Thursday, March 9, 2017

Ciena reports Q1 revenue of $621.50m, up 8.4% yr/yr, net income of $3.86m

Thursday, March 09, 2017  ,  

Ciena announced unaudited financial results for its fiscal first quarter ended January 31, 2017 as follow:

1. Revenue for the first quarter of 2016 of $621.50 million, down 13.2% compared to $716.19 million in the fourth quarter and up 8.4% versus $573.11 million for the first quarter of 2015.

2. Gross profit for the first quarter of $273.78 million, down 14.0% compared to $318.55 million in the third quarter and up 8.9% versus $251.45 million for the first quarter of 2015.

3. R&D expenditure for the first quarter of $116.87 million, up 3.9% compared to $112.45 million in the fourth quarter and up 8.1% versus $108.05 million for the first quarter of 2015.

4. SG&A expenditure for the first quarter of $120.87 million, down 6.3% compared to $129.00 million in the fourth quarter and up 6.4% versus $113.62 million for the first quarter of 2015.

5. Total operating expenditure for the first quarter of $254.68 million, 1.6% compared to $258.87 million in the fourth quarter and up 6.0% versus $240.21 million for the first quarter of 2015.

6. On a GAAP basis, net income for the first quarter of $3.86 million, compared to a net income of $36.59 million in the fourth quarter and a net loss of $11.55 million for the first quarter of 2015.

On a non-GAAP basis, net income for the first quarter of $38.40 million, compared to a net income of $69.40 million in the fourth quarter and versus a net income of $25.23 million for the fourth quarter of 2015.

7. Cash, cash equivalents and short-term investments as of January 31, 2017 of $943.91 million, compared with $1.05 billion as at October 31, 2016.

Additional results and notes

For the first quarter of 2017, Ciena noted that North America customers contributed 65.3% of total revenue (including 61.1% for U.S. customers), versus 64.7% in the fourth quarter, with EMEA accounting for 14.7%, versus 15.7% in the prior quarter, CALA 5.7%, versus 6.5% in the fourth quarter, and Asia Pacific 14.3%, versus 13.1% in the prior quarter, of total sales.

The company had two customers that accounted for greater than 10% of total revenue, overall representing 27% of total revenue, in the first quarter.

Headcount at the end of the first quarter was 5,613, compared with 5,555 at the end of the fourth quarter of 2016.

Outlook

For the second quarter of 2017, Ciena expects revenue in the range $680 to $710 million, representing a sequential increase of 11.8% at the midpoint.