HANOVER, Md.–(BUSINESS WIRE)–Ciena Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal first quarter ended January 28, 2023.
- Q1 Revenue: $1.06 billion
- Q1 Net Income per Share: $0.51 GAAP; $0.64 adjusted (non-GAAP)
“We delivered record revenue in the first quarter, reflecting continued gradual improvement in the supply chain environment and strong customer demand for our market-leading technology,” said Gary Smith, president and CEO of Ciena. “With strong momentum across our business, supported by robust fundamental drivers and visibility provided by our backlog, we remain confident in our ability to continue to take market share.”
For fiscal first quarter 2023, Ciena reported revenue of $1.06 billion as compared to $844.4 million for the fiscal first quarter 2022.
Ciena’s GAAP net income for the fiscal first quarter 2023 was $76.2 million, or $0.51 per diluted common share, which compares to a GAAP net income of $45.8 million, or $0.29 per diluted common share, for the fiscal first quarter 2022.
Ciena’s adjusted (non-GAAP) net income for the fiscal first quarter 2023 was $95.6 million, or $0.64 per diluted common share, which compares to an adjusted (non-GAAP) net income of $72.6 million, or $0.47 per diluted common share, for the fiscal first quarter 2022.
Fiscal First Quarter 2023 Performance Summary
The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to the prior year. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.
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GAAP Results (unaudited) |
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Q1 |
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Q1 |
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Period Change |
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FY 2023 |
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FY 2022 |
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Y-T-Y* |
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Revenue |
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$ |
1,056.5 |
|
|
$ |
844.4 |
|
|
25.1 |
% |
|
Gross margin |
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43.2 |
% |
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|
45.5 |
% |
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(2.3 |
)% |
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Operating expense |
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$ |
370.7 |
|
|
$ |
324.2 |
|
|
14.3 |
% |
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Operating margin |
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8.1 |
% |
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|
7.1 |
% |
|
1.0 |
% |
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|
Non-GAAP Results (unaudited) |
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Q1 |
|
Q1 |
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Period Change |
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FY 2023 |
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FY 2022 |
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Y-T-Y* |
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Revenue |
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$ |
1,056.5 |
|
|
$ |
844.4 |
|
|
25.1 |
% |
|
Adj. gross margin |
|
|
43.7 |
% |
|
|
46.2 |
% |
|
(2.5 |
)% |
|
Adj. operating expense |
|
$ |
329.3 |
|
|
$ |
290.0 |
|
|
13.6 |
% |
|
Adj. operating margin |
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|
12.6 |
% |
|
|
11.8 |
% |
|
0.8 |
% |
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Adj. EBITDA |
|
$ |
155.1 |
|
|
$ |
123.7 |
|
|
25.4 |
% |
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* Denotes % change, or in the case of margin, absolute change |
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Revenue by Segment (unaudited) |
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Q1 FY 2023 |
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Q1 FY 2022 |
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Revenue |
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%** |
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Revenue |
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%** |
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Networking Platforms |
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Converged Packet Optical |
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$ |
735.6 |
|
69.6 |
|
$ |
540.9 |
|
64.1 |
|
Routing and Switching |
|
|
119.5 |
|
11.3 |
|
|
85.7 |
|
10.1 |
|
Total Networking Platforms |
|
|
855.1 |
|
80.9 |
|
|
626.6 |
|
74.2 |
|
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|
|
|
|
|
|
|
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|
Platform Software and Services |
|
|
73.4 |
|
6.9 |
|
|
72.9 |
|
8.6 |
|
|
|
|
|
|
|
|
|
|
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|
Blue Planet Automation Software and Services |
|
|
15.4 |
|
1.5 |
|
|
21.1 |
|
2.5 |
|
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Global Services |
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Maintenance Support and Training |
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|
67.9 |
|
6.4 |
|
|
72.5 |
|
8.6 |
|
Installation and Deployment |
|
|
34.6 |
|
3.3 |
|
|
40.4 |
|
4.8 |
|
Consulting and Network Design |
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|
10.1 |
|
1.0 |
|
|
10.9 |
|
1.3 |
|
Total Global Services |
|
|
112.6 |
|
10.7 |
|
|
123.8 |
|
14.7 |
|
|
|
|
|
|
|
|
|
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Total |
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$ |
1,056.5 |
|
100.0 |
|
$ |
844.4 |
|
100.0 |
|
** Denotes % of total revenue |
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Additional Performance Metrics for Fiscal First Quarter 2023 |
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Revenue by Geographic Region (unaudited) |
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|
Q1 FY 2023 |
|
Q1 FY 2022 |
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|
|
Revenue |
|
% ** |
|
Revenue |
|
% ** |
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|
Americas |
|
$ |
765.1 |
|
72.4 |
|
$ |
595.1 |
|
70.5 |
|
Europe, Middle East and Africa |
|
|
152.8 |
|
14.5 |
|
|
150.8 |
|
17.8 |
|
Asia Pacific |
|
|
138.6 |
|
13.1 |
|
|
98.5 |
|
11.7 |
|
Total |
|
$ |
1,056.5 |
|
100.0 |
|
$ |
844.4 |
|
100.0 |
|
** Denotes % of total revenue |
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- Two customers represented 10%-plus of revenue combining for a total of 25.7% of revenue
- Cash and investments totaled $1.2 billion
- Cash flow used in operations totaled $265.6 million
- Average days’ sales outstanding (DSOs) were 103
- Accounts receivable, net balance was $1.05 billion
- Unbilled contract asset, net balance was $148.8 million
- Inventories totaled $1.18 billion, including:
- Raw materials: $846.6 million
- Work in process: $18.4 million
- Finished goods: $300.7 million
- Deferred cost of sales: $51.3 million
- Reserve for excess and obsolescence: $(38.9) million
- Product inventory turns were 1.7
- Headcount totaled 8,361
About Ciena. Ciena (NYSE: CIEN) is a global leader in networking systems, services, and software. We build the most adaptive networks in the industry, enabling customers to anticipate and meet ever-increasing digital demands. For three-plus decades, Ciena has brought our humanity to our relentless pursuit of innovation. Prioritizing collaborative relationships with our customers, partners, and communities, we create flexible, open, and sustainable networks that better serve all users—today and into the future. For updates on Ciena, follow us on LinkedIn, Twitter, the Ciena Insights blog, or visit www.ciena.com.
