| From: FUBHO | 12/11/2014 8:08:17 AM | | | | | | HANOVER, Md.--(BUSINESS WIRE)--
Ciena® Corporation ( CIEN), the network specialist, today announced unaudited financial results for its fiscal fourth quarter and year ended October 31, 2014.
For the fiscal fourth quarter 2014, Ciena reported revenue of $591.0 million as compared to $583.4 million for the fiscal fourth quarter 2013. For fiscal year 2014, Ciena reported revenue of $2.3 billion, as compared to $2.1 billion for fiscal year 2013.
On the basis of generally accepted accounting principles (GAAP), Ciena's net loss for the fiscal fourth quarter 2014 was $(30.7) million, or $(0.29) per diluted common share, which compares to a GAAP net loss of $(9.8) million, or $(0.09) per diluted common share, for the fiscal fourth quarter 2013. For fiscal year 2014, Ciena had a GAAP net loss of $(40.6) million, or $(0.38) per diluted common share, which compares to a GAAP net loss of $(85.4) million or $(0.83) per diluted common share for fiscal year 2013.
Ciena's adjusted (non-GAAP) net loss for the fiscal fourth quarter 2014 was $(8.2) million, or $(0.08) per diluted common share, which compares to an adjusted (non-GAAP) net income of $18.3 million, or $0.16 per diluted common share, for the fiscal fourth quarter 2013. For fiscal year 2014, Ciena's adjusted (non-GAAP) net income was $65.8 million, or $0.59 per diluted common share, as compared to an adjusted (non-GAAP) net income of $59.0 million, or $0.54 per diluted common share for fiscal year 2013.
“We delivered strong revenue growth and improved profitability in fiscal 2014 as we benefited from a more diversified customer base and the strong alignment of our solutions with the increasing on-demand needs of our customers,” said Gary B. Smith, president and CEO of Ciena. “As we continue to expand Ciena’s role and reach, we are well positioned to drive continued growth and increased profitability in 2015.”
Fiscal Fourth Quarter 2014 Performance Summary
The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to prior periods, including sequential quarterly and year over year changes. A reconciliation between the GAAP and adjusted (non-GAAP) measures contained in this release is included in Appendices A and B.
| | | | | GAAP Results (unaudited) | | | Q4 | | Q3 | | Q4 | | Period Change | | | FY 2014 | | FY 2014 | | FY 2013 | | Q-T-Q* | | Y-T-Y* | | Revenue | | $ | 591.0 | | | $ | 603.6 | | | $ | 583.4 | | | (2.1 | )% | | 1.3 | % | | Gross margin | | | 37.4 | % | | | 43.7 | % | | | 39.7 | % | | (6.3 | )% | | (2.3 | )% | | Operating expense | | $ | 222.7 | | | $ | 227.0 | | | $ | 232.1 | | | (1.9 | )% | | (4.1 | )% | | Operating margin | | | (0.3 | )% | | | 6.1 | % | | | (0.1 | )% | | (6.4 | )% | | (0.2 | )% | | | | | | | | | | | |
| | | | | Non-GAAP Results (unaudited) | | | Q4 | | Q3 | | Q4 | | Period Change | | | FY 2014 | | FY 2014 | | FY 2013 | | Q-T-Q* | | Y-T-Y* | | Revenue | | $ | 591.0 | | | $ | 603.6 | | | $ | 583.4 | | | (2.1 | )% | | 1.3 | % | | Adj. gross margin | | | 37.9 | % | | | 44.3 | % | | | 40.8 | % | | (6.4 | )% | | (2.9 | )% | | Adj. operating expense | | $ | 203.7 | | | $ | 206.3 | | | $ | 210.5 | | | (1.3 | )% | | (3.2 | )% | | Adj. operating margin | | | 3.4 | % | | | 10.1 | % | | | 4.7 | % | | (6.7 | )% | | (1.3 | )% | | | | | | | | | | | |
| | | | | Revenue by Segment (unaudited) | | | Q4 FY 2014 | | Q3 FY 2014 | | Q4 FY 2013 | | | Revenue | | % | | Revenue | | % | | Revenue | | % | | Converged Packet Optical | | $ | 383.3 | | 64.9 | | $ | 382.0 | | 63.3 | | $ | 350.9 | | 60.2 | | Packet Networking | | | 56.4 | | 9.5 | | | 69.5 | | 11.5 | | | 61.2 | | 10.5 | | Optical Transport | | | 26.5 | | 4.5 | | | 31.0 | | 5.1 | | | 52.6 | | 9.0 | | Software and Services | | | 124.8 | | 21.1 | | | 121.1 | | 20.1 | | | 118.7 | | 20.3 | | Total | | $ | 591.0 | | 100.0 | | $ | 603.6 | | 100.0 | | $ | 583.4 | | 100.0 | | | | | | | | | | | | | |
| * Denotes % change, or in the case of margin, absolute change | | |
Additional Performance Metrics for Fiscal Fourth Quarter 2014
Non-U.S. customers contributed 47.8% of total revenueOne 10%-plus customer represented a total of 12.2% of revenueCash and investments totaled $777.0 millionCash flow from operations totaled $73.8 millionAverage days' sales outstanding (DSOs) were 79Accounts receivable balance was $519.0 millionInventories totaled $254.7 million, including:Raw materials: $64.8 millionWork in process: $8.4 millionFinished goods: $165.8 millionDeferred cost of sales: $75.8 millionReserve for excess and obsolescence: $(60.1) millionProduct inventory turns were 4.8Headcount totaled 5,161Business Outlook for Fiscal First Quarter 2015
Statements relating to business outlook are forward-looking in nature and actual results may differ materially. These statements should be read in the context of the Notes to Investors below.
Ciena expects financial performance for fiscal first quarter 2015 to include:
Revenue in the range of $540 to $570 millionAdjusted (non-GAAP) gross margin percentage in the low 40s rangeAdjusted (non-GAAP) operating expense of approximately $210 million |
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| From: FUBHO | 3/31/2015 9:46:36 PM | | | | | | "It's not an overlay per se and it's not replacing the Ciena 6500 platforms that we put out there on 30,000 some route miles and is our backbone network," said Glen Wellbrock, director of optical transport network architecture and design for Verizon, in an interview with FierceTelecom. "This will be used in many of the similar locations but it's being put in for competitive reasons and is not displacing like the next-gen metro is."
fiercetelecom.com |
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| From: FUBHO | 4/2/2015 4:04:25 PM | | | | | | However, while Comcast has been pushing heavily on the DOCSIS front, it's also been driving fiber deeper into its network, apparently preparing for the launch of the Gigabit Pro FTTH service. According to this morning's press release, Comcast has already built out more than 145,000 route miles of fiber.
lightreading.com |
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| From: FUBHO | 8/22/2016 1:22:16 PM | | | | | | Nevertheless, Ciena is due to recognize "mid- to high-single-digit millions" of metro revenues from Verizon in the third quarter, according to Genovese. He also believes that CenturyLink and Comcast have "meaningfully accelerated" metro spending with Ciena and that AT&T will remain an important customer and "grow its contribution in line with Ciena's overall revenue growth driven by incremental metro 100G+ builds."
One slight concern is the pricing pressure in the competitive European market for routers and optical equipment. That has already led to some gross-margin problems for companies such as Infinera and Juniper Networks Inc. (NYSE: JNPR), but Genovese expects Ciena to report a healthy gross margin of 45%, or even higher, in the third quarter, thanks to "high-margin revenues [from] packet networking and software, as well as by diligent supply chain management."
lightreading.com |
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