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Ciena CEO: We’re Very Well Positioned to Ride the Growth Curve

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    Ciena CEO Gary Smith on the company’s outlook for growth.

  • Duration 4:27
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C -- a is a company that makes things go through the pipes and the band with more quickly for your Smartphones and ipads.

It -- street expectations and lowered guidance for the current quarter but the stock is hanging tough.

Gap -- higher by more than 5% at the open -- course has since pulled back hugging the flat line but what are investors seeing it.

Heading into next year and how will competitors like.

Big week Cisco.

CM as current run -- sang it well but.

Test Gary Smith he's the -- CEO his joining us and Fox Business exclusive from Baltimore Maryland good to -- Gary thank you for joining us.

Thank you about -- -- this the first question I can't in my mind was.

Every kid everybody we know what is buying the brand is Smartphone constantly upgrading I would've thought that you wouldn't miss your estimates because the Telecom guys would need to be buy more equipment to absorb the new and bigger traffic what went wrong in this quarter.

Well I think in in the big picture of things in our revenues are up 5% for the -- We continued to expand in a market that actually had declined.

Last year about 7% so we we took market -- for show law.

This year -- we're very well positioned you know in fact our our backlog.

Increased you're on you have by 25%.

So where you know we're very well positioned to right -- growth -- And some some investors totally agree there you know you're up 46%.

Over the past year huge -- -- though.

-- 30% of the float shorted but they're getting they're getting squeezed over this past -- -- this is not playing out for them but.

What one -- we do know is that some Telecom providers at least the big waiting a look at Verizon AT&T Deutsche Telekom.

Some of them are putting off big capital expenditures big equipment upgrades.

Why is that and that of course would be beneficial to you if they didn't do something like that but what's going on there.

What I think you know the this industry -- the dynamics around that are actually very positive as you said you know capacity the requirement for.

All these applications.

The -- vol phones you know continues to increase exponentially and we haven't even begun yet to talk about.

Machines communicating to each other.

So you know the dynamics are generally very positive but you know we're not immune from the general macro uncertainty is and I and I think that.

That's certainly impacted that you know our industry last -- -- -- give me an example of machines communicating with each other what more will we see.

Well I think you're saying things like cut cause now having a lot more capability and -- activity you talked about Google Maps etc.

You know having not availability between the machines from cause.

You know to things like cents a device is the utilities so that they can automatically.

Measure things without having to send people out.

And Saudi intelligence gathered from that is enormous and we're really at the very very early stages of that communication -- Gary in of one analysts we spoke with threw down the gauntlet and -- -- and said that that your cash flow in your margins could be negative by 2015 what do you say that that.

Well you know I have people are entitled to -- opinions we've actually performed extremely well you know we've generated over a hundred million dollars ending cash this year -- you know what profitable and we think -- 2013.

Will be an even better you forest is Europe coming back how's that business there.

I would describe it as staple we don't have a lot of exposure frankly to Southern Europe so we're quite well placed.

You know -- mainly in in Northern Europe which has been somewhat less affected so we're pretty stable that.

We're seeing good growth and not Asia Pacific and Latin America Aaron and frankly the United States as well.

That's always good to hear you know and then of course the competitors.

Cisco possibly coming in you know they said they want into the optical switches business and really ramping up there how are you gonna stay ahead of them.

Well now see cameras are very specialist play a -- very focused we're not trying to be all things to wall people.

You know and as such we have a lot of leading technology in this space and we've already won a lot of the major deals around the world ready to roll out.

Quickly that last year we spoke she said you're hiring for this year are you hiring now going forward into 2013.

We are actually hiring selectively anyway thousand inferred saying yes we are actually doing some hiring in the United States could deceive -- thank you so much have a happy holiday.

Thank you tell us and he can't not -- stocks up 46%.

Over the past year.

He is a little rich to 32 but.

Gary Smith saying that that they've got a good your -- closing.

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