Seeking Alpha

Ciena Corporation (CIEN)

  • May. 16, 2013, 9:15 AM
    A few Cisco rivals and suppliers are up premarket after the networking giant beat estimates while reporting strong data center switch/server sales and service provider orders (albeit while cautioning the SP capex environment remains tough). Some others might move higher following the open. JNPR +3.6%. FFIV +3.2%. CIEN +3.9%. EZCH +1.2% - Cisco mentioned on its earnings call sales of its ASR 9000 edge routers, which EZchip supplies network processors for, were up 40%+ Y/Y.
  • May. 15, 2013, 5:00 PM
    Cisco (CSCO) guides on FQ3 call (webcast) for FQ4 EPS of $0.50-$0.52 and revenue growth of 4%-7%, which compares with a consensus of $0.51 and 6.9%. Revenue growth will take a 1% hit from the Linksys sale. Gross margin is expected to drop to 61%-62% from FQ3's 63%. Shares +7.9% AH. JNPR +1.6%. BRCD +1.1% CIEN +1.5%.
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  • May. 15, 2013, 11:32 AM
    Evercore launches coverage on Ciena (CIEN +2.1%) with an Overweight and $20 PT, giving a lift to the telecom equipment maker. The move comes a day after Ciena announced new Ethernet modules for its 6500 Packet-Optical Platform, which combines Ethernet and optical networking capabilities in the same box. The upgrade adds support for Ciena's SAOS operating system, long a staple of Ciena's Ethernet-only gear. Integrated Ethernet/optical products made up 53% of Ciena's FQ1 revenue.
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  • Apr. 25, 2013, 10:17 AM
    A Q1 beat and strong 2013 guidance lead Infinera (INFN +22.8%) to surge to 52-week highs. Industry peers are up in sympathy, a day after many declined thanks to AT&T: CIEN +3%. FNSR +2.8%. JDSU +1.5%. ADTN +2.2%. CALX +1.5%. On its earnings call, Infinera guided for Q2 revenue of $130M-$140M and EPS of -$0.04 to $0.01, above a consensus of $124.3M and -$0.05. Gross margin (an issue going in) is expected to rise to 37%-39% from Q1's 36%. 2013 revenue growth is now pegged at the the high end of a guidance range of 10%-20% (consensus is 17%). Purchase commitments for the advanced DTN-X optical transmission system grew by 6 to 27. Needham has upgraded shares to Buy.
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  • Apr. 23, 2013, 7:56 PM
    Telecom equipment and optical component makers fall in AH trading in response to Juniper's revenue miss and light Q2 guidance, and (in what's arguably the bigger news) AT&T's $2B/year capex budget cuts for 2014 and 2015. CSCO -1.8% AH. CIEN -2.5%. RVBD -1.4%. JDSU -3.4%. FNSR -1.3%. TLAB -1.6%. Many of these companies had surged last November when AT&T set lofty 2014/2015 capex targets. Other names that could fall tomorrow: INFN. FN. OPLK. CALX. ADTN.
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  • Apr. 10, 2013, 11:04 AM
    Adtran's (ADTN +13%) Q1 beat is contributing to strong gains in telecom equipment, chip, and component stocks, as investors take it as another sign of improving telecom capex going into earnings season. Adtran's remarks about strong demand from both U..S. and international carriers can't be hurting. CSCO +2.5%. CIEN +6.4%. JDSU +4.6%. ALU +4.6%. FN +4.8%. FNSR +6%. PKT +4.2%. RKUS +4.2%. JNPR +3.9%. CAVM +3%. INFN +2.9%. OCLR +4%. SONS +2.5%. 2013 has seen a string of rallies (I, II, III) tied to capex hopes.
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  • Mar. 21, 2013, 2:14 PM
    Telecom equipment/optical component names underperform following FBR's Cisco/Juniper downgrades, as investors mull the impact of lower demand for switches/routers among service providers and enterprises on demand for complementary hardware and the parts that go into it. Given software-defined networking (the main reason for FBR's downgrade) will have a limited impact on hardware use on many carrier networks, is the Street overreacting? JDSU -4.2%. FNSR -3.3%. CIEN -3.8%. ADTN -3.1%. ALU -2.7%. ADTN -3.1%. SONS -4.7%. INFN -2.6%. FFIV -2.3%.
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  • Mar. 14, 2013, 10:05 AM
    Telecom equipment and component makers trade higher after China Mobile (the world's largest carrier) forecasts a 49% Y/Y increase in capex in 2013 to a hefty RMB190.2B ($30.6B). Vodafone and France Telecom's plans to build a fiber network in recession-hit Spain might not be hurting either. FNSR +6.6%. ALU +2.9%. JNPR +2%. OCLR +4.8%. CIEN +1.5%. JDSU +1.5%. ALLT +3.3%. ERIC +1.2%.
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  • Mar. 7, 2013, 1:10 PM
    Midday top 10 gainers: IMMR +39%. AFFY +36%. HOTT +29%. CTC +26%. NAV +26%. GMXR +20%. REE +18%. HIMX +18%. CIEN +17%. MITK +17%.
    Midday top 10 losers: SCTY -14%. AV -12%. BAA -12%. HTHT -12%. YY -11%. BORN -10%. MCOX -9%. MTG -9%. BLDP -9%. JRCC -9%.
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  • Mar. 7, 2013, 9:18 AM
    Ciena (CIEN) +13.9% following its FQ1 beat, which is adding fresh fuel to hopes of improving telecom capex. FQ2 guidance is for revenue of $465M-$495M, in-line with a $482.1M consensus. Gross margin was 44.6%, +190 bps Q/Q and +270 bps Y/Y. Expected to be in low-40s in FQ2. Sales of integrated Ethernet/optical networking gear (53% of revenue) +18% Y/Y. Ethernet switches +113%, optical transport -47%. Opex roughly flat. 2 customers made up 26% of sales. Shares remain well below early 2011 levels, and even further below 2007 levels. (PR)
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  • Mar. 7, 2013, 9:10 AM
    Premarket gainers: HIMX +36%. NQ +17%. CIEN +15%. MTSL +12%. FNSR +9%. HZNP +8%. EDAP +8%. WFR +7%. DANG +6%. INFN +6%. JDSU +6%. INVE +6%. MLNX +5%.
    Losers: JRCC -14%. AV -11%. SCTY -8%. PETM -8%. DRYS -7%. NBG -5%
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  • Mar. 7, 2013, 8:46 AM
    Ciena (CIEN) +15% premarket after swinging to a surprise non-GAAP profit. CEO Gary Smith notes market dynamics are "increasingly aligned with our strategy and competitive strengths." Gross margin increased to 43.2% from 40.3%, notwithstanding input cost increases. Telecom-equipment stocks have struggled with a shrinking customer base and weak spending; CIEN's investments in next-generation technology may be paying off.
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  • Feb. 4, 2013, 11:10 AM
    A slew of telecom hardware and software firms are higher following Oracle's deal to acquire Acme Packet (I, II). The big winners include VoIP/unified communications software providers BroadSoft (BSFT +7.7%) and AudioCodes (AUDC +4.2%), and volatile deep packet inspection hardware plays Allot (ALLT +4.6%) and Procera (PKT +5.9%). Juniper (JNPR +1.4%), F5 (FFIV +1.2%), and Ciena (CIEN +1.6%) are also higher - Juniper is the frequent subject of M&A speculation, but its $11.7B market cap poses a challenge. (Sonus and Riverbed)
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  • Jan. 31, 2013, 10:51 AM
    Just about anyone competing with JDS Uniphase (JDSU +17.7%) in a major way is higher after the optical component/test equipment firm beat FQ2 estimates and issued healthy FQ3 guidance. FNSR +10.8%. OCLR +10.5%. NPTN +4.3%. OPLK +4.7%. EXFO +6.6%. XXIA +1.9%. Telecom equipment makers are also up, lifted by both JDS and Ericsson's results: INFN +4.4%. CIEN +6.4%. ADTN +2.7%. JNPR +2.6%. PKT +3.6%. ALLT +3.2%. JDS mentioned on its earnings call "recent announcements and customer dialogue" bode well for 2013 telecom capex.
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  • Jan. 17, 2013, 11:23 AM
    Ciena (CIEN +3.7%) rallies after announcing Comcast will deploy the company's 6500 Packet-Optical platform, which puts Ethernet switching and optical transmission capabilities in the same box. Moreover, the 6500 will be used to support 100G optical links with the help of Ciena's WaveLogic processors - investors are counting on 100G deployments to fuel 2013 growth. Ciena moved higher yesterday in response to Adtran's Q1/2013 guidance. Rival Infinera was upgraded this morning by JPMorgan.
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  • Jan. 16, 2013, 11:26 AM
    Adtran (ADTN +4.7%) opened lower in response to its Q4 report, but has shot higher after guiding on its call for Q1 revenue to be similar to Q4 levels, and for the company to grow in 2013 as regulatory issues (presumably related to U.S. broadband spending). Analysts currently expect Q1 revenue to be down fractionally Q/Q, and for 2013 revenue to be roughly flat with 2012 levels. CIEN +3.8%.
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CIEN vs. ETF Alternatives
Company Description
Ciena Corp is a provider of equipment, software and service solutions that support the transport, switching, aggregation and management of voice, video and data traffic on communications networks.