By Optical networking firm Ciena’s shares were on the rise on Thursday following the release of their strong financial results for the fiscal third quarter. The company experienced a significant boost in revenue, driven by the increasing demand for their hardware from cloud computing providers.
Impressive Financial Performance
Ciena reported revenue of $1.07 billion for the quarter, a 23% increase compared to the same period last year. This figure exceeded the company’s projected range of $1 billion to $1.08 billion and topped the consensus forecast of $1.04 billion. Adjusted profits stood at 59 cents per share, surpassing the consensus estimate of 51 cents.
Positive Margin Trend
The company also demonstrated a positive shift in its adjusted gross margin, which rose to 42.7% from 40% in the previous year’s quarter. This improvement signifies Ciena’s commitment to maintaining strong financial performance.
Expansion Beyond Telecommunications
Ciena’s success is not solely attributed to telecommunications companies, as the company has been increasing its business with cloud providers. In fact, non-telco customers accounted for a record-breaking 46% of the company’s revenue in this quarter.
CEO Optimistic About Future Growth
Ciena CEO Gary Smith expressed enthusiasm regarding the company’s results, stating that they delivered excellent performance across all regions. Smith also mentioned their increasing customer activity and elevated backlog, which he believes, combined with their market leadership and expanding addressable market, will drive further growth and market share gains in the future.
In premarket trading on Thursday, Ciena’s shares rose by 5.3% to reach $45.45.
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