Ciena's Q3 profits soar 42 per cent

An increase in revenue pushed profits up 42 per cent for networking-equipment maker Ciena Corporation during its most recent quarter.

The Maryland-based company, which has a significant presence in Ottawa, reported revenue of US$670.6 million during the three-month period that ended on July 31. That’s up 11 per cent from US$602.9 million during the same period last year.

The company’s GAAP net income during the quarter was US$33.5 million, a 42 per cent increase from the $23.6 million it reported a year ago.

The company’s adjusted, non-GAAP, earnings were US$67.6 million, up from $50.7 million at the same time in 2015.

“We posted strong results on all financial operating metrics in our fiscal third quarter, continuing a trend of consistently improving financial performance and demonstrating the value of having a diversified business to manage through market dynamics,” Gary B. Smith, the company’s president and CEO, said in a release.

Ciena is forecasting continued growth, projecting revenues of between $700 and $730 million for its fourth quarter.

“Through strategic investments to broaden our portfolio, market application and customer and geographic base, we have positioned Ciena to deliver sustainable long-term growth and increased profitability,” Mr. Smith said.

Shares in Ciena (NYSE: CIEN) were up US$1.62 to US$23.08 in late afternoon trading on Thursday.

Ciena employs more than 1,500 people in Ottawa.