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What: Shares of communications equipment maker Ciena
So what: Third-quarter revenue rose 12% to $435.3 million while adjusted profits improved to $0.08 a share. Analysts were expecting an $0.08 per share loss on $443.25 million in revenue. Operational improvements appear to be taking hold.
Now what: Indeed, in the Barron's interview, Smith said higher-margin gear such as switches comprised a greater portion of sales. The resulting improvement in gross margin trickled all the way down to the bottom line. Is this turnaround sustainable? You tell me. Please weigh in using the comments box below.
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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.