'World's Biggest Player In Optical Connectivity' Shines In Q3 Earnings With 23% Revenue Growth

Ciena Corp CIEN reported a third-quarter FY23 revenue growth of 23% year-on-year to $1.07 billion, beating the consensus estimate of $1.04 billion.

The American telecommunications networking equipment and software services supplier, once described as the "world's biggest player in optical connectivity" by the Baltimore Sun, reported non-GAAP EPS of $0.59 above the consensus of $0.51.

Segments: Total Networking Platforms revenue grew by 27.4% Y/Y to $846.6 million, and Total Global Services increased by 5.5% Y/Y to $129.3 million.

Margins: The adjusted gross margin expanded by 270 bps to 42.7%.

Adjusted operating margin grew by 350 bps to 12.0%.

One customer represented 10%-plus of revenue for 11.7% of revenue.

Ciena held $1.28 billion in cash and equivalents and generated $8.7 million in operating cash flow.

"We delivered excellent results for the fiscal third quarter with strength across all regions," said Gary Smith, president and CEO of Ciena. "We are encouraged by increased customer activity that, when combined with our elevated backlog, market leadership and expanding addressable market, we believe will drive growth and market share gains going forward."

The stock has lost 15% YTD, with at least two analysts cutting its price target in August.

Price Action: CIEN shares were trading higher 3.34% at $44.60 premarket on the last check Wednesday. 

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