Ciena (Nasdaq: CIEN) reported that its Converged Packet Optical and Packet Optical revenues were the stars of its fiscal second quarter for 2013, with both rising to $291.4 million and $57.1 million, respectively.
The gains in these two segments helped drive up its overall revenue to $507.7 million. Ciena narrowed its net loss to $27.1 million, or 27 cents a share.
However compelling the gains were, Ciena reported that Optical Transport and Software and Services declined sequentially to $57.4 million and $101.8 million from $57.6 and $109.7 million. From a geographic perspective, international customers contributed 43 percent of total revenue, while two customers made up more than 10 percent of revenue and represented 31.3 percent of total revenue.
"We have designed Ciena to take advantage of the fundamental shift in network architecture driven by changing end-user demands, and our strong quarterly and first half of 2013 performance are a direct result of that strategy," said Gary B. Smith, president and CEO of Ciena, in the earnings release.
Looking towards fiscal third quarter 2013, Ciena has forecast revenue to be $515 to $545 million. Analysts polled by Thomson Reuters I/B/E/S expect third quarter earnings of $509.5 million.
Kevin Dennean, a Citigroup analyst, wrote in a research report that Ciena will benefit from an uptick in spending from both AT&T (NYSE: T) and Verizon (NYSE: VZ).
"We believe spending at key North American carriers Verizon Communications and AT&T will improve for Ciena in the second half of 2013," he said
Shares of Ciena were trading at $18.34, up $2.03, or 12.45 percent in morning trading on the Nasdaq stock exchange.
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