The shares of Ciena have surged more than 6% higher this morning following the release of its quarterly results. The firm reported earnings of $28.8 million, or 28 cents per share, on a 38% increase in revenue to $227.4 million. Excluding items, earnings came in at $49.6 million, or 47 cents per share, beating the Street estimate of 40 cents per share. The company stated that the jump in earnings was due to the fact that it sold more networking equipment to large phone companies such as AT&T (T).

For the full fiscal year, Ciena projects that sales will increase 27% above the $779.8 million generated in 2007. Wall Street was predicting 2008 revenue will rise almost 22% to $949.7 million.

The equity has pulled back from its morning highs, and is resting just above its 10-day and 20-day moving averages near the 26.50 level. These trendlines had capped the shares in the past 5 sessions. The stock is also struggling with resistance at its declining 10-week moving average, which it has not finished a week above since mid-November.