The business stories that matter, by Fortune's Colin Barr
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June 5, 2008, 7:33 am

Ciena’s winning streak continues

Ciena (CIEN) posted better-than-expected second-quarter earnings. The Linthicum, Md., maker of optical telecom gear earned $24 million, or 23 cents a share, for the quarter ended April 30, up from the year-ago $13 million, or 14 cents a share. Excluding certain costs, earnings rose to 40 cents a share from 26 cents a year earlier, beating the 37-cent Thomson Financial analyst estimate. Revenue rose 7% from first-quarter levels and 25% from a year ago to $242 million, above the $238 million analyst target.

“Ciena continues to execute against a business plan and strategy that has driven faster-than-market growth while delivering solid operating margin and net income,” said CEO Gary Smith. As Fortune.com’s Scott Moritz noted earlier this year, Ciena is taking market share from larger rivals such as Nortel (NT) and Alcatel-Lucent (ALU), due to its nimble response to shifting demands from big telco customers. Shares of the company are well off their highs of the past year as the telecom-equipment industry endures its latest retrenchment, but Ciena rose 2% in premarket trading Thursday.

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Colin Barr covers business and finance for Fortune.com. Previously he was an editor at TheStreet.com and author of the weekly Five Dumbest Things on Wall Street column, and an editor at Dow Jones Newswires.
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