In tech, it is often grow or die. However, in some cases, a company may need to radically change in order to grow. This was the case with EMC (NYSE:EMC), which over the past couple years used its cash and stock as a means to buy other companies -- transforming a much bigger portion of its revenues from hardware to software. So far, it appears to be working.

This was also the case with Ciena (NASDAQ:CIEN). Ciena is provider of networking equipment for the telecom industry. And, yes, it suffered from the depression in the telecom industry, having many a near-death experience.

But according to its quarterly report yesterday, it appears that Ciena's aggressive M&A is starting to pay off. In the fourth quarter, revenues increased to $82 million, up 16.1% from $70.6 million in the same period a year ago. Sequential revenue growth was 8.5%.

True, the company still lost a staggering $495 million, although that was largely fueled by a $372 million goodwill impairment charge. Without the goodwill hit, its fourth-quarter net loss would have likely been more comparable to last year's $115 million.

Ciena's investors have grown accustomed to disappointment. So the latest earnings report was something to cheer about, as the stock price soared 23% to $2.88. But keep in mind that the 52-week high is $8.14.

Ciena forecasted more growth for the next quarter -- sales are expected to increase 7% to 10% relative to this last quarter.

It appears the telecom market is making a comeback. The recent rumors of a Nextel (NASDAQ:NXTL)/Sprint (NYSE:FON) deal is a clear sign. Yet, in the telecom networking space, competition is fierce. And, while things might look bright today, they can change quickly. After all, it was during the summer that Ciena warned investors of an expected shortfall.

Fool contributor Tom Taulli does not own shares mentioned in this article.