HANOVER, Md.–(BUSINESS WIRE)–Ciena Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal second quarter ended April 27, 2024.
- Q2 Revenue: $910.8 million
- Q2 Net Income (Loss) per Share: $(0.12) GAAP; $0.27 adjusted (non-GAAP)
- Share Repurchases: Repurchased approximately 1.1 million shares of common stock for an aggregate price of $57.0 million during the quarter
“Our fiscal second quarter performance underscores the strength in our business amid a challenging near-term environment as service providers continue to work through existing inventory,” said Gary Smith, president and CEO, Ciena. “With continued robust growth in bandwidth demand, we remain focused on extending our leadership in optical as a foundation for expanding our addressable market.”
For the fiscal second quarter 2024, Ciena reported revenue of $910.8 million as compared to $1.13 billion for the fiscal second quarter 2023.
Ciena’s GAAP net loss for the fiscal second quarter 2024 was $(16.8) million, or $(0.12) per diluted common share, which compares to a GAAP net income of $57.7 million, or $0.38 per diluted common share, for the fiscal second quarter 2023.
Ciena’s adjusted (non-GAAP) net income for the fiscal second quarter 2024 was $39.4 million, or $0.27 per diluted common share, which compares to an adjusted (non-GAAP) net income of $110.4 million, or $0.74 per diluted common share, for the fiscal second quarter 2023.
Fiscal Second Quarter 2024 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.
|
|
|
GAAP Results (unaudited) |
|||||||||
|
|
|
Q2 |
|
Q2 |
|
Period Change |
|||||
|
|
|
FY 2024 |
|
FY 2023 |
|
Y-T-Y* |
|||||
|
Revenue |
|
$ |
910.8 |
|
|
$ |
1,132.7 |
|
|
(19.6 |
)% |
|
Gross margin |
|
|
42.7 |
% |
|
|
43.1 |
% |
|
(0.4 |
)% |
|
Operating expense |
|
$ |
392.6 |
|
|
$ |
384.9 |
|
|
2.0 |
% |
|
Operating margin |
|
|
(0.4 |
)% |
|
|
9.1 |
% |
|
(9.5 |
)% |
|
|
|
Non-GAAP Results (unaudited) |
|||||||||
|
|
|
Q2 |
|
Q2 |
|
Period Change |
|||||
|
|
|
FY 2024 |
|
FY 2023 |
|
Y-T-Y* |
|||||
|
Revenue |
|
$ |
910.8 |
|
|
$ |
1,132.7 |
|
|
(19.6 |
)% |
|
Adj. gross margin |
|
|
43.5 |
% |
|
|
43.7 |
% |
|
(0.2 |
)% |
|
Adj. operating expense |
|
$ |
333.9 |
|
|
$ |
338.1 |
|
|
(1.2 |
)% |
|
Adj. operating margin |
|
|
6.8 |
% |
|
|
13.8 |
% |
|
(7.0 |
)% |
|
Adj. EBITDA |
|
$ |
85.8 |
|
|
$ |
180.6 |
|
|
(52.5 |
)% |
|
* Denotes % change, or in the case of margin, absolute change |
|||||||||||
|
|
|
Revenue by Segment (unaudited) |
||||||||
|
|
|
Q2 FY 2024 |
|
Q2 FY 2023 |
||||||
|
|
|
Revenue |
|
%** |
|
Revenue |
|
%** |
||
|
Networking Platforms |
|
|
|
|
|
|
|
|
||
|
Optical Networking |
|
$ |
560.2 |
|
61.5 |
|
$ |
784.5 |
|
69.3 |
|
Routing and Switching |
|
|
116.1 |
|
12.7 |
|
|
130.4 |
|
11.5 |
|
Total Networking Platforms |
|
|
676.3 |
|
74.2 |
|
|
914.9 |
|
80.8 |
|
|
|
|
|
|
|
|
|
|
||
|
Platform Software and Services |
|
|
85.4 |
|
9.4 |
|
|
69.4 |
|
6.1 |
|
|
|
|
|
|
|
|
|
|
||
|
Blue Planet Automation Software and Services |
|
|
14.4 |
|
1.6 |
|
|
20.6 |
|
1.8 |
|
|
|
|
|
|
|
|
|
|
||
|
Global Services |
|
|
|
|
|
|
|
|
||
|
Maintenance Support and Training |
|
|
77.4 |
|
8.5 |
|
|
73.2 |
|
6.5 |
|
Installation and Deployment |
|
|
43.8 |
|
4.8 |
|
|
39.5 |
|
3.5 |
|
Consulting and Network Design |
|
|
13.5 |
|
1.5 |
|
|
15.1 |
|
1.3 |
|
Total Global Services |
|
|
134.7 |
|
14.8 |
|
|
127.8 |
|
11.3 |
|
|
|
|
|
|
|
|
|
|
||
|
Total |
|
$ |
910.8 |
|
100.0 |
|
$ |
1,132.7 |
|
100.0 |
|
** Denotes % of total revenue |
||||||||||
Additional Performance Metrics for Fiscal Second Quarter 2024
|
|
|
Revenue by Geographic Region (unaudited) |
||||||||
|
|
|
Q2 FY 2024 |
|
Q2 FY 2023 |
||||||
|
|
|
Revenue |
|
% ** |
|
Revenue |
|
% ** |
||
|
Americas |
|
$ |
662.9 |
|
72.8 |
|
$ |
794.4 |
|
70.1 |
|
Europe, Middle East and Africa |
|
|
155.8 |
|
17.1 |
|
|
173.4 |
|
15.3 |
|
Asia Pacific |
|
|
92.1 |
|
10.1 |
|
|
164.9 |
|
14.6 |
|
Total |
|
$ |
910.8 |
|
100.0 |
|
$ |
1,132.7 |
|
100.0 |
|
** Denotes % of total revenue |
||||||||||
- One 10%-plus customer represented a total 13.8% of revenue
- Cash and investments totaled $1.42 billion
- Cash flow from operations totaled $58.5 million
- Average days’ sales outstanding (DSOs) were 98
- Accounts receivable, net balance was $840.1 million
- Unbilled contract asset, net balance was $151.9 million
- Inventories totaled $1.02 billion, including:
- Raw materials: $638.9 million
- Work in process: $68.2 million
- Finished goods: $331.3 million
- Deferred cost of sales: $43.7 million
- Reserve for excess and obsolescence: $(59.5) million
- Product inventory turns were 1.6
- Headcount totaled 8,627
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, X, the Ciena Insights blog, or visit www.ciena.com.
