* Second-quarter adj earnings $0.02/share vs est loss
* Revenue $507.7 mln vs est $483.6 mln
* Expects third-quarter revenue $515-$545 mln vs est $509.5
* Shares rise 10 pct before the bell
June 6 Network equipment maker Ciena Corp
reported a surprise second-quarter profit on an
adjusted basis, helped by a 3 percentage-point rise in its gross
margin, and forecast stronger-than-expected revenue for the
Ciena shares jumped 10 percent before the bell.
The company said it expected third-quarter revenue of $515
million to $545 million. Analysts on average expected $509.5
million, according to Thomson Reuters I/B/E/S.
Ciena and rivals such as Cisco Systems Inc and
Infinera Corp are likely to benefit as North American
telecom companies, particularly AT&T Inc and Verizon
Communications Inc, expand their 4G services.
"Our checks suggest stronger-than-expected demand for 100G
because it is more economical to deploy 100G," Northland Capital
Markets analysts Catharine Trebnick said in a pre-earnings note,
referring to the deployment of 100 gigabit ethernet services.
Ethernet services are used by telecommunications companies
to provide high-speed networks for corporate customers.
The global 100G market is expected to grow to $4.8 billion
by 2016 from $892 million in 2012, according to market research
firm Frost & Sullivan.
Cisco, which reported strong third-quarter results last
month, also said it expected current-quarter revenue to
Ciena's net loss narrowed to $27.1 million, or 27 cents per
share, in the second quarter, from $27.8 million, or 28 cents
per share, a year earlier. The company earned 2 cents per share
Revenue rose 6.3 percent to $507.7 million.
Analysts expected an adjusted loss of 1 cent per share on
revenue of $483.6 million.
Ciena's earnings quality score fell to 63 from 84 out of 100
after its first-quarter results, according to Thomson Reuters
StarMine. This compares with a sector median of 64.
The model ranks companies according to the sustainability of
their earnings - the closer a company is to 100, the more
predictable its results are.
Ciena shares, which have gained 11 percent in the last
month, closed at $16.31 on the Nasdaq on Wednesday.