Summary
Ciena Corporation reported its financial results for the second quarter and first six months of fiscal year 2016. For the second quarter, total revenue was $640.7 million, an increase of 3.1% year-over-year, with net income of $14.0 million, or $0.10 per diluted share. For the first six months, revenue increased by 5.5% to $1.21 billion, while net income was $2.5 million, or $0.02 per diluted share. The company saw growth in its Networking Platforms and Global Services segments, while the Software and Software-Related Services segment experienced a decrease in profit. Ciena also strengthened its liquidity position by securing a new $250 million term loan, bringing its total cash, cash equivalents, and investments to over $1.24 billion as of April 30, 2016. Operationally, Ciena acquired high-speed photonics components assets from TeraXion Inc. for $32 million, enhancing its WaveLogic coherent optical chipsets. The company continues to navigate a challenging market with pricing pressures and customer spending constraints, particularly in the EMEA region. Despite these headwinds, Ciena's management remains focused on executing its strategy to promote its OPn Architecture, expand technology leadership, and optimize its business for operating leverage.
Financial Highlights
55 data points| Revenue | $640.72M |
| Cost of Revenue | $357.62M |
| Gross Profit | $283.09M |
| R&D Expenses | $114.60M |
| Operating Expenses | $254.86M |
| Operating Income | $28.23M |
| Interest Expense | $12.61M |
| Net Income | $14.00M |
| EPS (Basic) | $0.10 |
| EPS (Diluted) | $0.10 |
| Shares Outstanding (Basic) | 137.95M |
| Shares Outstanding (Diluted) | 138.89M |
Key Highlights
- 1Total revenue for the second quarter of fiscal 2016 was $640.7 million, up 3.1% year-over-year.
- 2Net income for the second quarter was $14.0 million, or $0.10 per diluted share.
- 3For the first six months of fiscal 2016, total revenue was $1.21 billion, a 5.5% increase year-over-year.
- 4The company acquired high-speed photonics components assets from TeraXion Inc. for $32 million to enhance its optical chipsets.
- 5Cash, cash equivalents, and investments totaled over $1.24 billion as of April 30, 2016.
- 6Ciena secured a new $250 million term loan in April 2016.
- 7The Networking Platforms segment showed revenue growth of 1.9% year-over-year for the quarter, driven by Converged Packet Optical and Packet Networking products.