Ciena Earnings Highlight Data Center Connectivity
In its third-quarter earnings call this morning, networking systems and software provider Ciena (NYSE: CIEN) said hyperscaler networking demand remains strong, while North American telcos are returning to normal spending patterns following inventory corrections.
"We delivered strong results for the fiscal third quarter that reflect growing momentum with cloud providers and continued gradual recovery with service providers," said Gary Smith, Ciena president and CEO, in the press release. The company, he noted, saw “outsized growth” in fiscal 2023, with overordering by telcos following Covid supply chain problems.
This lopsided ordering accounted in part for the company showing reduced revenue figures for Q3. Specifically, overall sales were $942.3 million, down 11.8% year-over-year (y/y) from Q3 2023. Adjusted net income was $0.8 million, or 35 cents per share, down from $89.1 million, or 59 cents per share y/y.
Despite this, Ciena’s report beat analyst estimates, which called for $928.3 million in sales and 26 cents EPS. And Ciena seems bullish on its market opportunities.
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