01—Abstract
Summary
Summary of the 10-K filed December 21, 2012. Cited figures are marked; the original filing is the authoritative source.
Ciena Corporation (CIEN) reported a 5.3% increase in revenue for fiscal year 2012, reaching $1.83 billiona, up from $1.74 billion in fiscal 2011.
This growth was primarily driven by strong performance in the Packet-Optical Transport and Software and Services segments. Despite the revenue increase, the company experienced a net loss of $144 millionb in fiscal 2012, an improvement from the $195.5 million loss in fiscal 2011, but still reflecting operational challenges.
The company faced a difficult macroeconomic environment characterized by cautious customer spending and protracted sales cycles, which impacted its profitability. Ciena continues to focus on its OPn Architecture for next-generation networks, emphasizing the convergence of optical and packet technologies and investing in R&D for higher capacity and programmability.
02—Key points
Key Highlights
- Revenue increased by 5.3% to $1.83 billion in fiscal year 2012.
- Packet-Optical Transport segment saw a 4.5% revenue increase, driven by demand for high-capacity coherent optical transport.
- Software and Services segment revenue grew by 15.5%, indicating strong customer adoption of management and support offerings.
- The company reported a net loss of $144 million for fiscal year 2012, an improvement from the prior year but still a loss.
- Ciena experienced a challenging market environment with cautious customer spending and prolonged sales cycles impacting profitability.
- The company ended fiscal year 2012 with $642.4 million in cash and cash equivalents.
- Research and development expenses decreased by 4.1% to $364.2 million, reflecting strategic cost management.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2012, Ciena Corp lost $0.08.
- Revenue$1.83B100.0%
- Cost of revenue−$1.11B60.5%
- Gross profit$724.2M39.5%
- Operating costs−$804.1M43.8%
- Operating income−$79.8M4.4%
- Interest, other & tax−$64.2M3.5%
- Net income−$144.0M7.9%
04—Financials
Financial Highlights
Figures from 10-KFY2012filed December 21, 2012Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $1.83B$1.74B | +5.3% |
| Cost of Revenue | $1.11B$1.03B | +7.4% |
| Gross Profit | $724.22M$709.15M | +2.1% |
| R&D Expenses | $364.18M$379.86M | −4.1% |
| Operating Expenses | $804.07M$872.34M | −7.8% |
| Operating Income | -$79.85M-$163.19M | +51.1% |
| Interest Expense | $39.65M$37.93M | +4.6% |
| Net Income | -$144.02M-$195.52M | +26.3% |
| EPS (Basic) | $-1.45$-2.04 | +28.9% |
| EPS (Diluted) | $-1.45$-2.04 | +28.9% |
| Shares Outstanding (Basic) | 99.34M95.85M | +3.6% |
| Shares Outstanding (Diluted) | 99.34M95.85M | +3.6% |
05—Questions
Frequently Asked Questions
What was Ciena's revenue performance in fiscal year 2012?
Ciena reported a 5.3% increase in revenue, reaching $1.83 billion in fiscal year 2012, compared to $1.74 billion in fiscal year 2011. This growth was primarily driven by the Packet-Optical Transport and Software and Services segments.
What was Ciena's profitability in fiscal year 2012?
Ciena reported a net loss of $144 million for fiscal year 2012. While this represents an improvement from the $195.5 million net loss in fiscal year 2011, the company remained unprofitable. This was attributed to a challenging macroeconomic environment, increased operating expenses, and pricing pressures in a competitive market.
What are the key segments contributing to Ciena's revenue?
Ciena's revenue is primarily generated from four segments: Packet-Optical Transport, Packet-Optical Switching, Carrier-Ethernet Solutions, and Software and Services. The Packet-Optical Transport segment was the largest contributor, followed by Software and Services.
How did the macroeconomic environment affect Ciena's business in fiscal year 2012?
Ciena experienced a challenging macroeconomic environment marked by sustained uncertainty and volatility. This led to cautious customer spending, protracted sales cycles, and revenue recognition delays, impacting the company's overall financial performance and profitability.
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