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Ciena reports surprise adjusted profit, sees strong 2013
March 7, 2013 / 3:40 PM / 5 years ago

Ciena reports surprise adjusted profit, sees strong 2013

* Expects second-quarter revenue $465 mln-$495 mln vs est $482.8 mln

* First-quarter adjusted profit/share $0.12 vs est loss/share $0.13

* First-quarter revenue $453.1 mln vs est $449.1 mln

* Shares up 16 pct

(Adds details from conference call)

March 7 (Reuters) - Network equipment maker Ciena Corp CIEN.O said it expected a strong 2013, helped by major customer wins, after reporting a surprise adjusted profit on increased margins and higher revenue, driving its shares up as much as 16 percent.

Telecom expenditure is expected to rise in 2013, after a year of weak capital spending by telecom carriers faced with a weak global economy and stiff competition.

“We expect to begin deployment of some new international transport wins and other projects that we won in 2012 in the second quarter,” Chief Financial Officer James Moylan said on a conference call with analysts.

Significant budget flushes from operators in Europe, China and Latin America buoyed the market towards the end of 2012, Infonetics Research analyst Michael Howard said last month.

Ciena, whose customers include AT&T Inc (T.N), CenturyLink Inc (CTL.N), Sprint Nextel Corp (S.N), Verizon Communications Inc (VZ.N) and Vodafone Group Plc (VOD.L), expects to win more contracts this year.

Larger rival Cisco Systems Inc (CSCO.O) said last month there were early signs of stabilization in government spending, but the picture was mixed and parts of Europe remained challenging. [ID:nL1N0BDICN]

Ciena, whose rivals include Huawei Technologies Co Ltd [HWT.UL], Juniper Networks Inc (JNPR.N) and ZTE Corp 000063.SZ, forecast second-quarter revenue in the range of $465 million to $495 million.

Analysts on average were expecting revenue of $482.8 million, according to Thomson Reuters I/B/E/S.

Net loss narrowed to $47.3 million, or 47 cents per share, in the first quarter from $47.7 million, or 49 cents per share, a year earlier. [ID:nBw2Ch300a]

    The company reported a profit of 12 cents per share, excluding items, for the quarter ended Jan. 31.

    Revenue rose 9 percent to $453.1 million.

    Analysts had expected a loss of 13 cents per share on revenue of $448.3 million.

    Ciena recorded an adjusted operating margin of 5.6 percent, compared with a negative 0.2 percent a year earlier.

    The company said it started seeing the impact of operating efficiencies, including cost reductions and direct order fulfillment.

    Ciena shares were up 15.5 percent at $17.25 on the Nasdaq on Thursday morning after touching a six-month high of $17.38.

    (Reporting By Aditya Kondalamahanty and Sruthi Ramakrishnan in Bangalore; Editing by Joyjeet Das)

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