Trading to nearly three and a half year highs, shares of network firm Ciena (CIEN 26.99, +3.51 +14.95%) are aggressively advancing as the company reported a Q2 earnings and revenue beat this morning, much to the delight of investors.
Simply put, CIEN performed well in Q2; upbeat earnings and revenues are being rewarded as the stock takes off on Friday. Specifically, earnings per share (EPS) of $0.45 and revenues of $707.02 million were both above market expectations. Adjusted gross margins were up 80 basis points sequentially (and 60 basis points on a year-over-year basis) to 45.7% in Q2.
Breaking the revenue beat down, CIEN reported strong year-over-year growth in all of its segments. Networking Platforms saw revenues increase about 15% to $502.1 million. Software and Software-related Services posted revenue growth of 11% to $13.1 million, while Global Service revenues were up just shy of 2% to $58.2 million in the quarter.
Also of note, CIEN’s US customers contributed 55.4% of total revenues. The company also noted that one customer in particular accounted for greater than 10% of revenues and represented 15% of total revenues. CIEN’s inventories were $287.1 million as the quarter ended on accounts receivable of $564.9 million.
Investors also seem to be giving the Q3 guidance, albeit in-line, some praise. The company sees revenues for the coming period in the range of $710-740 million on adjusted gross margins in the mid-40s percentage range.