Ciena's adjusted earnings per share were $0.35, exceeding analyst estimates of $0.26 per share.

Ciena Corporation reported its fiscal third-quarter results, revealing earnings of $14.23 million, or $0.10 per share, a decline from $29.73 million, or $0.20 per share, in the same quarter last year.

Despite the drop in earnings, Ciena's revenue for the quarter reached $942.31 million, surpassing analysts' expectations of $927.46 million.

However, this revenue reflects an 11.8% decrease compared to $1.07 billion in the same quarter last year.

The company achieved an adjusted gross margin of 43.7%, an improvement from 42.7% a year ago, although its adjusted operating margin fell to 8% from 12%.

Strong demand for network capacity, particularly driven by cloud adoption and AI-driven traffic, has contributed positively to the company's performance.

Looking ahead, Ciena projects revenue for the fourth quarter to be between $1.06 billion and $1.14 billion, indicating positive business momentum.

Investors responded favorably to the results, with Ciena's stock rising approximately 2% in premarket trading, reflecting a market capitalization of about $7.91 billion.

The company has made strides in securing new customers internationally, expanding its presence in markets such as India, South Asia, Germany, and Scandinavia.

Additionally, CFO Jim Moylan announced his retirement, prompting the company to begin the search for a successor.

Ciena continues to face challenges with elevated inventory levels, which are expected to normalize by the end of the year due to ongoing supply chain issues.

CEO Gary Smith expressed optimism about Ciena's future, highlighting increased momentum with cloud providers and a gradual recovery with service providers.