HANOVER, Md. -- Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal third quarter ended July 27, 2024.
- Q3 Revenue: $942.3 million
- Q3 Net Income per Share: $0.10 GAAP; $0.35 adjusted (non-GAAP)
- Share Repurchases: Repurchased approximately 0.6 million shares of common stock for an aggregate price of $29.0 million during the quarter
"We delivered strong results for the fiscal third quarter that reflect growing momentum with cloud providers and continued gradual recovery with service providers," said Gary Smith, president and CEO, Ciena. "With leading innovation that is well-aligned with our customers' focus on building cloud and AI-capable infrastructures, we are well-positioned to continue to gain share and deliver profitable growth.”
For the fiscal third quarter 2024, Ciena reported revenue of $942.3 million as compared to $1.07 billion for the fiscal third quarter 2023.
Ciena's GAAP net income for the fiscal third quarter 2024 was $14.2 million, or $0.10 per diluted common share, which compares to a GAAP net income of $29.7 million, or $0.20 per diluted common share, for the fiscal third quarter 2023.
Ciena's adjusted (non-GAAP) net income for the fiscal third quarter 2024 was $50.8 million, or $0.35 per diluted common share, which compares to an adjusted (non-GAAP) net income of $89.1 million, or $0.59 per diluted common share, for the fiscal third quarter 2023.
Fiscal Third 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) |
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|
|
|
Q3 |
|
Q3 |
|
Period Change |
|||||
|
|
|
FY 2024 |
|
FY 2023 |
|
Y-T-Y* |
|||||
|
Revenue |
|
$ |
942.3 |
|
|
$ |
1,067.9 |
|
|
(11.8 |
)% |
|
Gross margin |
|
|
42.9 |
% |
|
|
42.0 |
% |
|
0.9 |
% |
|
Operating expense |
|
$ |
377.2 |
|
|
$ |
370.7 |
|
|
1.7 |
% |
|
Operating margin |
|
|
2.9 |
% |
|
|
7.3 |
% |
|
(4.4 |
)% |
|
|
|
Non-GAAP Results (unaudited) |
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|
|
|
Q3 |
|
Q3 |
|
Period Change |
|||||
|
|
|
FY 2024 |
|
FY 2023 |
|
Y-T-Y* |
|||||
|
Revenue |
|
$ |
942.3 |
|
|
$ |
1,067.9 |
|
|
(11.8 |
)% |
|
Adj. gross margin |
|
|
43.7 |
% |
|
|
42.7 |
% |
|
1.0 |
% |
|
Adj. operating expense |
|
$ |
336.0 |
|
|
$ |
327.9 |
|
|
2.5 |
% |
|
Adj. operating margin |
|
|
8.0 |
% |
|
|
12.0 |
% |
|
(4.0 |
)% |
|
Adj. EBITDA |
|
$ |
98.5 |
|
|
$ |
151.3 |
|
|
(34.9 |
)% |
* Denotes % change, or in the case of margin, absolute change
|
|
|
Revenue by Segment (unaudited) |
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|
|
|
Q3 FY 2024 |
|
Q3 FY 2023 |
||||||
|
|
|
Revenue |
|
%** |
|
Revenue |
|
%** |
||
|
Networking Platforms |
|
|
|
|
|
|
|
|
||
|
Optical Networking |
|
$ |
606.8 |
|
64.4 |
|
$ |
719.0 |
|
67.3 |
|
Routing and Switching |
|
|
92.7 |
|
9.8 |
|
|
127.6 |
|
11.9 |
|
Total Networking Platforms |
|
|
699.5 |
|
74.2 |
|
|
846.6 |
|
79.2 |
|
|
|
|
|
|
|
|
|
|
||
|
Platform Software and Services |
|
|
83.2 |
|
8.9 |
|
|
78.9 |
|
7.4 |
|
|
|
|
|
|
|
|
|
|
||
|
Blue Planet Automation Software and Services |
|
|
25.8 |
|
2.7 |
|
|
13.1 |
|
1.3 |
|
|
|
|
|
|
|
|
|
|
||
|
Global Services |
|
|
|
|
|
|
|
|
||
|
Maintenance Support and Training |
|
|
74.4 |
|
7.9 |
|
|
72.9 |
|
6.8 |
|
Installation and Deployment |
|
|
46.5 |
|
4.9 |
|
|
46.8 |
|
4.4 |
|
Consulting and Network Design |
|
|
12.9 |
|
1.4 |
|
|
9.6 |
|
0.9 |
|
Total Global Services |
|
|
133.8 |
|
14.2 |
|
|
129.3 |
|
12.1 |
|
|
|
|
|
|
|
|
|
|
||
|
Total |
|
$ |
942.3 |
|
100.0 |
|
$ |
1,067.9 |
|
100.0 |
** Denotes % of total revenue
Additional Performance Metrics for Fiscal Third Quarter 2024
|
|
|
Revenue by Geographic Region (unaudited) |
||||||||
|
|
|
Q3 FY 2024 |
|
Q3 FY 2023 |
||||||
|
|
|
Revenue |
|
% ** |
|
Revenue |
|
% ** |
||
|
Americas |
|
$ |
718.6 |
|
76.3 |
|
$ |
749.5 |
|
70.2 |
|
Europe, Middle East and Africa |
|
|
135.0 |
|
14.3 |
|
|
152.8 |
|
14.3 |
|
Asia Pacific |
|
|
88.7 |
|
9.4 |
|
|
165.6 |
|
15.5 |
|
Total |
|
$ |
942.3 |
|
100.0 |
|
$ |
1,067.9 |
|
100.0 |
** Denotes % of total revenue
- Two 10%-plus customers represented a total 26.6% of revenue
- Cash and investments totaled $1.2 billion
- Cash flow used in operations totaled $159.4 million
- Average days' sales outstanding (DSOs) were 100
- Accounts receivable, net balance was $899.9 million
- Unbilled contract asset, net balance was $142.8 million
- Inventories totaled $937.4 million, including:
- Raw materials: $612.7 million
- Work in process: $44.4 million
- Finished goods: $314.0 million
- Deferred cost of sales: $36.0 million
- Reserve for excess and obsolescence: $(69.7) million
- Product inventory turns were 1.8
- Headcount totaled 8,781
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