported revenue of $477.6 million.

It also reduced its losses to $27.8 million, or $0.28 per common share, down from the $62.7 million, or $(0.66) per common share loss, it reported in fiscal Q2 2011.

Financial analysts polled by Thomson Reuters I/B/E/S forecasted a loss of 3 cents per share, excluding items, on revenue of $447 million.

During the quarter, Ciena saw strong sales for its P-OTS and software and services segments.

P-OTS revenue grew 66 percent year-over-year to $318 million, while software and services were up 20.5 percent, to $98 million. Much of the P-OTS revenue is attributable to a number of major service providers--including Verizon (NYSE: VZ) and Cable & Wireless Worldwide (LSE: CW.L)--purchasing its gear for 100G projects during the quarter.

Meanwhile, it continued to see gains in its Packet-Optical Switching and Carrier-Ethernet Solutions segments, which rose 6.5 and 6.4 percent respectively, to $31.0 and 30.6 million, in the quarter.

Looking forward, Ciena has forecast fiscal Q3 2012 revenues to be in the range of $455 million to $485 million, which matches financial analysts' revenue prediction of $471.1 million.

The Linthicum, Md.-based company's shares were trading at 12.85, up 0.97 cents, or 8.16 percent, in late-morning trading Thursday on the Nasdaq.

May 31, 2012

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