Shares of optical networking systems developer, Infinera Corp. (Nasdaq: INFN) rallied more than 26 percent from Thursday’s closing price, in morning trading on Friday after the company posted a smaller second quarter net loss and higher revenue over the same period a year ago.

For the three months ended June 26, the company posted a net loss of $9.6 million, or 10 cents per share, compared with a loss of $27.1 million, or 28 cents per share, in the same period a year earlier. Infinera’s revenue rose 62 percent to $111.4 million, from $68.9 million a year ago. Excluding stock compensation expenses, Infinera earned 3 cents per share in the latest quarter.

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Analysts, on average, expected a loss of 5 cents per share on revenue of $99.5 million, according to a poll by Thomson Reuters. Analyst estimates exclude stock options costs.

“We achieved new records for overall quarterly revenue and bookings, including increased shipments of tributary adapter modules, and we posted higher gross margins, achieved positive cash flow, and earned a profit on a non-GAAP basis,” said Infinera’s CEO, Tom Fallon in a statement.

Additional highlights from the quarter include positive cash from operations of $11.2 million, and higher gross margins (42% vs. 39% for the same period a year ago).

Infinera expects Q3 revenue in the range of  $125 million and $128 million, gross margins of approximately 45 percent to 47 percent, and earnings of between $0.07 and $0.10 per share, on a non-GAAP basis.