Ciena's FY Q2 revenue rises to $560M on strong packet optical, packet networking results

Ciena reported that fiscal second-quarter revenue rose 10 percent to $560 million, up from $508 million in the fiscal second quarter of 2013, due to an uptick in packet optical and packet networking revenues.

The company's fiscal second-quarter net loss was $10.2 million, or 10 cents per common share, which compares to a GAAP net loss of $27.1 million, or 27 cents per common share, for the fiscal second quarter of 2013.

Once again, converged packet optical was the dominant segment, rising year-over-year to $357 million, up from $294 million in the same period a year ago and sequentially from $333 million in fiscal first quarter of 2014.

A close second was packet networking, where revenues were $66.5, up year-over-year from $54.2 million and sequentially from $51.7 million. Despite these gains, legacy optical transport declined year-over-year to $29.6 million, down from $57.4 million in the same period a year ago.

Amidst the declines in legacy transport, a recent Dell'Oro report revealed that next-gen WDM is a healthy market, rising 12 percent year-over-year in the first quarter of 2014 as service providers continued to add more network capacity to keep pace with their business, wholesale and consumer bandwidth needs.

Looking towards its fiscal third quarter, the vendor has forecast revenues between $585 million to $615 million and adjusted (non-GAAP) gross margin in the low to mid-40s percent range.

Ciena's shares were trading at $21.87, up $2.88 or 15.1 percent, in Thursday morning trading on the Nasdaq stock exchange.

For more:
- see the earnings release

Earnings summary: Wireline telecom earnings in the first quarter of 2014

Related articles:
WDM market tops 12% in Q1, says Dell'Oro
Hibernia upgrades Trans-Atlantic submarine cable network with Ciena's 6500 platform
Integra employs Ciena packet optical platform to enhance cloud service business
Alca-Lu, Ciena, Infinera score with OTN, says Infonetics
Ciena's Q1 revenue rises 18% to $534M, sees uptick in converged packet optical sales