- Zhone (ZHNE) is blasting off after beating Q2 revenue estimates (while missing on EPS), and announcing long-time CEO Mory Ejabat will be stepping down from the position (albeit while remaining chairman) to make way for ex-Segway CEO Jim Norrod.
- Also possibly helping: Zhone stated on its CC (transcript) it expects its gross margin to return to a historical range of 35%-37% in Q3. Q2 GM was 34%.
- Q3 revenue is expected to grow by a low-single digit % Q/Q; the sole analyst estimate calls for revenue to rise 3.7% Q/Q to $33.6M.
- With shares trading at just 0.7x 2014E sales going into earnings, expectations were fairly low.