Ciena Jumps on Q1 Results; Stock Trading Up 17%

Shares of communications networker Ciena CIEN gapped higher at the open on Thursday after the company released upbeat first-quarter earnings results prior to the opening bell. At last check, the stock was trading up a little less than 17 percent to $17.41, a better than 6 month high. Gary Smith, president and CEO of Ciena said, "Our strong first quarter performance reflects a solid start to our fiscal year. We have positioned Ciena to take advantage of the underlying market dynamics, which are increasingly aligned with our strategy and competitive strengths." The company reported a net loss of $47.32 million or $0.47 per share, compared to a loss of $47.65 million or $0.49 per share, in last year's corresponding period. On an adjusted basis, Ciena recorded net income of $12.28 million or $0.12 per share, versus an adjusted loss of $16.48 million or $0.17 per share, in last year's first-quarter. This was slightly better than analysts' consensus which called for a loss of $0.14 per share. Revenue in the period was up 9 percent to $453.09 million from $416.69 million last year. This came in ahead of Wall Street revenue expectations of $449.14 million. Gross margin in the quarter was up 290 basis points to 43.2 percent and adjusted gross margin rose 270 basis points to 44.6 percent. Looking ahead to the second-quarter, the company guided for revenue of $465 million to $495 million. Currently, Wall Street analysts have consensus revenue estimates of $482.13 million for the fiscal second-quarter.