Ciena Shares Pop After Q3 Earnings Beat, AT&T's Vyatta Acquisition

  • Networking company Ciena Corp CIEN reported third-quarter FY21 revenue growth of 1.2% year-on-year to $988.1 million, beating the analyst consensus of $971.6 million.
  • Segments: Total Networking Platforms revenue declined 2.5% Y/Y to $782.6 million, and Total Global Services increased 13.1% Y/Y to $132 million.
  • The adjusted gross margin remained flattish at 48.5%, while the adjusted operating margin contracted 330 bps to 19.1%.
  • The non-GAAP EPS of $0.92 beat the consensus of $0.79.
  • Ciena held $1.5 billion in cash and equivalents and generated $69.1 million in operating cash flow.
  • Acquisition: Ciena agreed to acquire AT&T Inc's T Vyatta virtual routing and switching technology for undisclosed financial terms.
  • The acquisition reflects Ciena's continued investment in its Routing and Switching roadmap to address the growing market opportunity to transform the edge.
  • Ciena has agreed to support the Vyatta routing platform in AT&T's wireless network across multiple 5G use cases, enterprise business services, and virtual networks with cloud scalability. 
  • Price Action: CIEN shares traded higher by 5.84% at $60.20 in the premarket session on the last check Thursday.
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