Summary
Ciena Corporation reported revenue of $573.1 million for the quarter ended January 31, 2016, an increase of 8.3% compared to the same period last year. The company reported a net loss of $11.5 million, or $0.08 per diluted share, which is an improvement from the net loss of $18.8 million, or $0.17 per diluted share, in the prior year's quarter. The company's revenue growth was primarily driven by its Networking Platforms segment, which saw an 8.6% increase year-over-year, supported by strong demand for its Converged Packet Optical products. Despite the revenue growth and improved net loss, operating expenses increased due to higher research and development, amortization of intangible assets, and acquisition/integration costs, partially offset by reduced restructuring costs. Key financial highlights include a gross profit margin of 43.9%, an increase from 43.5% in the prior year's quarter, driven by stronger service gross margins. The company maintained a healthy cash position, with $660.3 million in cash and cash equivalents and $210.0 million in short-term investments as of January 31, 2016. Ciena also noted continued investment in R&D, an expansion of its software and software-related services segment, and progress in its global services offerings.
Financial Highlights
53 data points| Revenue | $573.12M |
| Cost of Revenue | $321.67M |
| Gross Profit | $251.45M |
| R&D Expenses | $108.05M |
| Operating Expenses | $240.21M |
| Operating Income | $11.24M |
| Interest Expense | $12.71M |
| Net Income | -$11.55M |
| EPS (Basic) | $-0.08 |
| EPS (Diluted) | $-0.08 |
| Shares Outstanding (Basic) | 136.68M |
| Shares Outstanding (Diluted) | 136.68M |
Key Highlights
- 1Total revenue for the quarter increased by 8.3% year-over-year to $573.1 million.
- 2Net loss improved to $11.5 million ($0.08/share) from $18.8 million ($0.17/share) in the prior year period.
- 3Gross profit margin improved to 43.9% from 43.5% year-over-year, driven by better service margins.
- 4Networking Platforms segment revenue grew by 8.6%, supported by strong demand for Converged Packet Optical products.
- 5Operating expenses increased by 6.2% to $240.2 million, primarily due to higher R&D and amortization costs.
- 6The company ended the quarter with a strong liquidity position, holding $660.3 million in cash and cash equivalents.
- 7Acquisition and integration costs related to the Cyan acquisition were $1.3 million for the quarter.