This morning, Ciena reported 2019Q1 earnings rose to $33.6 million, or 21 cents a share, from a loss of $473.4 million, or $3.29 a share, the year prior, when the company recorded a major income tax-related expense. Analysts were only expecting 14 cents a share for the quarter.
Sales rose 21% to $778.5 million, compared to the analyst forecast of $761 million.
“We began fiscal 2019 with a very strong first quarter performance, including outstanding top and bottom line growth as well as continued market share gains,” said Gary B. Smith, president and CEO, Ciena. “We believe that the combination of our leading innovation and positive industry dynamics will enable us to further extend our leadership position.”
On the conference call, Gary Smith said that Ciena gained 3% market share overall. He was encouraged by broad base growth coming from numerous market areas. But he did say that they were expecting a very good year in North America led by the Tier 1 Service Providers.
The company reported strong sales in its converged packet optical segment, which focuses on hardware sales for networking. Revenue in the unit jumped 71% to $548.9 million.
Investors were disappointed with the results. Shares closed down 5% for the day.
Ciena’s press release can be seen at https://investor.ciena.com/news/press-release-details/2019/Ciena-Reports-Fiscal-First-Quarter-2019-Financial-Results/default.aspx