HANOVER, Md.--(BUSINESS WIRE)--Jun. 6, 2023-- Ciena Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal second quarter ended April 29, 2023.
- Q2 Revenue: $1.13 billion
- Q2 Net Income per Share: $0.38 GAAP; $0.74 adjusted (non-GAAP)
"We delivered outstanding results for the fiscal second quarter as we were able to ship more to customers with continued improvements in supply chain dynamics," said Gary Smith, president and CEO of Ciena. "We are confident in our ability to take market share given our backlog and strategic industry position with market-leading technologies and an expanding addressable market."
For fiscal second quarter 2023, Ciena reported revenue of $1.13 billion as compared to $949.2 million for the fiscal second quarter 2022.
Ciena's GAAP net income for the fiscal second quarter 2023 was $57.7 million, or $0.38 per diluted common share, which compares to a GAAP net income of $38.9 million, or $0.25 per diluted common share, for the fiscal second quarter 2022.
Ciena's adjusted (non-GAAP) net income for the fiscal second quarter 2023 was $110.4 million, or $0.74 per diluted common share, which compares to an adjusted (non-GAAP) net income of $76.4 million, or $0.50 per diluted common share, for the fiscal second quarter 2022.
Fiscal Second 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.
|
GAAP Results (unaudited) |
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|
|
Q2 |
|
Q2 |
|
Period Change |
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|
FY 2023 |
|
FY 2022 |
|
Y-T-Y* |
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|
Revenue |
$ |
1,132.7 |
|
|
$ |
949.2 |
|
|
19.3 |
% |
|
Gross margin |
|
43.1 |
% |
|
|
42.3 |
% |
|
0.8 |
% |
|
Operating expense |
$ |
384.9 |
|
|
$ |
343.4 |
|
|
12.1 |
% |
|
Operating margin |
|
9.1 |
% |
|
|
6.2 |
% |
|
2.9 |
% |
|
Non-GAAP Results (unaudited) |
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|
|
Q2 |
|
Q2 |
|
Period Change |
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|
|
FY 2023 |
|
FY 2022 |
|
Y-T-Y* |
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|
Revenue |
$ |
1,132.7 |
|
|
$ |
949.2 |
|
|
19.3 |
% |
|
Adj. gross margin |
|
43.7 |
% |
|
|
43.0 |
% |
|
0.7 |
% |
|
Adj. operating expense |
$ |
338.1 |
|
|
$ |
301.1 |
|
|
12.3 |
% |
|
Adj. operating margin |
|
13.8 |
% |
|
|
11.3 |
% |
|
2.5 |
% |
|
Adj. EBITDA |
$ |
180.6 |
|
|
$ |
129.3 |
|
|
39.7 |
% |
|
* Denotes % change, or in the case of margin, absolute change |
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|
Revenue by Segment (unaudited) |
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|
Q2 FY 2023 |
Q2 FY 2022 |
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|
Revenue |
%** |
Revenue |
%** |
||||
|
Networking Platforms |
|||||||
|
Converged Packet Optical |
$ |
784.5 |
69.3 |
$ |
625.3 |
65.8 |
|
|
Routing and Switching |
|
130.4 |
11.5 |
|
109.2 |
11.5 |
|
|
Total Networking Platforms |
|
914.9 |
80.8 |
|
734.5 |
77.3 |
|
|
|
|
|
|
|
|||
|
Platform Software and Services |
|
69.4 |
6.1 |
|
69.1 |
7.3 |
|
|
|
|
|
|
|
|||
|
Blue Planet Automation Software and Services |
|
20.6 |
1.8 |
|
16.9 |
1.8 |
|
|
|
|
|
|
|
|||
|
Global Services |
|
|
|
|
|||
|
Maintenance Support and Training |
|
73.2 |
6.5 |
|
74.0 |
7.8 |
|
|
Installation and Deployment |
|
39.5 |
3.5 |
|
41.4 |
4.4 |
|
|
Consulting and Network Design |
|
15.1 |
1.3 |
|
13.3 |
1.4 |
|
|
Total Global Services |
|
127.8 |
11.3 |
|
128.7 |
13.6 |
|
|
|
|
|
|
|
|||
|
Total |
$ |
1,132.7 |
100.0 |
$ |
949.2 |
100.0 |
|
|
** Denotes % of total revenue |
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Additional Performance Metrics for Fiscal Second Quarter 2023
|
Revenue by Geographic Region (unaudited) |
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|
Q2 FY 2023 |
Q2 FY 2022 |
|||||||
|
|
Revenue |
|
% ** |
|
Revenue |
% ** |
||
|
Americas |
$ |
794.4 |
|
70.1 |
|
$ |
700.8 |
73.8 |
|
Europe, Middle East and Africa |
|
173.4 |
|
15.3 |
|
|
145.1 |
15.3 |
|
Asia Pacific |
|
164.9 |
|
14.6 |
|
|
103.3 |
10.9 |
|
Total |
$ |
1,132.7 |
|
100.0 |
|
$ |
949.2 |
100.0 |
|
** Denotes % of total revenue |
|
|
|
|
|
|
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- One customer represented 10%-plus of revenue for a total of 10.9% of revenue
- Cash and investments totaled $1.34 billion
- Cash flow from operations totaled $229.8 million
- Average days' sales outstanding (DSOs) were 97
- Accounts receivable, net balance was $1.04 billion
- Unbilled contract assets, net balance was $180.0 million
- Inventories totaled $1.10 billion, including:
- Raw materials: $753.4 million
- Work in process: $20.9 million
- Finished goods: $308.0 million
- Deferred cost of sales: $58.1 million
- Reserve for excess and obsolescence: $(42.3) million
- Product inventory turns were 2.0
- Headcount totaled 8,385