Ciena Shares Pop After Q3 Earnings Beat, AT&T's Vyatta Acquisition

Networking company Ciena Corp CIEN reported third-quarter FY21 revenue growth of 1.2% year-on-year to $988.1 million, beating the analyst consensus of $971.6 million.
Segments: Total Networking Platforms revenue declined 2.5% Y/Y to $782.6 million, and Total Global Services increased 13.1% Y/Y to $132 million.
The adjusted gross margin remained flattish at 48.5%, while the adjusted operating margin contracted 330 bps to 19.1%.
The non-GAAP EPS of $0.92 beat the consensus of $0.79.
Ciena held $1.5 billion in cash and equivalents and generated $69.1 million in operating cash flow.
Acquisition: Ciena agreed to acquire AT&T Inc's T Vyatta virtual routing and switching technology for undisclosed financial terms.
The acquisition reflects Ciena's continued investment in its Routing and Switching roadmap to address the growing market opportunity to transform the edge.
Ciena has agreed to support the Vyatta routing platform in AT&T's wireless network across multiple 5G use cases, enterprise business services, and virtual networks with cloud scalability.
Price Action: CIEN shares traded higher by 5.84% at $60.20 in the premarket session on the last check Thursday.