Ciena Corporation (NYSE:CIEN) stock rose 3.07% (As on June 7, 11:05:54 AM UTC-4, Source: Google Finance) after the company posted better-than-expected results for the second quarter of FY 23, however, guidance was a little disappointing, with Ciena warning sales could come in below prior expectations both in Q3 and for the year. One of Ciena’s customers represented 10.9% of the company’s total revenue. The company’s inventories totaled $1.1B, while headcount closed the quarter at 8,385. The company said its improving supply chain dynamics helped to boost its results as it was able to ship more to customers. Cash and investments totaled $1.34 billion. The company generated cash flow from operations of $229.8 million. Average days’ sales outstanding (DSOs) were 97. Accounts receivable, net balance was $1.04 billion. Unbilled contract assets, net balance was $180.0 million. Ciena’s adjusted (non-GAAP) net income for the fiscal second quarter 2023 was $110.4 million, which compares to an adjusted (non-GAAP) net income of $76.4 million, for the fiscal second quarter 2022.

CIEN in the second quarter of FY 23 has reported the adjusted earnings per share of 74 cents, beating the analysts’ estimates for the adjusted earnings per share of 61 cents. The company had reported 19 percent increase in the adjusted revenue to $1.13 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $1.09 billion. Ciena increased Total Networking Platforms revenue by 24.6% year-over-year to $914.9 million. However, Total Global Services decreased by 0.7% year-over-year to $127.8 million.

Ciena guided to $1 billion to $1.08 billion in third-quarter revenue, less than the $1.1 billion that Wall Street was expecting. Management furthermore said that full year-sales will be up only 18% to 22%, lowering the floor on its previous guidance range of 20% to 22%.

Additionally, the company is adding to the diversification and differentiation with an eye towards accretive TAM expansion into faster-growing markets. The TAM expansion in optical will target the emerging opportunity in coherent plugs and components, including inside the data center over the years to come. The company has announced the game-changing wave router platform, an industry-first platform architecture optimally designed for the Converged metro, which will come online this year. On the portfolio side, in optical, the company has added 14 new customers in Q2 for WaveLogic 5 Extreme, bringing the total customer count there to 228. The company has another record shipment quarter in Q2 for WaveLogic 5 E, bringing the total of modems shipped to date to 75,000.