Ciena Shares Soar After Sales Forecast Exceeds Estimates
Ciena Corp. (CIEN), a maker of communications-network equipment for phone carriers and other customers, jumped 17 percent after its third-quarter sales forecast topped estimates.
Revenue in the period will be $515 million to $545 million, the Hanover, Maryland-based company said today when it released its second-quarter results. Analysts had predicted $509.4 million, according to data compiled by Bloomberg.
Ciena is benefiting from surging demand for fiber-optic networking gear, which speeds communications by sending data via light. The company also offers software and other tools to help transmit information more efficiently at a time when Internet traffic is booming.
“The carriers’ shift in spending is happening and it’s going to be big over a long period of time,” Chief Executive Officer Gary Smith said in an interview.
To adjust to the shift, Ciena has broadened its product lineup and expanded its efforts in services and software, the CEO said.
“Today, 70 percent of our engineering team is in software development,” said Smith.
The shares rose 17 percent to $19.15 at the close in New York, marking the biggest single-day gain since September 2011. The stock has advanced 22 percent this year.
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