Shares of Ciena Corp (CIEN) surged 5.23% on Friday after the company reported strong fiscal fourth quarter results and provided an optimistic outlook driven by growth in cloud and artificial intelligence (AI) demand.
In the fourth quarter, Ciena reported revenue of $1.12 billion, marking the second consecutive quarter of book-to-bill above 1. The company also achieved its largest quarter ever for shipments of line systems, driven by demand from large cloud providers.
On the earnings call, Ciena highlighted the launch of its WaveLogic 6 Extreme, which makes it the only provider of 1.6 terabit capable coherent modems. This reinforces the company's technology leadership and positions it well to capitalize on the growing demand for high-bandwidth solutions.
Looking ahead, Ciena expects fiscal 2025 revenue growth in the range of 8% to 11%, driven by strong orders from cloud providers and continued momentum from service providers. The company is benefiting from the increasing influence of cloud and AI, which is driving bandwidth growth across networks.
Ciena's CEO, Gary Smith, emphasized the company's strategy to extend its leadership in core optical networking while expanding into adjacent markets like data center interconnect and metro routing. The company is well-positioned to address the growing need for scalability, resilience, and automation as cloud and AI traffic continues to surge.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.