(CIEN) which sells optical switches and other products that support Internet protocol (IP) networks, said it was optimistic about its outlook. The company forecast full-year revenue growth of up to 27 percent, better than the average analyst forecast of 22 percent growth according to Reuters Estimates.
"While we are mindful of the macro economic environment, indications from our customers to date suggest no change in the fundamental drivers of Ciena's business: the demand for increasing network capacity and the transition to Ethernet/IP-based network infrastructures," Ciena Chief Executive Gary Smith said in a statement. "Accordingly, we remain optimistic about our outlook for the year."
Ciena said its fiscal first-quarter revenue rose 38 percent to $227.4 million. Analysts, on average, had forecast revenue of $225.7 million for the quarter, which ended Jan. 31, according to Reuters Estimates.
Quarterly net profit rose to $28.8 million, or 28 cents a share, from $11.1 million, or 12 cents a share, in the same quarter a year earlier. Adjusted earnings rose to 47 cents from 22 cents, far exceeding the average analyst forecast of 39 cents, according to Reuters Estimates.
One of the highlights of the quarter was a multiyear contract to provide ethernet products to top U.S. phone company AT&T.
Ciena beats by $0.07, reports revs in-line Reports Q1 (Jan) earnings of $0.47 per share, excluding non-recurring items, $0.07 better than the First Call consensus of $0.40; revenues rose 37.7% year/year to $227.4 mln vs the $225.6 mln consensus. "While we are mindful of the macro economic environment, indications from our customers to date suggest no change in the fundamental drivers of Ciena's business: the demand for increasing network capacity and the transition to Ethernet/IP-based network infrastructures. Accordingly, we remain optimistic about our outlook for the year. Inclusive of revenue expected from our recently closed acquisition of World Wide Packets, we anticipate current demand trends will enable us to deliver annual revenue growth in a range, up to 27 percent in fiscal 2008."
It also forecast second-quarter revenue would increase 5 percent from the first quarter, more than the 3 percent expected by analysts. That outlook, as well as the full-year forecast, included revenue from World Wide Packets, a carrier ethernet company Ciena finished acquiring on Monday.
"We're not immune to the global economy, but the fundamentals are clearly positive," Ciena Chief Executive Gary Smith said, citing strong demand for network upgrades by phone service providers and large businesses amid growing Internet traffic.
