Ciena Corp. (CIEN – Free Report) reported fiscal third-quarter 2017 non-GAAP earnings of 51 cents, which increased 21.4% on a year-over-year basis and beat the Zacks Consensus Estimate of 49 cents.
Revenues of $728.7 million increased 8.7% year over year and beat the consensus mark of $726.9 million.
Although shares of Ciena have lost 11.5% of its value year to date, it fared better than the industry to which it belongs that declined 13.8%.
Segmental Details
Product revenues (83.8% of revenues) were up 10.3% year over year to $610.7 million. Services revenues (16.2% of revenues) increased 0.8% year over year to $118 million.
Segment-wise, networking platforms (81.3% of total revenue) grew 9.5% year over year to $592.3 million, benefiting from the addition of 14 new customers to its WaveServer platform.
Revenues from Software and software-related services (5.8% of total revenue) soared 33.9% year over year to $42.3 million, mainly driven by accelerated software deployments.
Global services revenues (12.9% of total revenue) declined 4.1% from the year-ago quarter to $94.1 million.
Region-wise, Ciena’s revenues grew 6.2% in North America, 10.9% in Caribbean and Latin America (CALA) and 41.6% in Asia Pacific (APAC) but fell 7.9% in Europe, Middle East and Africa (EMEA).
U.S. customers accounted for 60.1% of its revenues, of which 28% was contributed by two major customers namely AT&T (TT – Free Report) and Verizon (VZ – Free Report) .
Ciena Corporation Price, Consensus and EPS Surprise
Ciena Corporation Price, Consensus and EPS Surprise | Ciena Corporation Quote
Margins
The company’s non-GAAP gross margin contracted 130 basis points (bps) year over year to 45.5%.
Ciena incurred non-GAAP operating expenses of $229.3 million, up 2.6% from the year-ago quarter. However, as a percentage of revenues, it decreased 180 bps from the year-ago quarter to 31.5%.
