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 $ ...

Ciena Corporation’s (CIEN) WaveLogic 6 technology is adopted by Boldyn Networks to enhance its fiber network in New York and New Jersey through a scalable wavelength service that delivers up to 1.6Tb/s per channel. Boldyn Networks is a prominent neutral host provider delivering advanced shared network infrastructure , with operations in North America, Europe and Asia.Being among the first to implement this technology, Boldyn Networks significantly boosts its network capacity and efficiency to meet the risin ...

Advanced network enhancements powered by Ciena's WaveLogic 6 coherent optical technology benefits carriers, enterprises and hyperscalers with reliable, high-speed connections between data centersNEW YORK, Oct. 21, 2024 /PRNewswire/ -- Boldyn Networks (Boldyn), one of the world's largest shared network infrastructure providers, today announced the deployment of scalable wavelength service up to 1.6Tb/s per channel across its fiber network in New York and New Jersey. Boldyn is one of the first in the world to ...

Core Viewpoint - Ciena, an optical networking company, has seen a significant stock price increase of 35% over the past three months despite a decline in revenue and earnings in Q3 of fiscal 2024, driven by optimism regarding a rebound in telecommunications spending and the growing adoption of artificial intelligence (AI) [1][2]. Financial Performance - Ciena's revenue in fiscal Q3 fell 12% year-over-year to $942 million, with non-GAAP net income dropping 41% to $0.35 per share [2]. - The company's optical networking revenue decreased by 15%, while routing and switching revenue fell by 27% [2]. - Global telecom spending declined by 17% in the first half of 2024, impacting Ciena's order book and margins [2]. Market Outlook - Dell'Oro estimates a telecom spending decline of 8% to 10% in 2024, but Citigroup anticipates a 3% increase in North American telecommunications spending in 2025 [3]. - Ciena reported a book-to-bill ratio of over 1 in fiscal Q3, indicating strong demand for its offerings [3]. Inventory and Guidance - Ciena's inventory decreased to $937 million from $1.2 billion year-over-year, suggesting improved business conditions [4]. - The company forecasts revenue of $1.1 billion for the current quarter, indicating a flat year-over-year performance, and an adjusted gross margin in the low to mid-40% range [4]. AI Adoption Impact - Analysts from Morgan Stanley and Jefferies have raised their price targets for Ciena, citing the potential impact of AI on its business, with Jefferies increasing its target to $80 [5][6]. - The demand for faster connectivity in AI data centers is expected to create growth opportunities for Ciena, with global data center bandwidth projected to increase more than fourfold from 2023 to 2027 [6][7]. Future Earnings Potential - Ciena's earnings are expected to grow significantly, with projections of $3.39 per share in fiscal 2026, potentially leading to a stock price of $85 if trading at 25 times earnings [8]. - The company is currently trading at 2.5 times sales and 25 times forward earnings, indicating an attractive investment opportunity for those looking to capitalize on AI growth [8].