Ciena Operating Earnings Triple

Ciena Corp. said operating earnings more than tripled in its fiscal second quarter, beating Wall Street forecasts, thanks to strong demand for the communications equipment maker’s next-generation optical networks.

The company also said Chief Operating Officer Gary Smith had been promoted to chief executive. Smith, 40, will retain the post of president. Chairman and CEO Patrick Nettles, 57, will immediately assume the role of executive chairman and will focus on long-term strategic direction.

The Linthicum, Md.-based company said earnings rose to $65.4 million, or 20 cents a share, from $19 million, or 6 cents, a year ago, as revenue surged 128% to $425 million. The results, which exclude charges for its recent acquisition of Cyras Systems as well as other one-time items, exceeded the 16-cent average estimate of analysts polled by First Call/Thomson Financial. The company also reiterated its profit and sales forecasts for fiscal 2001. Some investors had expected Ciena to lower its outlook.

Ciena shares fell $2.15, or 3.7%, to close at $56.75 on Nasdaq.