Ciena Reports Fiscal Third Quarter 2024 Financial Results
Ciena (NYSE: CIEN), a networking systems, services, and software company, reported Q3 fiscal 2024 results with revenue of $942.3 million, down 11.8% YoY from $1.07 billion in Q3 2023.
GAAP net income was $14.2 million or $0.10 per share, compared to $29.7 million or $0.20 per share last year. Adjusted net income was $50.8 million or $0.35 per share, down from $89.1 million or $0.59 per share in Q3 2023.
The company repurchased 0.6 million shares for $29 million during the quarter. GAAP gross margin increased to 42.9% from 42%, and non-GAAP gross margin improved to 43.7% from 42.7%. Operating margin declined to 2.9% (GAAP) and 8% (non-GAAP) from 7.3% and 12% respectively. Adjusted EBITDA also dropped by 34.9% YoY to $98.5 million.
By segment, Networking Platforms revenue decreased to $699.5 million from $846.6 million, while Platform Software and Services saw a slight rise to $83.2 million. Geographically, the Americas led with $718.6 million in revenue.
Ciena (NYSE: CIEN), una società di sistemi, servizi e software di rete, ha riportato i risultati per il terzo trimestre fiscale 2024 con un fatturato di 942,3 milioni di dollari, in calo dell'11,8% rispetto all'anno precedente, quando era di 1,07 miliardi nel Q3 2023.
Il reddito netto GAAP è stato di 14,2 milioni di dollari, ovvero 0,10 dollari per azione, rispetto ai 29,7 milioni di dollari, ovvero 0,20 dollari per azione, dell'anno scorso. Il reddito netto rettificato è stato di 50,8 milioni di dollari, ovvero 0,35 dollari per azione, in calo rispetto a 89,1 milioni di dollari, ovvero 0,59 dollari per azione nel Q3 2023.
La società ha riacquistato 0,6 milioni di azioni per 29 milioni di dollari durante il trimestre. Il margine lordo GAAP è aumentato al 42,9% dal 42%, mentre il margine lordo non GAAP è migliorato al 43,7% dal 42,7%. Il margine operativo è diminuito al 2,9% (GAAP) e all'8% (non GAAP) rispetto al 7,3% e al 12% rispettivamente. Il EBITDA rettificato è anche sceso del 34,9% rispetto all'anno precedente, arrivando a 98,5 milioni di dollari.
Per segmento, il fatturato delle Piattaforme di Networking è diminuito a 699,5 milioni di dollari dai 846,6 milioni, mentre Il Software e i Servizi della Piattaforma hanno registrato un leggero aumento a 83,2 milioni di dollari. Geograficamente, le Americhe hanno guidato con 718,6 milioni di dollari di fatturato.
Ciena (NYSE: CIEN), una compañía de sistemas de red, servicios y software, reportó resultados para el tercer trimestre fiscal 2024 con ingresos de 942,3 millones de dólares, una disminución del 11,8% interanual desde 1,07 mil millones en el Q3 2023.
El ingreso neto GAAP fue de 14,2 millones de dólares o 0,10 dólares por acción, en comparación con 29,7 millones de dólares o 0,20 dólares por acción el año pasado. El ingreso neto ajustado fue de 50,8 millones de dólares o 0,35 dólares por acción, bajando de 89,1 millones de dólares o 0,59 dólares por acción en el Q3 2023.
La compañía recompró 0,6 millones de acciones por 29 millones de dólares durante el trimestre. El margen bruto GAAP aumentó al 42,9% desde el 42%, y el margen bruto no GAAP mejoró al 43,7% desde el 42,7%. El margen operativo disminuyó al 2,9% (GAAP) y al 8% (no GAAP) desde el 7,3% y el 12% respectivamente. El EBITDA ajustado también cayó un 34,9% interanual a 98,5 millones de dólares.
Por segmento, los ingresos de Plataformas de Networking disminuyeron a 699,5 millones de dólares desde 846,6 millones, mientras que el Software y Servicios de la Plataforma vieron un ligero aumento a 83,2 millones de dólares. Geográficamente, las Américas lideraron con 718,6 millones de dólares en ingresos.
시에나 (NYSE: CIEN), 네트워킹 시스템, 서비스 및 소프트웨어 회사가 2024 회계연도 3분기 실적을 보고하면서 수익이 9억 4천 2백 30만 달러로, 지난해 10억 7천만 달러 대비 11.8% 감소했다고 발표했습니다.
GAAP 순이익은 1천 4백 20만 달러, 즉 주당 0.10 달러였으며, 작년의 2천 9백 70만 달러, 즉 주당 0.20 달러와 비교됩니다. 조정된 순이익은 5천 80만 달러, 즉 주당 0.35 달러로, 2023년 3분기의 8천 91만 달러, 즉 주당 0.59 달러에서 감소했습니다.
회사는 분기 동안 60만 주를 2천 9백만 달러에 재매입했습니다. GAAP 총 마진은 42%에서 42.9%로 증가했으며, 비GAAP 총 마진은 42.7%에서 43.7%로 개선되었습니다. 영업 마진은 각각 7.3%와 12%에서 2.9% (GAAP) 및 8% (비GAAP)로 감소했습니다. 조정된 EBITDA는 전년 대비 34.9% 감소하여 9천 8백 50만 달러에 달했습니다.
부문별로, 네트워킹 플랫폼의 수익은 6억 9천 95백만 달러로 8억 4천 66백만 달러에서 감소했으며, 플랫폼 소프트웨어 및 서비스는 8천 32백만 달러로 소폭 증가했습니다. 지역별로는 미주가 7억 1천 86백만 달러의 수익을 기록했습니다.
Ciena (NYSE: CIEN), une entreprise de systèmes de réseau, de services et de logiciels, a annoncé les résultats pour le troisième trimestre de l'exercice 2024 avec un chiffre d'affaires de 942,3 millions de dollars, en baisse de 11,8 % par rapport à l'année précédente, où il était de 1,07 milliard au T3 2023.
Le revenu net GAAP était de 14,2 millions de dollars, soit 0,10 dollar par action, comparé à 29,7 millions de dollars, soit 0,20 dollar par action l'année dernière. Le revenu net ajusté était de 50,8 millions de dollars, soit 0,35 dollar par action, en baisse par rapport à 89,1 millions de dollars, soit 0,59 dollar par action au T3 2023.
L'entreprise a racheté 0,6 million d'actions pour 29 millions de dollars au cours du trimestre. La marge brute GAAP a augmenté à 42,9 % contre 42 %, et la marge brute non GAAP s'est améliorée à 43,7 % contre 42,7 %. La marge opérationnelle a diminué à 2,9 % (GAAP) et 8 % (non GAAP) contre 7,3 % et 12 % respectivement. Le EBITDA ajusté a également chuté de 34,9 % par rapport à l'année précédente, atteignant 98,5 millions de dollars.
Par segment, le chiffre d'affaires des Plateformes de Réseautage a diminué à 699,5 millions de dollars contre 846,6 millions, tandis que les Logiciels et Services de la Plateforme ont connu une légère hausse à 83,2 millions de dollars. D'un point de vue géographique, les Amériques ont dominé avec un chiffre d'affaires de 718,6 millions de dollars.
Ciena (NYSE: CIEN), ein Unternehmen für Netzwerktechnologie, Dienstleistungen und Software, gab die Ergebnisse für das 3. Quartal des Geschäftsjahres 2024 bekannt, mit einem Umsatz von 942,3 Millionen Dollar, was einem Rückgang von 11,8% im Vergleich zum Vorjahr von 1,07 Milliarden Dollar im Q3 2023 entspricht.
Das GAAP-Nettoeinkommen betrug 14,2 Millionen Dollar oder 0,10 Dollar je Aktie, verglichen mit 29,7 Millionen Dollar oder 0,20 Dollar je Aktie im Vorjahr. Das bereinigte Nettoeinkommen betrug 50,8 Millionen Dollar oder 0,35 Dollar je Aktie, ein Rückgang gegenüber 89,1 Millionen Dollar oder 0,59 Dollar je Aktie im Q3 2023.
Das Unternehmen hat im Quartal 0,6 Millionen Aktien für 29 Millionen Dollar zurückgekauft. Die GAAP-Bruttomarge stieg auf 42,9% von 42%, und die nicht-GAAP-Bruttomarge verbesserte sich auf 43,7% von 42,7%. Die operative Marge sank auf 2,9% (GAAP) und 8% (nicht GAAP) von 7,3% und 12% jeweils. Das adj. EBITDA fiel um 34,9% im Jahresvergleich auf 98,5 Millionen Dollar.
Nach Segmenten sank der Umsatz der Netzwerkplattformen auf 699,5 Millionen Dollar von 846,6 Millionen Dollar, während Plattformsoftware und -dienste einen leichten Anstieg auf 83,2 Millionen Dollar verzeichneten. Geografisch führten die Amerikas mit 718,6 Millionen Dollar Umsatz.
- GAAP gross margin increased to 42.9%, up by 0.9% YoY.
- Non-GAAP gross margin improved to 43.7%, up by 1% YoY.
- Americas revenue led with $718.6 million.
- Revenue decreased 11.8% YoY to $942.3 million.
- GAAP net income declined to $14.2 million from $29.7 million YoY.
- Adjusted net income declined to $50.8 million from $89.1 million YoY.
- Operating margin decreased to 2.9% (GAAP) and 8% (non-GAAP) from 7.3% and 12% respectively.
- Adjusted EBITDA dropped by 34.9% YoY to $98.5 million.
Insights
Ciena's Q3 FY2024 results show mixed signals. Revenue declined
- Gross margin improved slightly, increasing by
0.9% to42.9% on a GAAP basis. - The company maintained a strong cash position of
$1.2 billion . - Share repurchases of
$29 million demonstrate confidence in the company's future.
The decline in net income is concerning, with GAAP EPS dropping from
Ciena's Q3 results reflect the ongoing shifts in the networking industry. The
- Growing momentum with cloud providers indicates Ciena is aligning with key industry trends.
- Increased focus on AI-capable infrastructures positions the company well for future growth.
- The Blue Planet Automation Software segment saw impressive growth, nearly doubling year-over-year.
The decline in Optical Networking revenue (
Ciena's Q3 results reveal interesting market dynamics. The company's performance varied significantly across geographic regions:
- Americas: Revenue declined slightly (
4.1% ) but now represents76.3% of total revenue, up from70.2% last year. - EMEA: Relatively stable with a
11.6% decline. - Asia Pacific: Experienced a sharp
46.4% drop, significantly impacting overall results.
The concentration of revenue in the Americas could be both a strength and a risk. While it provides stability, it also exposes Ciena to regional economic fluctuations. The dramatic decline in Asia Pacific is concerning and warrants investigation into potential market share losses or broader regional challenges. The increase in DSOs to 100 days suggests potential issues with cash conversion cycle efficiency, which could impact liquidity if not addressed promptly.
-
Q3 Revenue:
$942.3 million -
Q3 Net Income per Share:
$0.10 $0.35 -
Share Repurchases: Repurchased approximately 0.6 million shares of common stock for an aggregate price of
$29.0 million
"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
Ciena's GAAP net income for the fiscal third quarter 2024 was
Ciena's adjusted (non-GAAP) net income for the fiscal third quarter 2024 was
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) |
|||||||||
|
|
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) |
|||||||||
|
|
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) |
||||||||
|
|
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 |
|
% ** |
||
|
|
$ |
718.6 |
|
76.3 |
|
$ |
749.5 |
|
70.2 |
|
|
|
135.0 |
|
14.3 |
|
|
152.8 |
|
14.3 |
|
|
|
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 total26.6% 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 -
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
-
Raw materials:
- Product inventory turns were 1.8
- Headcount totaled 8,781
Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Third Quarter 2024 Results
Today, Wednesday, September 4, 2024, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website certain related supporting materials for its unaudited fiscal third quarter 2024 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 strong results for the fiscal third quarter that reflect growing momentum with cloud providers and continued gradual recovery with service providers. 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.”
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, their spending and their businesses and markets; our ability to execute our business and growth strategies; the impact of macroeconomic conditions and global supply chain constraints or disruptions including increased supply costs and lead times; the impact of the introduction of new technologies by us or our competitors; seasonality and the timing and size of customer orders, their delivery dates and 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; changes in foreign currency exchange rates; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical tensions or events, including but not limited to the ongoing conflicts between
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 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.
CIENA CORPORATION |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Quarter Ended |
|
Nine Months Ended |
||||||||||||
|
July 27, |
|
July 29, |
|
July 27, |
|
July 29, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Products |
$ |
729,503 |
|
|
$ |
865,197 |
|
|
$ |
2,266,596 |
|
|
$ |
2,678,242 |
|
Services |
|
212,805 |
|
|
|
202,689 |
|
|
|
624,247 |
|
|
|
578,820 |
|
Total revenue |
|
942,308 |
|
|
|
1,067,886 |
|
|
|
2,890,843 |
|
|
|
3,257,062 |
|
Cost of goods sold: |
|
|
|
|
|
|
|
||||||||
Products |
|
433,533 |
|
|
|
516,900 |
|
|
|
1,315,737 |
|
|
|
1,559,120 |
|
Services |
|
104,830 |
|
|
|
102,045 |
|
|
|
315,538 |
|
|
|
305,372 |
|
Total cost of goods sold |
|
538,363 |
|
|
|
618,945 |
|
|
|
1,631,275 |
|
|
|
1,864,492 |
|
Gross profit |
|
403,945 |
|
|
|
448,941 |
|
|
|
1,259,568 |
|
|
|
1,392,570 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
188,888 |
|
|
|
189,392 |
|
|
|
571,537 |
|
|
|
561,115 |
|
Selling and marketing |
|
121,520 |
|
|
|
118,266 |
|
|
|
373,749 |
|
|
|
367,156 |
|
General and administrative |
|
58,248 |
|
|
|
49,349 |
|
|
|
162,504 |
|
|
|
151,184 |
|
Significant asset impairments and restructuring costs |
|
1,361 |
|
|
|
4,174 |
|
|
|
21,987 |
|
|
|
16,625 |
|
Amortization of intangible assets |
|
7,185 |
|
|
|
9,487 |
|
|
|
22,384 |
|
|
|
26,773 |
|
Acquisition and integration costs |
|
— |
|
|
|
59 |
|
|
|
— |
|
|
|
3,474 |
|
Total operating expenses |
|
377,202 |
|
|
|
370,727 |
|
|
|
1,152,161 |
|
|
|
1,126,327 |
|
Income from operations |
|
26,743 |
|
|
|
78,214 |
|
|
|
107,407 |
|
|
|
266,243 |
|
Interest and other income, net |
|
14,013 |
|
|
|
10,187 |
|
|
|
36,460 |
|
|
|
50,711 |
|
Interest expense |
|
(24,401 |
) |
|
|
(24,060 |
) |
|
|
(72,038 |
) |
|
|
(63,819 |
) |
Income before income taxes |
|
16,355 |
|
|
|
64,341 |
|
|
|
71,829 |
|
|
|
253,135 |
|
Provision for income taxes |
|
2,125 |
|
|
|
34,608 |
|
|
|
24,901 |
|
|
|
89,507 |
|
Net income |
$ |
14,230 |
|
|
$ |
29,733 |
|
|
$ |
46,928 |
|
|
$ |
163,628 |
|
|
|
|
|
|
|
|
|
||||||||
Net Income per Common Share |
|
|
|
|
|
|
|
||||||||
Basic net income per common share |
$ |
0.10 |
|
|
$ |
0.20 |
|
|
$ |
0.32 |
|
|
$ |
1.09 |
|
Diluted net income per potential common share |
$ |
0.10 |
|
|
$ |
0.20 |
|
|
$ |
0.32 |
|
|
$ |
1.09 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average basic common shares outstanding |
|
144,394 |
|
|
|
149,690 |
|
|
|
144,876 |
|
|
|
149,472 |
|
Weighted average dilutive potential common shares outstanding 1 |
|
145,361 |
|
|
|
149,977 |
|
|
|
145,795 |
|
|
|
149,867 |
|
1 Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 1.0 million and 0.9 million for the third quarter and first nine months of fiscal 2024, respectively, and (ii) 0.3 million and 0.4 million for the third quarter and first nine months of fiscal 2023, respectively.
CIENA CORPORATION |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(in thousands, except share data) |
|||||||
(unaudited) |
|||||||
|
July 27,
|
|
October 28,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
883,365 |
|
|
$ |
1,010,618 |
|
Short-term investments |
|
217,810 |
|
|
|
104,753 |
|
Accounts receivable, net |
|
899,877 |
|
|
|
1,003,876 |
|
Inventories, net |
|
937,399 |
|
|
|
1,050,838 |
|
Prepaid expenses and other |
|
600,008 |
|
|
|
405,694 |
|
Total current assets |
|
3,538,459 |
|
|
|
3,575,779 |
|
Long-term investments |
|
111,833 |
|
|
|
134,278 |
|
Equipment, building, furniture and fixtures, net |
|
299,161 |
|
|
|
280,147 |
|
Operating lease right-of-use assets |
|
28,717 |
|
|
|
35,140 |
|
Goodwill |
|
444,791 |
|
|
|
444,765 |
|
Other intangible assets, net |
|
174,974 |
|
|
|
205,627 |
|
Deferred tax asset, net |
|
831,682 |
|
|
|
809,306 |
|
Other long-term assets |
|
145,513 |
|
|
|
116,453 |
|
Total assets |
$ |
5,575,130 |
|
|
$ |
5,601,495 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
316,599 |
|
|
$ |
317,828 |
|
Accrued liabilities and other short-term obligations |
|
347,238 |
|
|
|
431,419 |
|
Deferred revenue |
|
179,457 |
|
|
|
154,419 |
|
Operating lease liabilities |
|
15,565 |
|
|
|
16,655 |
|
Current portion of long-term debt |
|
11,700 |
|
|
|
11,700 |
|
Total current liabilities |
|
870,559 |
|
|
|
932,021 |
|
Long-term deferred revenue |
|
77,628 |
|
|
|
74,041 |
|
Other long-term obligations |
|
171,014 |
|
|
|
170,407 |
|
Long-term operating lease liabilities |
|
26,742 |
|
|
|
33,259 |
|
Long-term debt, net |
|
1,538,315 |
|
|
|
1,543,406 |
|
Total liabilities |
|
2,684,258 |
|
|
|
2,753,134 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock – par value |
|
— |
|
|
|
— |
|
Common stock – par value |
|
1,444 |
|
|
|
1,448 |
|
Additional paid-in capital |
|
6,260,095 |
|
|
|
6,262,083 |
|
Accumulated other comprehensive loss |
|
(40,192 |
) |
|
|
(37,767 |
) |
Accumulated deficit |
|
(3,330,475 |
) |
|
|
(3,377,403 |
) |
Total stockholders’ equity |
|
2,890,872 |
|
|
|
2,848,361 |
|
Total liabilities and stockholders’ equity |
$ |
5,575,130 |
|
|
$ |
5,601,495 |
|
|
|
|
|
||||
CIENA CORPORATION |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in thousands) (unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
July 27, |
|
July 29, |
||||
|
2024 |
|
2023 |
||||
Cash flows provided by (used in) operating activities: |
|
|
|
||||
Net income |
$ |
46,928 |
|
|
$ |
163,628 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements |
|
68,997 |
|
|
|
69,213 |
|
Share-based compensation expense |
|
115,433 |
|
|
|
95,405 |
|
Amortization of intangible assets |
|
30,675 |
|
|
|
36,274 |
|
Deferred taxes |
|
(19,909 |
) |
|
|
(64,005 |
) |
Provision for inventory excess and obsolescence |
|
35,400 |
|
|
|
18,767 |
|
Provision for warranty |
|
14,708 |
|
|
|
18,860 |
|
Gain on equity investments, net |
|
— |
|
|
|
(26,368 |
) |
Other |
|
11,968 |
|
|
|
13,694 |
|
Changes in assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
92,421 |
|
|
|
(80,399 |
) |
Inventories |
|
78,220 |
|
|
|
(262,345 |
) |
Prepaid expenses and other |
|
(221,823 |
) |
|
|
72,062 |
|
Operating lease right-of-use assets |
|
8,963 |
|
|
|
11,003 |
|
Accounts payable, accruals and other obligations |
|
(112,352 |
) |
|
|
(133,880 |
) |
Deferred revenue |
|
28,833 |
|
|
|
57,547 |
|
Short and long-term operating lease liabilities |
|
(13,290 |
) |
|
|
(16,596 |
) |
Net cash provided by (used in) operating activities |
|
165,172 |
|
|
|
(27,140 |
) |
Cash flows used in investing activities: |
|
|
|
||||
Payments for equipment, furniture, fixtures and intellectual property |
|
(53,098 |
) |
|
|
(83,422 |
) |
Purchases of investments |
|
(197,303 |
) |
|
|
(119,240 |
) |
Proceeds from sales and maturities of investments |
|
114,899 |
|
|
|
150,646 |
|
Settlement of foreign currency forward contracts, net |
|
(362 |
) |
|
|
(3,272 |
) |
Purchase of equity investments |
|
(21,682 |
) |
|
|
— |
|
Acquisition of business, net of cash acquired |
|
— |
|
|
|
(230,048 |
) |
Net cash used in investing activities |
|
(157,546 |
) |
|
|
(285,336 |
) |
Cash flows provided by (used in) financing activities: |
|
|
|
||||
Proceeds from issuance of term loan, net |
|
— |
|
|
|
497,500 |
|
Payment of long term debt |
|
(5,850 |
) |
|
|
(6,448 |
) |
Payment of debt issuance costs |
|
(2,554 |
) |
|
|
(5,422 |
) |
Payment of finance lease obligations |
|
(3,004 |
) |
|
|
(2,830 |
) |
Shares repurchased for tax withholdings on vesting of stock unit awards |
|
(33,450 |
) |
|
|
(29,794 |
) |
Repurchases of common stock - repurchase program, net |
|
(125,816 |
) |
|
|
(57,736 |
) |
Proceeds from issuance of common stock |
|
34,292 |
|
|
|
31,276 |
|
Net cash provided by (used in) financing activities |
|
(136,382 |
) |
|
|
426,546 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
1,499 |
|
|
|
9,501 |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(127,257 |
) |
|
|
123,571 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
1,010,786 |
|
|
|
994,378 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
883,529 |
|
|
$ |
1,117,949 |
|
Supplemental disclosure of cash flow information |
|
|
|
||||
Cash paid during the period for interest, net |
$ |
64,999 |
|
|
$ |
56,709 |
|
Cash paid during the period for income taxes, net |
$ |
41,736 |
|
|
$ |
68,058 |
|
Operating lease payments |
$ |
14,672 |
|
|
$ |
18,038 |
|
Non-cash investing and financing activities |
|
|
|
||||
Purchase of equipment in accounts payable |
$ |
35,316 |
|
|
$ |
4,579 |
|
Repurchase of common stock in accrued liabilities from repurchase program, net |
$ |
1,762 |
|
|
$ |
3,500 |
|
Operating right-of-use assets subject to lease liability |
$ |
5,326 |
|
|
$ |
9,771 |
|
Gain on equity investments, net |
$ |
— |
|
|
$ |
26,368 |
|
APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements |
||||||||
(in thousands, except per share data) (unaudited) |
||||||||
|
|
|
|
|
||||
|
|
Quarter Ended |
||||||
|
|
July 27, |
|
July 29, |
||||
|
|
2024 |
|
2023 |
||||
Gross Profit Reconciliation (GAAP/non-GAAP) |
|
|
|
|
||||
GAAP gross profit |
|
$ |
403,945 |
|
|
$ |
448,941 |
|
Share-based compensation-products |
|
|
1,660 |
|
|
|
1,118 |
|
Share-based compensation-services |
|
|
3,122 |
|
|
|
2,687 |
|
Amortization of intangible assets |
|
|
2,764 |
|
|
|
3,187 |
|
Total adjustments related to gross profit |
|
|
7,546 |
|
|
|
6,992 |
|
Adjusted (non-GAAP) gross profit |
|
$ |
411,491 |
|
|
$ |
455,933 |
|
Adjusted (non-GAAP) gross profit percentage |
|
|
43.7 |
% |
|
|
42.7 |
% |
|
|
|
|
|
||||
Operating Expense Reconciliation (GAAP/non-GAAP) |
|
|
|
|
||||
GAAP operating expense |
|
$ |
377,202 |
|
|
$ |
370,727 |
|
Share-based compensation-research and development |
|
|
13,118 |
|
|
|
10,954 |
|
Share-based compensation-sales and marketing |
|
|
10,315 |
|
|
|
8,770 |
|
Share-based compensation-general and administrative |
|
|
9,257 |
|
|
|
9,377 |
|
Significant asset impairments and restructuring costs |
|
|
1,361 |
|
|
|
4,174 |
|
Amortization of intangible assets |
|
|
7,185 |
|
|
|
9,487 |
|
Acquisition and integration costs |
|
|
— |
|
|
|
59 |
|
Total adjustments related to operating expense |
|
|
41,236 |
|
|
|
42,821 |
|
Adjusted (non-GAAP) operating expense |
|
$ |
335,966 |
|
|
$ |
327,906 |
|
|
|
|
|
|
||||
Income from Operations Reconciliation (GAAP/non-GAAP) |
|
|
|
|
||||
GAAP income from operations |
|
$ |
26,743 |
|
|
$ |
78,214 |
|
Total adjustments related to gross profit |
|
|
7,546 |
|
|
|
6,992 |
|
Total adjustments related to operating expense |
|
|
41,236 |
|
|
|
42,821 |
|
Total adjustments related to income from operations |
|
|
48,782 |
|
|
|
49,813 |
|
Adjusted (non-GAAP) income from operations |
|
$ |
75,525 |
|
|
$ |
128,027 |
|
Adjusted (non-GAAP) operating margin percentage |
|
|
8.0 |
% |
|
|
12.0 |
% |
|
|
|
|
|
||||
Net Income Reconciliation (GAAP/non-GAAP) |
|
|
|
|
||||
GAAP net income |
|
$ |
14,230 |
|
|
$ |
29,733 |
|
Exclude GAAP provision for income taxes |
|
|
2,125 |
|
|
|
34,608 |
|
Income before income taxes |
|
|
16,355 |
|
|
|
64,341 |
|
Total adjustments related to income from operations |
|
|
48,782 |
|
|
|
49,813 |
|
Loss on equity investment |
|
|
— |
|
|
|
87 |
|
Adjusted income before income taxes |
|
|
65,137 |
|
|
|
114,241 |
|
Non-GAAP tax provision on adjusted income before income taxes |
|
|
14,330 |
|
|
|
25,133 |
|
Adjusted (non-GAAP) net income |
|
$ |
50,807 |
|
|
$ |
89,108 |
|
|
|
|
|
|
||||
Weighted average basic common shares outstanding |
|
|
144,394 |
|
|
|
149,690 |
|
Weighted average dilutive potential common shares outstanding 1 |
|
|
145,361 |
|
|
|
149,977 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
Net Income per Common Share |
|
|
|
|
||||
GAAP diluted net income per potential common share |
|
$ |
0.10 |
|
|
$ |
0.20 |
|
Adjusted (non-GAAP) diluted net income per potential common share |
|
$ |
0.35 |
|
|
$ |
0.59 |
|
1 Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 1.0 million for the third quarter of fiscal 2024; and (ii) 0.3 million for the third quarter of fiscal 2023.
APPENDIX B - Calculation of EBITDA and Adjusted EBITDA |
||||||
(in thousands) (unaudited) |
||||||
|
|
|
|
|
||
|
|
Quarter Ended |
||||
|
|
July 27, |
|
July 29, |
||
|
|
2024 |
|
2023 |
||
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) |
|
|
|
|
||
Net income (GAAP) |
|
$ |
14,230 |
|
$ |
29,733 |
Add: Interest expense |
|
|
24,401 |
|
|
24,060 |
Less: Interest and other income, net |
|
|
14,013 |
|
|
10,187 |
Add: Provision for income taxes |
|
|
2,125 |
|
|
34,608 |
Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements |
|
|
22,981 |
|
|
23,310 |
Add: Amortization of intangible assets |
|
|
9,949 |
|
|
12,674 |
EBITDA |
|
$ |
59,673 |
|
$ |
114,198 |
Add: Share-based compensation expense |
|
|
37,472 |
|
|
32,906 |
Add: Significant asset impairments and restructuring costs |
|
|
1,361 |
|
|
4,174 |
Add: Acquisition and integration costs |
|
|
— |
|
|
59 |
Adjusted EBITDA |
|
$ |
98,506 |
|
$ |
151,337 |
* * *
The adjusted (non-GAAP) measures above and their reconciliation to Ciena's GAAP results for the periods presented reflect adjustments relating to the following items:
- Share-based compensation - a non-cash expense incurred in accordance with share-based compensation accounting guidance.
- Significant asset impairments and restructuring costs - costs incurred as a result of restructuring activities taken to align resources with perceived market opportunities, the redesign of business processes and restructuring certain real estate facilities.
- Amortization of intangible assets - a non-cash expense arising from the acquisition of intangible assets, principally developed technologies and customer-related intangibles, that Ciena is required to amortize over an expected useful life.
- Acquisition and integration costs - primarily consist of financial, legal and accounting advisors' costs and employment-related costs related to Ciena's acquisitions in fiscal 2023.
- Loss on equity investment - reflects changes in the carrying value of a certain equity investment due to triggering events.
-
Non-GAAP tax provision - consists of current and deferred income tax expense commensurate with the level of adjusted income before income taxes and utilizes a current, blended
U.S. and foreign statutory annual tax rate of22.0% for both the fiscal third quarter 2024 and the fiscal third quarter 2023. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240903683576/en/
Press Contact:
Jamie Moody
Ciena Corporation
+1 (410) 694-5761
pr@ciena.com
Investor Contact:
Gregg Lampf
Ciena Corporation
+1 (410) 694-5700
ir@ciena.com
Source: Ciena Corporation
FAQ
What were Ciena's fiscal Q3 2024 revenues?
What was Ciena's GAAP net income per share for Q3 2024?
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What is the non-GAAP net income per share for Ciena in Q3 2024?
What was the adjusted EBITDA for Ciena in Q3 2024?
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