Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
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.
Interested in more info on Ciena? Add it to your watchlist.
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.
More from The Motley Fool
4 Takeaways From Ciena's Long-Term Update
On its 25th birthday the networking equipment vendor reported fourth-quarter results and also gave a longer-term view.
3 Reasons Ciena Corporation Is Staying Ahead of the Competition
The company's "secret sauce" for outperformance lies in these three attributes.
3 Things Ciena Management Wants You to Know
Management guided for a soft upcoming quarter, but encouraged investors to focus on the big picture.