Ciena reported Q2 revenue of $74.7 million, representing a 12.5% sequential increase and an increase of 1.6% for the same period a year ago. On a generally accepted accounting principles (GAAP) basis, CIENA’s reported net loss for the quarter was $76.2 million, or a net loss of $0.16 per share.
The company ended the quarter with $1.46 billion in cash and long-term investments.
During Q2, Ciena closed its acquisitions of Catena Networks and Internet Photonics. The company also recently announced expected annualized cost savings of $60 to $70 million, including $55 to $65 million at the operating expense level, associated with closing the Company’s San Jose, Calif., facility and related headcount reductions.
“While it appears the industry has achieved a certain level of stability, customers are maintaining an overall cautious and focused approach to spending,” said CIENA CEO Gary Smith. “Spending in the core of the network remains a secondary priority as service providers focus on getting more users on to their networks and generating more revenue from that traffic. With the addition of new service delivery platforms from Catena and Internet Photonics, CIENA is better positioned to benefit from that focus. ”
Due to the broader portfolio, the company expects Q3 revenue to increase by as much as 30% from Q2. http://www.ciena.com
