10-KPeriod: FY2012

CIENA CORP Annual Report, Year Ended Oct 31, 2012

Filed December 21, 2012For Securities:CIEN

Summary

Ciena Corporation (CIEN) reported a 5.3% increase in revenue for fiscal year 2012, reaching $1.83 billion, 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 million 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.

Financial Statements
Beta
Revenue$1.83B
Cost of Revenue$1.11B
Gross Profit$724.22M
R&D Expenses$364.18M
Operating Expenses$804.07M
Operating Income-$79.85M
Interest Expense$39.65M
Net Income-$144.02M
EPS (Basic)$-1.45
EPS (Diluted)$-1.45
Shares Outstanding (Basic)99.34M
Shares Outstanding (Diluted)99.34M

Key Highlights

  • 1Revenue increased by 5.3% to $1.83 billion in fiscal year 2012.
  • 2Packet-Optical Transport segment saw a 4.5% revenue increase, driven by demand for high-capacity coherent optical transport.
  • 3Software and Services segment revenue grew by 15.5%, indicating strong customer adoption of management and support offerings.
  • 4The company reported a net loss of $144 million for fiscal year 2012, an improvement from the prior year but still a loss.
  • 5Ciena experienced a challenging market environment with cautious customer spending and prolonged sales cycles impacting profitability.
  • 6The company ended fiscal year 2012 with $642.4 million in cash and cash equivalents.
  • 7Research and development expenses decreased by 4.1% to $364.2 million, reflecting strategic cost management.

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