Core Insights - Ciena's international revenue performance is crucial for assessing its financial resilience and growth prospects [1][2] - The company's dependence on global markets presents both opportunities and challenges [9][10] Revenue Performance - Ciena's total revenue for the quarter was $1.12 billion, a decline of 0.5% year over year [4] - Revenue from Europe, Middle East, and Africa was $150.7 million, accounting for 13.41% of total revenue, with a surprise decline of -17.11% compared to analyst expectations [5] - Asia Pacific contributed $121.2 million, or 10.78% of total revenue, with a surprise decline of -1.97% [6] Future Projections - Analysts expect Ciena's total revenue to be $1.04 billion in the current fiscal quarter, indicating a 0.5% increase year over year [7] - For the entire year, total revenue is forecasted at $4.43 billion, reflecting a 10.3% improvement from the previous year [8] - Expected contributions from Europe, Middle East, and Africa are 15.9% ($703.45 million) and from Asia Pacific 10.1% ($445.73 million) [8] Stock Performance - Ciena's stock has gained 36.9% over the past month, outperforming the S&P 500's 3.6% increase [13] - Over the past three months, the stock increased by 47.8%, compared to the S&P 500's 8.1% rise [13]

Following my coverage on Ciena Corporation (NYSE: CIEN ) in Sep’24, which I recommended a buy rating due to my expectation that the business is now in a growth cycle, this post is to provideI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to companies with stead ...

Ciena Corporation (NYSE: CIEN ) , is a Maryland-based company founded in 1992 that helps power the backbone of the internet and modern communication networks by specializing in creating advanced equipment and software for fiber-optic systems, which are the networksThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap ...

Ciena Corporation (CIEN) reported fourth-quarter fiscal 2024 (ended Nov. 2) results, wherein adjusted earnings per share (EPS) of 54 cents missed the Zacks Consensus Estimate of 66 cents. Also, the bottom line declined 28% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Quarterly total revenues dipped 0.5% year over year to $1,124.1 million. The top line, however, surpassed the Zacks Consensus Estimate of $1,105 million, driven by robust demand for its solutions in cl ...

The optical networking expert didn't hit fourth-quarter results out of the ballpark, but it did set up ambitious goals for the years ahead.Shares of network equipment maker Ciena (CIEN 16.08%) soared on Thursday morning, following the release of a mixed earnings report paired with bullish guidance targets. The price jump peaked at 21.9% near 10 a.m. ET, cooling down to a 15% gain three hours later.Mixed results and bullish guidanceWall Street's consensus estimates for Ciena's fourth-quarter report pointed t ...

Financial Data and Key Metrics Changes - Ciena reported Q4 revenue of $1.12 billion, with a book-to-bill ratio above one for the second consecutive quarter [10][32] - Adjusted gross margin for Q4 was 41.6%, impacted by a $39 million charge for excess and obsolescence in inventory, which reduced the margin by approximately 200 basis points [13][34] - For the full fiscal year, Ciena achieved revenues of $4 billion, with an adjusted gross margin of 43.6% and adjusted net income of $266 million [38][39] Business Line Data and Key Metrics Changes - Q4 saw the largest shipments of line systems, primarily to large cloud providers, with total shipments of WaveLogic 5 Nano exceeding 43,000 units [12][14] - The introduction of WaveLogic 6 Extreme and WaveLogic 6 Nano coherent light pluggables is expected to enhance performance and efficiency in data center networks [11][24] Market Data and Key Metrics Changes - Bandwidth demand continues to grow at approximately 30% annually, with cloud and AI driving this growth beyond historical levels [16][28] - Service provider orders in North America outpaced revenue for the first time in nearly two years, indicating a recovery in purchasing patterns [15] Company Strategy and Development Direction - Ciena's strategy focuses on extending leadership in core business areas, expanding into adjacent markets, and driving operational transformation [17][22][26] - The company aims to leverage its optical technology to capture growth opportunities in data center applications and broadband access [25][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future performance, citing positive market dynamics and strong demand from cloud and AI sectors [31][28] - Ciena anticipates average annual revenue growth of 8% to 11% over the next three years, with targeted adjusted operating margins of 15% to 16% by fiscal year 2027 [41][42] Other Important Information - Ciena repurchased approximately 2.1 million shares for $132 million, completing a $1 billion share repurchase program [37] - The company plans to repurchase an additional $1 billion in shares over the next three fiscal years [37] Q&A Session Summary Question: Insights on fiscal 2025 guidance and market segmentation - Management noted that the service provider market is stabilizing, with cloud traffic driving growth alongside improvements in North America and international markets [50][51] Question: Concerns about gross margin and obsolescence risk - Management indicated that the recent excess and obsolescence charges are not expected to recur, and gross margins are projected to improve due to a favorable product mix [56][58] Question: Trends in direct cloud sales versus managed fiber networks - Cloud providers prefer direct purchases, but there is an increasing trend for them to utilize service providers for capacity building due to rapid demand [62][64] Question: Customer concentration and forecast for fiscal 2025 - Management expects a similar mix of 10% customers, with potential for some variability in specific customers but overall stability in customer concentration [68] Question: Guidance on gross margins and operational expenses - Management confirmed expectations for gross margin improvement, driven by a higher concentration of line systems and operational leverage [72][95] Question: Long-term opportunities in coherent technology - Management anticipates significant growth in coherent technology applications within data centers, with revenue expected to materialize in 2026 [99][100]

For the quarter ended October 2024, Ciena (CIEN) reported revenue of $1.12 billion, down 0.5% over the same period last year. EPS came in at $0.54, compared to $0.75 in the year-ago quarter.The reported revenue represents a surprise of +1.77% over the Zacks Consensus Estimate of $1.1 billion. With the consensus EPS estimate being $0.66, the EPS surprise was -18.18%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectat ...

Ciena (CIEN) came out with quarterly earnings of $0.54 per share, missing the Zacks Consensus Estimate of $0.66 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -18.18%. A quarter ago, it was expected that this developer of high-speed networking technology would post earnings of $0.26 per share when it actually produced earnings of $0.35, delivering a surprise of 34.62%.Over the las ...

Revenue and Financial Performance - Q4 Revenue: $1.12 billion, a slight decrease of 0.5% compared to $1.13 billion in Q4 2023[2][6] - Fiscal Year 2024 Revenue: $4.01 billion, down 8.5% from $4.39 billion in fiscal year 2023[2][6] - Q4 revenue reached $1,124.1 million, a slight decrease from $1,129.5 million in the previous year[20] - Total revenue for the twelve months ended October 28, 2023, was $4,386.5 million, compared to $4,014.9 million in the same period of 2024[20] - The company anticipates accelerated revenue growth and market share expansion driven by Cloud and AI demand[14] Net Income and Earnings - Q4 GAAP Net Income: $37.0 million, or $0.25 per diluted share, down from $91.2 million, or $0.62 per share, in Q4 2023[3] - Q4 Adjusted (non-GAAP) Net Income: $79.3 million, or $0.54 per diluted share, compared to $111.2 million, or $0.75 per share, in Q4 2023[2] - Fiscal Year 2024 GAAP Net Income: $84.0 million, or $0.58 per diluted share, compared to $254.8 million, or $1.71 per share, in fiscal year 2023[3] - Fiscal Year 2024 Adjusted (non-GAAP) Net Income: $266.3 million, or $1.82 per diluted share, compared to $406.3 million, or $2.72 per share, in fiscal year 2023[2] - Net income for Q4 was $37.0 million, down from $91.2 million in the same quarter of the previous year[20] - Net income for the year ended November 2, 2024, was $83.96 million, a significant decrease from $254.83 million in the previous year[25] - Adjusted (non-GAAP) net income for the year ended November 2, 2024, was $266.31 million, down from $406.28 million in the previous year[28] - GAAP diluted net income per potential common share for Q4 2024 was $0.25, compared to $0.62 in Q4 2023[32] - Adjusted (non-GAAP) diluted net income per potential common share for Q4 2024 was $0.54, compared to $0.75 in Q4 2023[32] - Net income (GAAP) for Q4 2024 was $37.0 million, compared to $91.2 million in Q4 2023[36] Cash Flow and Investments - Cash and Investments: $1.33 billion at the end of fiscal year 2024[11] - Cash Flow from Operations: $349.3 million for Q4 2024 and $514.5 million for fiscal year 2024[11] - Net cash provided by operating activities increased to $514.53 million from $168.33 million year-over-year[25] - Net cash used in investing activities decreased to $306.48 million from $383.45 million year-over-year[25] - Repurchases of common stock under the repurchase program totaled $254.50 million, up from $242.20 million in the previous year[25] Operating Expenses and Margins - Gross profit for Q4 was $460.0 million, compared to $486.3 million in the prior year[20] - Operating expenses for Q4 increased to $400.8 million from $395.0 million in the previous year[20] - Adjusted (non-GAAP) gross profit for the year ended November 2, 2024, was $1.75 billion, with a gross profit percentage of 43.6%[29] - Adjusted (non-GAAP) operating margin percentage for the year ended November 2, 2024, was 9.7%, compared to 13.1% in the previous year[28] - Share-based compensation expense increased to $156.40 million from $130.46 million year-over-year[25] - Depreciation and amortization expenses totaled $92.85 million, slightly up from $92.56 million in the previous year[25] - Provision for inventory excess and obsolescence increased significantly to $77.34 million from $29.46 million year-over-year[25] - Share-based compensation expense for Q4 2024 was $41.1 million, compared to $34.9 million in Q4 2023[36] - Depreciation and amortization expenses for Q4 2024 totaled $33.8 million, compared to $36.7 million in Q4 2023[36] - Significant asset impairments and restructuring costs for Q4 2024 were $2.6 million, compared to $7.2 million in Q4 2023[36] Balance Sheet and Assets - Cash and cash equivalents stood at $934.9 million as of November 2, 2024, down from $1,010.6 million in the previous year[23] - Accounts receivable decreased to $908.6 million from $1,003.9 million in the previous year[23] - Total assets increased slightly to $5,641.3 million from $5,601.5 million in the previous year[23] - Long-term debt remained stable at $1,533.1 million as of November 2, 2024[23] EBITDA and Adjusted EBITDA - EBITDA for Q4 2024 was $93.0 million, compared to $128.0 million in Q4 2023[36] - Adjusted EBITDA for Q4 2024 was $136.7 million, compared to $178.8 million in Q4 2023[36] Shareholder Metrics - Weighted average basic common shares outstanding for Q4 2024 were 144.2 million, compared to 147.4 million in Q4 2023[32] - Weighted average dilutive potential common shares outstanding for Q4 2024 were 146.5 million, compared to 147.9 million in Q4 2023[32] Customer Concentration - Two customers represented 31.2% of Q4 2024 revenue and 25.1% of fiscal year 2024 revenue[11] Headcount - Headcount: 8,657 at the end of fiscal year 2024[11]

Ciena Corporation CIEN will release its fourth-quarter financial results, before the opening bell, on Thursday, Dec. 12.Analysts expect the Hanover, Maryland-based retailer to report quarterly earnings at 65 cents per share, down from 75 cents per share in the year-ago period. Ciena projects quarterly revenue of $1.1 billion, compared to $1.13 billion a year earlier, according to data from Benzinga Pro.On Tuesday, Stifel analyst Ruben Roy reiterated Ciena with a Buy and raised the price target from $75 to $ ...