Benzinga | Jun 3, 2021 09:24AM EDT

Ciena Stock Gains on Q2 Earnings Beat, Expanding Gross Margins

* Ciena Corp (NYSE: CIEN) reported a second-quarter FY21 revenue decline of 6.7% year-on-year to $833.9 million, beating the analyst consensus of $829.3 million.

* Product revenue declined 9.4% Y/Y to $670 million, while Services revenue grew 6.3% Y/Y to $163.9 million.

* Total Networking Platform revenue declined 11.3% Y/Y to $637.3 million, and Platform Software and Services revenue rose 26% Y/Y to $56.7 million.

* Blue Planet Automation Software and Services revenue rose 59.3% Y/Y to $23.9 million. Total Global Services revenue remained flat at $116 million.

* Adjusted gross margin expanded 230 basis points to 49.2%, while the adjusted operating margin contracted 210 basis points to 15.8%.

* Adjusted EPS of $0.62 beat the analyst consensus of $0.48.

* Ciena generated $217.7 million in operating cash flow and held $1.2 billion in cash and equivalents.

* The company bought back stock worth $26.2 million during the quarter.

* Price action: CIEN shares traded higher by 5.31% at $57.30 in the premarket session on the last check Thursday.