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Ciena Reports Fiscal Second Quarter 2023 Financial Results

Via Ciena

Jun 6, 2023

HANOVER, Md.--(BUSINESS WIRE)--Jun. 6, 2023-- Ciena Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal second quarter ended April 29, 2023.

  • Q2 Revenue: $1.13 billion
  • Q2 Net Income per Share: $0.38 GAAP; $0.74 adjusted (non-GAAP)

"We delivered outstanding results for the fiscal second quarter as we were able to ship more to customers with continued improvements in supply chain dynamics," said Gary Smith, president and CEO of Ciena. "We are confident in our ability to take market share given our backlog and strategic industry position with market-leading technologies and an expanding addressable market."

For fiscal second quarter 2023, Ciena reported revenue of $1.13 billion as compared to $949.2 million for the fiscal second quarter 2022.

Ciena's GAAP net income for the fiscal second quarter 2023 was $57.7 million, or $0.38 per diluted common share, which compares to a GAAP net income of $38.9 million, or $0.25 per diluted common share, for the fiscal second quarter 2022.

Ciena's adjusted (non-GAAP) net income for the fiscal second quarter 2023 was $110.4 million, or $0.74 per diluted common share, which compares to an adjusted (non-GAAP) net income of $76.4 million, or $0.50 per diluted common share, for the fiscal second quarter 2022.

Fiscal Second Quarter 2023 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)

 

Q2

 

Q2

 

Period Change

FY 2023

 

FY 2022

 

Y-T-Y*

Revenue

$

1,132.7

 

 

$

949.2

 

 

19.3

%

Gross margin

 

43.1

%

 

 

42.3

%

 

0.8

%

Operating expense

$

384.9

 

 

$

343.4

 

 

12.1

%

Operating margin

 

9.1

%

 

 

6.2

%

 

2.9

%

 

Non-GAAP Results (unaudited)

 

Q2

 

Q2

 

Period Change

 

FY 2023

 

FY 2022

 

Y-T-Y*

Revenue

$

1,132.7

 

 

$

949.2

 

 

19.3

%

Adj. gross margin

 

43.7

%

 

 

43.0

%

 

0.7

%

Adj. operating expense

$

338.1

 

 

$

301.1

 

 

12.3

%

Adj. operating margin

 

13.8

%

 

 

11.3

%

 

2.5

%

Adj. EBITDA

$

180.6

 

 

$

129.3

 

 

39.7

%

* Denotes % change, or in the case of margin, absolute change

 

Revenue by Segment (unaudited)

 

Q2 FY 2023

 

Q2 FY 2022

 

Revenue

%**

 

Revenue

%**

Networking Platforms

         

Converged Packet Optical

$

784.5

69.3

 

$

625.3

65.8

Routing and Switching

 

130.4

11.5

 

 

109.2

11.5

Total Networking Platforms

 

914.9

80.8

 

 

734.5

77.3

 

 

 

 

 

 

Platform Software and Services

 

69.4

6.1

 

 

69.1

7.3

 

 

 

 

 

 

Blue Planet Automation Software and Services

 

20.6

1.8

 

 

16.9

1.8

 

 

 

 

 

 

Global Services

 

 

 

 

 

Maintenance Support and Training

 

73.2

6.5

 

 

74.0

7.8

Installation and Deployment

 

39.5

3.5

 

 

41.4

4.4

Consulting and Network Design

 

15.1

1.3

 

 

13.3

1.4

Total Global Services

 

127.8

11.3

 

 

128.7

13.6

 

 

 

 

 

 

Total

$

1,132.7

100.0

 

$

949.2

100.0

** Denotes % of total revenue

Additional Performance Metrics for Fiscal Second Quarter 2023

Revenue by Geographic Region (unaudited)

Q2 FY 2023

Q2 FY 2022

 

Revenue

 

% **

 

Revenue

% **

Americas

$

794.4

 

70.1

 

$

700.8

73.8

Europe, Middle East and Africa

 

173.4

 

15.3

 

 

145.1

15.3

Asia Pacific

 

164.9

 

14.6

 

 

103.3

10.9

Total

$

1,132.7

 

100.0

 

$

949.2

100.0

** Denotes % of total revenue

 

 

 

 

 

 

  • One customer represented 10%-plus of revenue for a total of 10.9% of revenue
  • Cash and investments totaled $1.34 billion
  • Cash flow from operations totaled $229.8 million
  • Average days' sales outstanding (DSOs) were 97
  • Accounts receivable, net balance was $1.04 billion
  • Unbilled contract assets, net balance was $180.0 million
  • Inventories totaled $1.10 billion, including:
    • Raw materials: $753.4 million
    • Work in process: $20.9 million
    • Finished goods: $308.0 million
    • Deferred cost of sales: $58.1 million
    • Reserve for excess and obsolescence: $(42.3) million
  • Product inventory turns were 2.0
  • Headcount totaled 8,385
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