Ciena Reports Fiscal First Quarter 2021 Financial Results
Ciena Corporation (NYSE: CIEN) reported unaudited financial results for Q1 2021, revealing a revenue of $757.1 million, down from $832.9 million in Q1 2020, reflecting a 9.1% decline. GAAP net income was $55.3 million ($0.35 per share), compared to $62.3 million ($0.40 per share) in the same quarter last year. Despite the revenue drop, the company achieved a gross margin improvement to 47.3%. Ciena also repurchased 0.3 million shares for $13.2 million during the quarter, signaling confidence in its market position amid challenging conditions.
- Gross margin increased to 47.3%, up from 44.5% in Q1 2020.
- Operating expenses decreased by 3.6% to $282.1 million compared to Q1 2020.
- Adjusted operating margin improved to 14.6%, up from 13.1% in Q1 2020.
- Revenue declined by 9.1% year-over-year from $832.9 million in Q1 2020 to $757.1 million.
- GAAP net income decreased from $62.3 million in Q1 2020 to $55.3 million in Q1 2021.
Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal first quarter ended January 30, 2021.
-
Q1 Revenue:
$757.1 million -
Q1 Net Income per Share:
$0.35 GAAP;$0.52 adjusted (non-GAAP) -
Share Repurchases: Repurchased approximately 0.3 million shares of common stock for an aggregate price of
$13.2 million during the quarter
"We delivered solid revenue and profitability in the first fiscal quarter in the face of continued challenging market conditions and a dynamic industry environment," said Gary Smith, president and CEO of Ciena. "Our strong market position has enabled us to start the year largely as expected, and we are leveraging our innovation leadership and competitive advantage to deliver on our long-term growth opportunities."
For the fiscal first quarter 2021, Ciena reported revenue of
Ciena's GAAP net income for the fiscal first quarter 2021 was
Ciena's adjusted (non-GAAP) net income for the fiscal first quarter 2021 was
Fiscal First Quarter 2021 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 |
||||||||||
|
Q1 |
|
Q1 |
|
|
||||||
|
FY 2021 |
|
FY 2020 |
|
Y-T-Y* |
||||||
Revenue |
$ |
757.1 |
|
$ |
832.9 |
|
(9.1 |
)% |
|||
Gross margin |
|
47.3 |
% |
|
44.5 |
% |
2.8 |
% |
|||
Operating expense |
$ |
282.1 |
|
$ |
292.6 |
|
(3.6 |
)% |
|||
Operating margin |
|
10.0 |
% |
|
9.4 |
% |
0.6 |
% |
|||
|
Non-GAAP Results |
||||||||||
|
Q1 |
|
Q1 |
|
|
||||||
|
FY 2021 |
|
FY 2020 |
|
Y-T-Y* |
||||||
Revenue |
$ |
757.1 |
|
$ |
832.9 |
|
(9.1 |
)% |
|||
Adj. gross margin |
|
48.0 |
% |
|
45.1 |
% |
2.9 |
% |
|||
Adj. operating expense |
$ |
253.0 |
|
$ |
266.4 |
|
(5.0 |
)% |
|||
Adj. operating margin |
|
14.6 |
% |
|
13.1 |
% |
1.5 |
% |
|||
Adj. EBITDA |
$ |
133.8 |
|
$ |
135.3 |
|
(1.1 |
)% |
|||
* Denotes % change, or in the case of margin, absolute change |
|||||||||||
|
|
Revenue by Segment |
||||||||||||
|
|
Q1 FY 2021 |
|
Q1 FY 2020 |
||||||||||
|
|
Revenue |
|
%** |
|
Revenue |
|
%** |
||||||
Networking Platforms |
|
|
|
|
|
|
|
|
||||||
Converged Packet Optical |
|
$ |
512.3 |
|
|
67.7 |
|
|
$ |
591.5 |
|
|
71.0 |
|
Routing and Switching (1) |
|
64.3 |
|
|
8.5 |
|
|
67.5 |
|
|
8.1 |
|
||
Total Networking Platforms |
|
576.6 |
|
|
76.2 |
|
|
659.0 |
|
|
79.1 |
|
||
|
|
|
|
|
|
|
|
|
||||||
Platform Software and Services |
|
49.9 |
|
|
6.6 |
|
|
51.9 |
|
|
6.2 |
|
||
|
|
|
|
|
|
|
|
|
||||||
Blue Planet Automation Software and Services |
|
16.9 |
|
|
2.2 |
|
|
15.5 |
|
|
1.9 |
|
||
|
|
|
|
|
|
|
|
|
||||||
Global Services |
|
|
|
|
|
|
|
|
||||||
Maintenance Support and Training |
|
67.6 |
|
|
8.9 |
|
|
61.8 |
|
|
7.4 |
|
||
Installation and Deployment |
|
39.6 |
|
|
5.2 |
|
|
34.9 |
|
|
4.2 |
|
||
Consulting and Network Design |
|
6.5 |
|
|
0.9 |
|
|
9.8 |
|
|
1.2 |
|
||
Total Global Services |
|
113.7 |
|
|
15.0 |
|
|
106.5 |
|
|
12.8 |
|
||
|
|
|
|
|
|
|
|
|
||||||
Total |
|
$ |
757.1 |
|
|
100.0 |
|
|
$ |
832.9 |
|
|
100.0 |
|
** |
Denotes % of total revenue |
(1)
|
Ciena renamed its former “Packet Networking” product line as “Routing and Switching” effective as of the beginning of fiscal 2021. This change, affecting only the presentation of such information, was made on a prospective basis and does not impact comparability of previous financial results or the composition of this product category. |
Additional Performance Metrics for Fiscal First Quarter 2021
|
|
Revenue by Geographic Region |
||||||||||||
|
|
Q1 FY 2021 |
|
Q1 FY 2020 |
||||||||||
|
|
Revenue |
|
% ** |
|
Revenue |
|
% ** |
||||||
Americas |
|
$ |
496.6 |
|
|
65.6 |
|
|
$ |
574.0 |
|
|
68.9 |
|
Europe, Middle East and Africa |
|
155.4 |
|
|
20.5 |
|
|
130.0 |
|
|
15.6 |
|
||
Asia Pacific |
|
105.1 |
|
|
13.9 |
|
|
128.9 |
|
|
15.5 |
|
||
Total |
|
$ |
757.1 |
|
|
100.0 |
|
|
$ |
832.9 |
|
|
100.0 |
|
** Denotes % of total revenue |
||||||||||||||
-
No customer represented more than
10% of revenue for the fiscal quarter -
Cash and investments totaled
$1.3 billion -
Cash flow used in operations totaled
$7.3 million - Average days' sales outstanding (DSOs) were 93
-
Accounts receivable, net balance was
$700.0 million -
Unbilled contract asset, net balance was
$85.5 million -
Inventories totaled
$389.7 million , including:-
Raw materials:
$123.4 million -
Work in process:
$11.4 million -
Finished goods:
$257.0 million -
Deferred cost of sales:
$38.9 million -
Reserve for excess and obsolescence:
$(41.0) million
-
Raw materials:
- Product inventory turns were 3.2
- Headcount totaled 7,042
Supplemental Materials and Live Web Broadcast of Unaudited Fiscal First Quarter 2021 Results
Today, Thursday, March 4, 2021, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website an accompanying investor presentation for its unaudited fiscal first quarter 2021 results.
Ciena's management will also host a discussion today with investors and financial analysts that will include the Company's outlook. The live audio web broadcast beginning at 8:30 a.m. Eastern will be accessible via www.ciena.com. An archived replay of the live broadcast will be available shortly following its conclusion on the Investor Relations page of Ciena's website.
Notes to Investors
Forward-Looking Statements. You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission ("SEC") filings, recent news, financial results, supplemental financial information, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Forward-looking statements in this release include: "We delivered solid revenue and profitability in the first fiscal quarter in the face of continued challenging market conditions and a dynamic industry environment," and "Our strong market position has enabled us to start the year largely as expected, and we are leveraging our innovation leadership and competitive advantage to deliver on our long-term growth opportunities."
Ciena's actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena's business, including: the effect of broader economic and market conditions on our customers and their business; our ability to execute successfully our business and growth strategies; the duration and severity of the COVID-19 pandemic and its impact on macroeconomic conditions, economic activity, demand for our technology solutions, short- and long-term changes in customer or end user needs, continuity of supply chain, our business operations, liquidity, and financial results; changes in network spending or network strategy by customers; seasonality and the timing and size of customer orders, including our ability to recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; supply chain disruptions and the level of success relating to efforts to optimize Ciena's operations; changes in foreign currency exchange rates affecting revenue and operating expense; factors beyond our control such as natural disasters, acts of war or terrorism, and public health emergencies, including the COVID-19 pandemic; the impact of the Tax Cuts and Jobs Act; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; changes in estimates of prospective income tax rates and any adjustments to Ciena's provisional estimates whether related to further guidance, analysis or otherwise; and the other risk factors disclosed in its Annual Report on Form 10-K filed with the SEC on December 18, 2020 and included in its Quarterly Report on Form 10-Q for the first quarter of fiscal 2021 to be filed with the SEC. Ciena assumes no obligation to update any forward-looking information included in this press release.
Non-GAAP Presentation of Quarterly and Annual Results. This release includes non-GAAP measures of Ciena's gross profit, operating expense, income from operations, earnings before interest, tax, depreciation and amortization (EBITDA), Adjusted EBITDA, and measures of net income and net income per share. In evaluating the operating performance of Ciena's business, management excludes certain charges and credits that are required by GAAP. These items share one or more of the following characteristics: they are unusual and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of Ciena's control. Management believes that the non-GAAP measures below provide management and investors useful information and meaningful insight to the operating performance of the business. The presentation of these non-GAAP financial measures should be considered in addition to Ciena's GAAP results and these measures are not intended to be a substitute for the financial information prepared and presented in accordance with GAAP. Ciena's non-GAAP measures and the related adjustments may differ from non-GAAP measures used by other companies and should only be used to evaluate Ciena's results of operations in conjunction with our corresponding GAAP results. To the extent not previously disclosed in a prior Ciena financial results press release, Appendices A and B to this press release set forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.
About Ciena. Ciena (NYSE: CIEN) is a networking systems, services and software company. We provide solutions that help our customers create the Adaptive Network™ in response to the constantly changing demands of their users. By delivering best-in-class networking technology through high-touch consultative relationships, we build the world’s most agile networks with automation, openness and scale. For updates on Ciena, follow us on Twitter @Ciena, LinkedIn, the Ciena Insights blog, or visit www.ciena.com.
CIENA CORPORATION |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(in thousands, except per share data) |
||||||||
(unaudited) |
||||||||
|
Quarter Ended |
|||||||
|
January 30, |
|
February 1, |
|||||
|
2021 |
|
2020 |
|||||
Revenue: |
|
|
|
|||||
Products |
$ |
597,220 |
|
|
$ |
687,215 |
|
|
Services |
159,910 |
|
|
145,697 |
|
|||
Total revenue |
757,130 |
|
|
832,912 |
|
|||
Cost of goods sold: |
|
|
|
|||||
Products |
315,098 |
|
|
389,013 |
|
|||
Services |
84,141 |
|
|
{
"@context": "https://schema.org",
"@type": "FAQPage",
"name": "Ciena Reports Fiscal First Quarter 2021 Financial Results FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What were Ciena's revenue results for Q1 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Ciena reported Q1 2021 revenue of $757.1 million, down from $832.9 million in Q1 2020."
}
},
{
"@type": "Question",
"name": "How did Ciena's net income change in Q1 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Ciena's GAAP net income for Q1 2021 was $55.3 million, compared to $62.3 million in Q1 2020."
}
},
{
"@type": "Question",
"name": "What is Ciena's adjusted earnings per share for Q1 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Ciena's adjusted (non-GAAP) earnings per share for Q1 2021 was $0.52, the same as in Q1 2020."
}
},
{
"@type": "Question",
"name": "Did Ciena repurchase shares in Q1 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Yes, Ciena repurchased approximately 0.3 million shares for an aggregate price of $13.2 million during the quarter."
}
}
]
}
FAQ
What were Ciena's revenue results for Q1 2021?
Ciena reported Q1 2021 revenue of $757.1 million, down from $832.9 million in Q1 2020.
How did Ciena's net income change in Q1 2021?
Ciena's GAAP net income for Q1 2021 was $55.3 million, compared to $62.3 million in Q1 2020.
What is Ciena's adjusted earnings per share for Q1 2021?
Ciena's adjusted (non-GAAP) earnings per share for Q1 2021 was $0.52, the same as in Q1 2020.
Did Ciena repurchase shares in Q1 2021?
Yes, Ciena repurchased approximately 0.3 million shares for an aggregate price of $13.2 million during the quarter.
Ciena Corporation
NYSE:CIENCIEN RankingsCIEN Latest NewsCIEN Stock Data
12.24B
141.34M
0.92%
101.67%
4.32%
Communication Equipment
Telephone & Telegraph Apparatus
United States of America
HANOVER
| ||||