HANOVER, Md.--(BUSINESS WIRE)--Aug. 31, 2023-- Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal third quarter ended July 29, 2023.
- Q3 Revenue: $1.07 billion
- Q3 Net Income per Share: $0.20 GAAP; $0.59 adjusted (non-GAAP)
- Share Repurchases: Repurchased approximately 1.4 million shares of common stock for an aggregate price of $61.2 million during the quarter.
"We delivered excellent results for the fiscal third quarter with strength across all regions," said Gary Smith, president and CEO of Ciena. "We are encouraged by increased customer activity that, when combined with our elevated backlog, market leadership and expanding addressable market, we believe will drive growth and market share gains going forward."
For fiscal third quarter 2023, Ciena reported revenue of $1.07 billion as compared to $868.0 million for the fiscal third quarter 2022.
Ciena's GAAP net income for the fiscal third quarter 2023 was $29.7 million, or $0.20 per diluted common share, which compares to a GAAP net income of $10.5 million, or $0.07 per diluted common share, for the fiscal third quarter 2022.
Ciena's adjusted (non-GAAP) net income for the fiscal third quarter 2023 was $89.1 million, or $0.59 per diluted common share, which compares to an adjusted (non-GAAP) net income of $49.0 million, or $0.33 per diluted common share, for the fiscal third quarter 2022.
Fiscal Third 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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Q3 |
|
Q3 |
|
Period Change |
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|
|
|
FY 2023 |
|
FY 2022 |
|
Y-T-Y* |
|||||
|
Revenue |
|
$ |
1,067.9 |
|
|
$ |
868.0 |
|
|
23.0 |
% |
|
Gross margin |
|
|
42.0 |
% |
|
|
39.3 |
% |
|
2.7 |
% |
|
Operating expense |
|
$ |
370.7 |
|
|
$ |
313.7 |
|
|
18.2 |
% |
|
Operating margin |
|
|
7.3 |
% |
|
|
3.1 |
% |
|
4.2 |
% |
|
|
|
Non-GAAP Results (unaudited) |
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|
|
|
Q3 |
|
Q3 |
|
Period Change |
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|
|
|
FY 2023 |
|
FY 2022 |
|
Y-T-Y* |
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|
Revenue |
|
$ |
1,067.9 |
|
|
$ |
868.0 |
|
|
23.0 |
% |
|
Adj. gross margin |
|
|
42.7 |
% |
|
|
40.0 |
% |
|
2.7 |
% |
|
Adj. operating expense |
|
$ |
327.9 |
|
|
$ |
273.1 |
|
|
20.1 |
% |
|
Adj. operating margin |
|
|
12.0 |
% |
|
|
8.5 |
% |
|
3.5 |
% |
|
Adj. EBITDA |
|
$ |
151.3 |
|
|
$ |
96.0 |
|
|
57.6 |
% |
|
* Denotes % change, or in the case of margin, absolute change |
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Revenue by Segment (unaudited) |
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|
Q3 FY 2023 |
|
Q3 FY 2022 |
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|
|
Revenue |
|
%** |
|
Revenue |
|
%** |
||
|
Networking Platforms |
|
|
|
|
|
|
|
|
||
|
Converged Packet Optical |
|
$ |
719.0 |
|
67.3 |
|
$ |
563.9 |
|
65.0 |
|
Routing and Switching |
|
|
127.6 |
|
11.9 |
|
|
100.7 |
|
11.6 |
|
Total Networking Platforms |
|
|
846.6 |
|
79.2 |
|
|
664.6 |
|
76.6 |
|
|
|
|
|
|
|
|
|
|
||
|
Platform Software and Services |
|
|
78.9 |
|
7.4 |
|
|
63.5 |
|
7.3 |
|
|
|
|
|
|
|
|
|
|
||
|
Blue Planet Automation Software and Services |
|
|
13.1 |
|
1.3 |
|
|
17.3 |
|
2.0 |
|
|
|
|
|
|
|
|
|
|
||
|
Global Services |
|
|
|
|
|
|
|
|
||
|
Maintenance Support and Training |
|
|
72.9 |
|
6.8 |
|
|
72.8 |
|
8.4 |
|
Installation and Deployment |
|
|
46.8 |
|
4.4 |
|
|
38.7 |
|
4.4 |
|
Consulting and Network Design |
|
|
9.6 |
|
0.9 |
|
|
11.1 |
|
1.3 |
|
Total Global Services |
|
|
129.3 |
|
12.1 |
|
|
122.6 |
|
14.1 |
|
|
|
|
|
|
|
|
|
|
||
|
Total |
|
$ |
1,067.9 |
|
100.0 |
|
$ |
868.0 |
|
100.0 |
|
** Denotes % of total revenue |
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Additional Performance Metrics for Fiscal Third Quarter 2023
|
|
|
Revenue by Geographic Region (unaudited) |
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|
|
|
Q3 FY 2023 |
|
Q3 FY 2022 |
||||||
|
|
|
Revenue |
|
% ** |
|
Revenue |
|
% ** |
||
|
Americas |
|
$ |
749.5 |
|
70.2 |
|
$ |
617.4 |
|
71.1 |
|
Europe, Middle East and Africa |
|
|
152.8 |
|
14.3 |
|
|
124.2 |
|
14.3 |
|
Asia Pacific |
|
|
165.6 |
|
15.5 |
|
|
126.4 |
|
14.6 |
|
Total |
|
$ |
1,067.9 |
|
100.0 |
|
$ |
868.0 |
|
100.0 |
|
** Denotes % of total revenue |
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- One customer represented 10%-plus of revenue for a total of 11.7% of revenue
- Cash and investments totaled $1.28 billion
- Cash flow from operations totaled $8.7 million
- Average days' sales outstanding (DSOs) were 96
- Accounts receivable, net balance was $997.4 million
- Unbilled contract assets, net balance was $142.3 million
- Inventories totaled $1.19 billion, including:
- Raw materials: $772.0 million
- Work in process: $51.8 million
- Finished goods: $333.5 million
- Deferred cost of sales: $77.5 million
- Reserve for excess and obsolescence: $(42.3) million
- Product inventory turns were 1.7
- Headcount totaled 8,623
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