01—Abstract
Summary
Summary of the 10-K filed December 20, 2013. Cited figures are marked; the original filing is the authoritative source.
Ciena Corporation (CIEN) reported a significant revenue increase of 13.6% to $2.08 billiona for fiscal year 2013, up from $1.83 billion in fiscal year 2012.
This growth was primarily driven by strong performance in the Converged Packet Optical segment, which saw a 24.8% revenue increase, indicating a market shift towards next-generation network architectures. The company also experienced growth in its Packet Networking and Software and Services segments, while its Optical Transport segment saw a decline, reflecting industry trends. Despite the revenue growth, Ciena reported a net loss of $85.4 millionb for fiscal year 2013, an improvement from the $144.0 million net loss in fiscal year 2012.
The company's cash position decreased significantly, largely due to debt repayment. Key risks highlighted include intense competition, customer concentration (with AT&T alone accounting for 17.9%c of revenue), and reliance on third-party suppliers.
02—Key points
Key Highlights
- Revenue increased by 13.6% to $2.08 billion in fiscal year 2013, compared to $1.83 billion in fiscal year 2012.
- The Converged Packet Optical segment was the strongest performer, with revenue up 24.8% to $1.19 billion, indicating strong demand for next-generation optical transport solutions.
- Net loss improved to $85.4 million in fiscal year 2013, from $144.0 million in fiscal year 2012, though the company remained unprofitable.
- Cash and cash equivalents decreased significantly to $346.5 million at the end of fiscal year 2013, down from $642.4 million at the end of fiscal year 2012, largely due to debt repayment.
- AT&T represented a significant portion of revenue (17.9%), highlighting customer concentration risk.
- Research and development expenses remained high at $383.4 million, reflecting ongoing investment in innovation.
- Ciena announced its intention to transfer its stock listing from NASDAQ to the New York Stock Exchange.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2013, Ciena Corp lost $0.04.
- Revenue$2.08B100.0%
- Cost of revenue−$1.22B58.5%
- Gross profit$865.2M41.5%
- Operating costs−$867.0M41.6%
- Operating income−$1.8M0.1%
- Interest, other & tax−$83.7M4.0%
- Net income−$85.4M4.1%
04—Financials
Financial Highlights
Figures from 10-KFY2013filed December 20, 2013Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $2.08B$1.83B | +13.6% |
| Cost of Revenue | $1.22B$1.11B | +9.7% |
| Gross Profit | $865.17M$724.22M | +19.5% |
| R&D Expenses | $383.41M$364.18M | +5.3% |
| Operating Expenses | $866.95M$804.07M | +7.8% |
| Operating Income | -$1.77M-$79.85M | +97.8% |
| Interest Expense | $44.04M$39.65M | +11.1% |
| Net Income | -$85.43M-$144.02M | +40.7% |
| EPS (Basic) | $-0.83$-1.45 | +42.8% |
| EPS (Diluted) | $-0.83$-1.45 | +42.8% |
| Shares Outstanding (Basic) | 102.35M99.34M | +3.0% |
| Shares Outstanding (Diluted) | 102.35M99.34M | +3.0% |
05—Questions
Frequently Asked Questions
What is Ciena's primary business and strategy?
Ciena is a network specialist providing networking solutions, including equipment, software, and services, for communications service providers and other network operators. Its strategy focuses on promoting its 'OPn Architecture' for next-generation, converged networks that are scalable and software-programmable, driven by increasing network traffic from mobility, cloud services, and data demands.
How did Ciena perform financially in fiscal year 2013 compared to fiscal year 2012?
In fiscal year 2013, Ciena reported a revenue of $2.08 billion, a 13.6% increase from $1.83 billion in fiscal year 2012. The company's net loss improved to $85.4 million from $144.0 million in the prior year, indicating progress towards profitability. The Converged Packet Optical segment showed particularly strong growth.
What are the main risks Ciena faces?
Ciena faces significant risks including intense competition from larger players, customer concentration (a few large service providers account for a substantial portion of revenue), reliance on third-party suppliers for components, potential for unfavorable contract terms, and the need for continuous investment in R&D to keep pace with rapidly evolving technology.
What is the company's stance on dividends?
Ciena has never paid cash dividends on its capital stock and does not anticipate paying any in the foreseeable future. The company intends to retain its earnings for use in its business.
06—Continue