Strong 3Q Results Sends Zhone Technologies Inc (NASDAQ:ZHNE) Up 28% Last Week


Dallas, Texas 10/25/2013 (Financialstrend) – The communication equipment and components manufacturer Zhone Technologies Inc (NASDAQ:ZHNE) declared superlative results from its third quarter operations. It was able to report earnings per share of $0.05 per share which is 135% more than its 3Q12 earnings per share of -$0.14 per share. Revenue also jumped up by 7.8% to reach $31.5 million in comparison to $29 million in 3Q12.  These strong numbers were possible since Zhone has managed to wrest the pole position in the “network access solutions” market. In its recently conducted earnings call, the company had managed to complete 5300 new deployments of its cutting edge MXK solution. These installations went into supporting operations of more than 150 telecom operators. The increasing influence of this tech company can be gauged by the fact that close to telecom operators in 40 countries have utilized the services of this company in the 90 day period during July to September of this year.

In addition to “network access solutions” the company was able to bump up its total subscriber tally to 36 million through 4.3 million optical networking solution. Commenting on the sustained increase in the number of customers and their profile the Chief Marketing Officer of Zhone, Mr Brian Caskey has been quoted to have commented “Zhone remains an innovative leader in the fiber network industry, increasing its products and solutions and expanding its footprint globally. Zhone`s MXK Platforms, along with its zNID ONTs and its FTTx OLTs, provide business and residential customers with leading-edge fiber solutions that improve service value and provide opportunities for network enhancement.”

  On the back of such sustained dominance in its chosen market, the stock has shown extended vigour at the browsers. It has appreciated by 7.8% during trading on October 24 and has appreciated by 28% in the week since its earning call was conducted.