Ciena Corporation (NYSE:CIEN) stock rose 0.37% (As on September 2, 11:31:16 AM UTC-4, Source: Google Finance) after the company reported third quarter earnings that missed analysts’ forecasts and revenue that fell short of expectations. Ciena’s adjusted (non-GAAP) net income for the fiscal third quarter 2022 was $49.0 million, which compares to an adjusted (non-GAAP) net income of $144.9 million for the fiscal third quarter 2021. Non-telco represented approximately 38% of total revenue. APAC region represented 15% of total revenue. Routing and Switching revenue increased 45% YoY, in part reflecting strong contribution from the recently added Vyatta platform. Platform Software and Services increased 11% YoY, representing 7% of total revenue.

Moreover, the GAAP R&D investment was approximately 17% of total revenue. There are 754 100G+ total customers, which includes 13 new wins on WaveLogic Ai and 14 new wins on WaveLogic 5 Extreme. The company is gaining business momentum with the Universal Aggregation and XGS-PON solution. The company has added 25 new Adaptive IP customers in Q3 bringing the total to nearly 200. IP/Optical convergence leveraging WL5n ramping both 51xx and 81xx platforms over ELS & RLS.

CIEN in the third quarter of FY 22 has reported the adjusted earnings per share of 33 cents, missing the analysts’ estimates for the adjusted earnings per share of 34 cents. The company had reported the adjusted revenue of $868 million in the third quarter of FY 22, missing the analysts’ estimates for revenue of $905 million.

Additionally, the total shareholder return five year CAGR of 19%.  As part of our $1 billion stock repurchase program, we repurchased approximately 3.2 million shares during the quarter for $155 million.

For the fourth quarter, the company expects revenue to be in the range of $800M to $880M, Adjusted Gross Margin to be approximately 40% and Adjusted Operating Expense to be approximately $315M.

Meanwhile, the length and severity of current supply conditions will negatively impact both overall industry growth rates and the revenue. Supply chain constraints, increased component costs, expedite fees and logistics costs will adversely impact gross margin. As new wins are monetized, the company expects the revenue mix to include a larger proportion of lower-margin common equipment. Longer-term fundamental demand drivers, including increasing demand for bandwidth, adoption of cloud architectures and network automation requirements remain strong.