Ciena (NYSE:CIEN), a leading manufacturer of optical equipment used in telecommunications networks, saw its stock climb 16.3% from $18.75 to $21.80, contributing 75 basis points to the Fund’s return. The company delivered strong revenue growth and gained market share, driven by higher spending from telecom companies. Ciena’s gross margin also exceeded expectations, reaching its highest level since 2010. We believe Ciena is well-positioned for future gains because of its expanding presence in data centers and international markets, as well as increased spending by telecom carriers.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund third-quarter 2016 commentary.
