Ciena Reports Fiscal Third Quarter 2024 Financial Results

Rhea-AI Summary

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.

Positive

• 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.

Negative

• 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.

Financial Analyst

Ciena's Q3 FY2024 results show mixed signals. Revenue declined 11.8% year-over-year to $942.3 million, falling short of the previous year's $1.07 billion. This significant drop raises concerns about the company's growth trajectory. However, there are some positive aspects to consider:

• Gross margin improved slightly, increasing by 0.9% to 42.9% 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 $0.20 to $0.10 year-over-year. This 50% decrease in profitability warrants careful monitoring. The company's focus on cloud providers and AI-capable infrastructure could be a strategic advantage, but execution will be key to reversing the current downtrend.

Tech Industry Expert

Ciena's Q3 results reflect the ongoing shifts in the networking industry. The 11.8% revenue decline suggests challenges in the current market environment. However, there are notable bright spots:

• 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 (15.6% drop) is concerning, as it's Ciena's largest segment. The company needs to accelerate its transition to next-generation technologies to offset this decline. The gradual recovery with service providers mentioned by CEO Gary Smith could be a positive sign, but concrete evidence of this recovery will be important in upcoming quarters.

Market Research Analyst

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 represents 76.3% of total revenue, up from 70.2% 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.

HANOVER, Md.--(BUSINESS WIRE)-- 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)
		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			% **
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

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 Ukraine and Russia, and Israel and Hamas, and public health emergencies or epidemics, including the COVID-19 pandemic; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K filed with the SEC on December 15, 2023 and included in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2024 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 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, 2024				October 28, 2023
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 $0.01; 20,000,000 shares authorized; zero shares issued and outstanding		—				—
Common stock – par value $0.01; 290,000,000 shares authorized; 144,426,873 and 144,829,938 shares issued and outstanding		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 of 22.0% 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?

Ciena's fiscal Q3 2024 revenues were $942.3 million, down 11.8% from $1.07 billion in Q3 2023.

What was Ciena's GAAP net income per share for Q3 2024?

Ciena's GAAP net income per share for Q3 2024 was $0.10.

How much did Ciena repurchase in shares during Q3 2024?

Ciena repurchased approximately 0.6 million shares for $29 million during Q3 2024.

What is the non-GAAP net income per share for Ciena in Q3 2024?

Ciena's non-GAAP net income per share for Q3 2024 was $0.35.

What was the adjusted EBITDA for Ciena in Q3 2024?

The adjusted EBITDA for Ciena in Q3 2024 was $98.5 million, a decrease of 34.9% YoY.

How did Ciena's Networking Platforms segment perform in Q3 2024?

Ciena's Networking Platforms segment generated $699.5 million in Q3 2024, down from $846.6 million in Q3 2023.