Ciena Corporation (NYSE:CIEN) Q3 2019 Earnings Conference Call Transcript
Sep 05, 2019 • 08:30 am ET
Gary B. Smith
far in fiscal 2019, recall that as we entered the year we indicated that we would significantly increase profitability this year and beyond.
In Q3, we performed extremely well on measures of profitability, including 16.2% adjusted operating margin and adjusted earnings per share of $0.71. Our consistent and differentiated financial performance continues to essentially be driven by outstanding execution of our strategy, as well as a solid overall demand environment and favorable industry dynamics.
Specifically, we continue to diversify our business across geographies and customer segments. As an example of this in Q3, our top 10 customers were comprised of three web-scale companies, three North American service providers, two international service providers, one MSO and one wholesale network provider. Importantly, we also continue to have the most compelling portfolio today and the most credible and robust roadmap for future development, made possible by our considerable investment capacity, capability and vertical integration.
We are the strongest offering in the market today for Coherent optics. This was recently recognized by analyst firm IHS Markit its 2019 network hardware vendor scorecard report, in which Ciena secured the highest overall global score. During the quarter, in a vote of confidence of our ability to be first-to-market and well ahead of the competition with single wavelength 800 gig systems, we booked our first orders for our WaveLogic 5 powered 65000 platform with a large subsea customer in the Asia-Pacific region.
Importantly, I would highlight that our degree of vertical integration means that we are not beholden to the merchant market and its delivery dates. Rather, we are in full control of our own development timelines. Also in optical during the quarter, our momentum continued with Tier 1 service providers including a sizable award for a 400 gig metro optical architecture with a large North American customer. And we also won a new Metro in long-haul build with the Tier 1 MSO. With respect to packet networking, our continued investment in this portfolio to introduce new features and functionality is driving new business. In the third quarter, we landed a significant packet win with a Tier 1 service provider customer in North America. We also secured a design win in EMEA with a Tier 1 service provider.
With this momentum, we are expecting a strong finish to the year for our overall Packet Networking portfolio. Our Blue Planet portfolio also continues to evolve the mature drawing increased customer engagement. In fact, we recently solidified a new win with a service provider in the APAC region for the entire suite of Blue Planet Intelligent Automation Software Solutions. And overall, I would say that our automation software portfolio continues to grind traction globally, and in fact, we remain on track to deliver on our FY 2019 revenue target of between $50 million and $60 million.
In summary, our ability to deliver the industry's leading innovation, while diversifying our business and leveraging our global scale is the foundation of our success. Our strong market and technology position and continued