High-speed networking specialist Ciena (CIEN -2.77%) reported first-quarter 2014 results this morning.
Ciena recorded $534 million in first-quarter sales, an 18% year-over-year surge and right in line with analyst expectations.
Adjusted earnings rose 8% to $0.13 per share, far ahead of the Street's $0.06 average estimate.
Looking ahead, Ciena's management set second-quarter revenue targets below current analyst forecasts. That was enough to take the buzz off Ciena's strong first-quarter earnings, and shares traded only 0.9% higher in pre-market action.
The converged packet optical division keeps growing in stature. These products bring together cutting-edge aspects of optical networking and traditional packet switching. The segment now accounts for 63% of Ciena's total revenue, up from 60% last quarter and 53% a year ago. By contrast, commodity optical products under the optical transport banner are becoming less important and now only represent 7.5% of Ciena's sales.
CEO Gary Smith likes Ciena's position in the market. "We continue to benefit from the strategic decisions we've made to expand our role and reach in the market, driving more consistent performance and progress toward achieving our long-term operating targets," he said in a prepared statement.