Ciena, a telecommunications networking equipment company that competes with Huawei, has gained some business since the United States banned many of the Chinese company’s products.
But the impact isn’t as pronounced in the United States as you might think. In a conference call with analysts Thursday morning following the company’s latest earnings report, CEO Gary Smith said that more customers outside America are shying away from Huawei.
“A lot of the international carriers are looking to reduce their dependence over time,” he said.
In an interview with CNN Business after the conference call, Smith added that European companies in particular are starting to buy more networking gear and data center equipment from Ciena (CIEN) and less from Huawei.
That boost from European customers helped Ciena report revenue and earnings that topped forecasts. Sales rose 17% from a year ago while profits were up more than 70% from the same period a year ago.
Even so, the stock fell 7% Thursday, giving up earlier gains from premarket trading, after Ciena CFO James Moylan said during the analyst call that “orders moderated somewhat” in the quarter.
Smith added during the call that a slo