Ciena (Nasdaq: CIEN) exceeded analyst expectations in the second quarter and told to raise their forecasts for the second half of the year.
After market close Thursday, the provider of optical network systems posted fiscal second quarter net income of $18.4 million, or 12 cents per share. First Call's survey of 19 analysts predicted a profit of 10 cents per share.
Second quarter revenue increased to $185.7 million, up 66 percent year-over-year and up 20 percent sequentially. The company recorded sales to 22 customers in the second quarter, compared to 13 a year earlier. Two customers generated 63 percent of second quarter revenue.
Revenue also came from another customer yet to be revealed, Ciena said.
The company sees earnings per share growing slightly faster than current consensus estimates for the third and fourth quarters, said Patrick Nettles, president and CEO. First Call consensus currently predicts per-share earnings of 16 cents and 22 cents for the third and fourth quarters, respectively.
Nettles predicted strong sequential revenue growth in the second half.
"Our visibility into orders for the third quarter and the balance of the fiscal year is very good," Nettles said.
Not everything met expectations in the second quarter. Ciena's MultiWave EdgeDirector product hasn't sold as well as expected, Nettles told analysts during a Thursday afternoon conference call. As a result, the company doesn't expect any significant revenue from the product in the near-term.
Also Thursday, Ciena said its MultiWave CoreDirector switching product is now in trials with seven companies.
Competitors of Ciena include Lucent (NYSE: LU), Nortel Networks (NYSE: NT) and Sycamore Networks (Nasdaq: SCMR), which also reported earnings Thursday.>