Ciena Corp (NYSE:CIEN) stock rose 3.94% (As on March 12, 12:32:00 AM UTC-4, Source: Google Finance) after the company’s first-quarter results surpassed Wall Street expectations. Strong demand in the cloud and artificial intelligence (AI) segments aided Ciena’s growth during the quarter. The company noted that it is aware of potential disruptions due to tariffs but added that bandwidth demand will continue to grow. Ciena’s adjusted (non-GAAP) net income for the fiscal first quarter 2025 was $94.0 million which compares to an adjusted (non-GAAP) net income of $96.8 million, for the fiscal first quarter 2024.
Moreover, the company saw the ongoing improvement in Q1 in revenue and orders, with North America leading the way and international markets continuing to show positive progress. Service provider revenue in Q1 increased 14% year-over-year, comprising approximately 51% of total revenue. In Q1, total direct cloud revenue comprised 32% of the total revenue, with five cloud providers in the top 10 customers for the quarter. Further, WaveLogic 6 Extreme is off to an incredibly strong start in the marketplace, gaining momentum with customers who seek increased capacity and reduced space and power requirements in their networks. In Q1, the company has added 20 new customers for WaveLogic 6E. And the company continues to ship the WaveLogic 5 solution. In Q1, the company reach more than 1,600 WaveLogic modems shipped worldwide, 160,000. Confirming the WaveLogic portfolio is the foundation for world-class network backbones for the AI and cloud economy, both terrestrial and subsea. the company is also on track for general availability of the 800 gig WaveLogic 6 nano pluggable solution in the first half of this calendar year and expect deployments later in the calendar year for Metro DCI use cases.
CIEN in the first quarter of FY25 has reported the adjusted earnings per share of 64 cents, beating the analysts’ estimates for the adjusted earnings per share of 41 cents. The company had reported the adjusted revenue growth of 17 percent to $1.07 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $1.05 billion.
Ciena’s Q2 guidance pegs revenue in the range of $1.05 billion and $1.13 billion – its midpoint of $1.09 billion is higher than the consensus estimate of $1.07 billion. The networking systems and software provider expects fiscal year 2025 revenue to grow between 8% and 11%, with a bias towards the high end.