Ciena Reports Fiscal Second Quarter 2025 Financial Results

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HANOVER, Md., June 05, 2025--(BUSINESS WIRE)--Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal second quarter ended May 3, 2025.
Q2 Revenue: $1.13 billion
Q2 Net Income per Share: $0.06 GAAP; $0.42 adjusted (non-GAAP)
Share Repurchases: Repurchased approximately 1.2 million shares of common stock for an aggregate price of $84.3 million during the quarter
"Our strong fiscal second quarter results demonstrate our continued global leadership in high-speed connectivity with growing momentum across all of our business segments," said Gary Smith, president and CEO, Ciena. "With accelerating demand driven by cloud and AI, our performance is validating the durability of a positive network infrastructure spending environment. As a result, we have strong visibility and are very confident in both our continued growth and our ability to drive additional operating leverage over time."
For the fiscal second quarter 2025, Ciena reported revenue of $1.13 billion as compared to $910.8 million for the fiscal second quarter 2024.
Ciena's GAAP net income for the fiscal second quarter 2025 was $9.0 million, or $0.06 per diluted common share, which compares to a GAAP net loss of $(16.8) million, or $(0.12) per diluted common share, for the fiscal second quarter 2024.
Ciena's adjusted (non-GAAP) net income for the fiscal second quarter 2025 was $60.7 million, or $0.42 per diluted common share, which compares to an adjusted (non-GAAP) net income of $39.4 million, or $0.27 per diluted common share, for the fiscal second quarter 2024.
Fiscal Second Quarter 2025 Performance Summary
The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to the prior year. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.
GAAP Results (unaudited)
Q2
Q2
Period Change
FY 2025
FY 2024
Y-T-Y*
Revenue
$
1,125.9
$
910.8
23.6
%
Gross margin
40.2
%
42.7
%
(2.5
)%
Operating expense
$
420.0
$
392.6
7.0
%
Operating margin
2.9
%
(0.4
)%
3.3
%
Non-GAAP Results (unaudited)
Q2
Q2
Period Change
FY 2025
FY 2024
Y-T-Y*
Revenue
$
1,125.9
$
910.8
23.6
%
Adj. gross margin
41.0
%
43.5
%
(2.5
)%
Adj. operating expense
$
369.5
$
333.9
10.7
%
Adj. operating margin
8.2
%
6.8
%
1.4
%
Adj. EBITDA
$
116.7
$
85.8
36.0
%
* Denotes % change, or in the case of margin, absolute change
Revenue by Segment (unaudited)
Q2 FY 2025
Q2 FY 2024
Revenue
%**
Revenue
%**
Networking Platforms
Optical Networking
$
773.6
68.7
$
560.2
61.5
Routing and Switching
92.7
8.2
116.1
12.7
Total Networking Platforms
866.3
76.9
676.3
74.2
Platform Software and Services
85.4
7.5
85.4
9.4
Blue Planet Automation Software and Services
28.0
2.5
14.4
1.6
Global Services
Maintenance Support and Training
79.4
7.1
77.4
8.5
Installation and Deployment
58.2
5.2
43.8
4.8
Consulting and Network Design
8.6
0.8
13.5
1.5
Total Global Services
146.2
13.1
134.7
14.8
Total
$
1,125.9
100.0
$
910.8
100.0
** Denotes % of total revenue
Additional Performance Metrics for Fiscal Second Quarter 2025
Revenue by Geographic Region (unaudited)
Q2 FY 2025
Q2 FY 2024
Revenue
% **
Revenue
% **
Americas
$ 833.8
74.1
$ 662.9
72.8
Europe, Middle East and Africa
191.6
17.0
155.8
17.1
Asia Pacific
100.5
8.9
92.1
10.1
Total
$ 1,125.9
100.0
$ 910.8
100.0
** Denotes % of total revenue
Two customer represented 10%-plus of revenue combining for a total of 23.9% of revenue
Cash and investments totaled $1.35 billion
Cash flow from operations totaled $156.9 million
Average days' sales outstanding (DSOs) were 87
Accounts receivable, net balance was $929.8 million
Unbilled contract asset, net balance was $151.8 million
Inventories totaled $874.3 million, including:
Raw materials: $647.0 million
Work in process: $35.3 million
Finished goods: $273.4 million
Deferred cost of sales: $36.6 million
Reserve for excess and obsolescence: $(118.0) million
Product inventory turns were 2.5
Headcount totaled 8,819
Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Second Quarter 2025 Results
Today, Thursday, June 5, 2025, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website certain related supporting materials for its unaudited fiscal second quarter 2025 results.
Ciena's management will also host a discussion today with investors and financial analysts that will include the Company's outlook. The live audio web broadcast beginning at 8:30 a.m. Eastern will be accessible via www.ciena.com. An archived replay of the live broadcast will be available shortly following its conclusion on the Investor Relations page of Ciena's website.
Notes to Investors
Forward-Looking Statements. You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission ("SEC") filings, recent news, financial results, supplemental financial information, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Forward-looking statements in this release include: "Our strong fiscal second quarter results demonstrate our continued global leadership in high-speed connectivity with growing momentum across all of our business segments. With accelerating demand driven by cloud and AI, our performance is validating the durability of a positive network infrastructure spending environment. As a result, we have strong visibility and are very confident in both our continued growth and our ability to drive additional operating leverage over time."
Ciena's actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena's business, including: the effect of broader economic and market conditions on our customers, their spending and their businesses and markets; our ability to execute our business and growth strategies; the impact of macroeconomic conditions and global supply chain constraints or disruptions including increased supply costs and lead times; the impact of the introduction of new technologies by us or our competitors; seasonality and the timing and size of customer orders, their delivery dates and our ability to recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; changes in foreign currency exchange rates; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical tensions or events, including but not limited to the ongoing conflicts between Ukraine and Russia, and Israel and Hamas, and public health emergencies or epidemics and pandemics; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena's periodic reports filed with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K filed with the SEC on December 20, 2024 and included in its Quarterly Report on Form 10-Q for the second quarter of fiscal 2025 to be filed with the SEC. Ciena assumes no obligation to update any forward-looking information included in this press release.
Non-GAAP Presentation of Quarterly and Annual Results. This release includes non-GAAP measures of Ciena's gross profit, operating expense, income from operations, earnings before interest, tax, depreciation and amortization (EBITDA), Adjusted EBITDA, and measures of net income and net income per share. In evaluating the operating performance of Ciena's business, management excludes certain charges and credits that are required by GAAP. These items share one or more of the following characteristics: they are unusual and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of Ciena's control. Management believes that the non-GAAP measures below provide management and investors useful information and meaningful insight to the operating performance of the business. The presentation of these non-GAAP financial measures should be considered in addition to Ciena's GAAP results and these measures are not intended to be a substitute for the financial information prepared and presented in accordance with GAAP. Ciena's non-GAAP measures and the related adjustments may differ from non-GAAP measures used by other companies and should only be used to evaluate Ciena's results of operations in conjunction with our corresponding GAAP results. To the extent not previously disclosed in a prior Ciena financial results press release, Appendices A and B to this press release set forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.
About Ciena. Ciena (NYSE: CIEN) is a global leader in networking systems, services, and software. We build the most adaptive networks in the industry, enabling customers to anticipate and meet ever-increasing digital demands. For three-plus decades, Ciena has brought our humanity to our relentless pursuit of innovation. Prioritizing collaborative relationships with our customers, partners, and communities, we create flexible, open, and sustainable networks that better serve all users—today and into the future. For updates on Ciena, follow us on LinkedIn, X, the Ciena Insights blog, or visit www.ciena.com.
CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter Ended
Six Months Ended
May 3,
April 27,
May 3,
April 27,
2025
2024
2025
2024
Revenue:
Products
$
898,581
$
701,316
$
1,753,366
$
1,537,093
Services
227,297
209,510
444,772
411,442
Total revenue
1,125,878
910,826
2,198,138
1,948,535
Cost of goods sold:
Products
549,984
415,732
1,040,788
882,204
Services
123,056
106,433
232,691
210,708
Total cost of goods sold
673,040
522,165
1,273,479
1,092,912
Gross profit
452,838
388,661
924,659
855,623
Operating expenses:
Research and development
214,868
195,380
407,531
382,649
Selling and marketing
139,683
124,071
276,187
252,229
General and administrative
56,952
49,573
110,854
104,256
Significant asset impairments and restructuring costs
1,948
15,655
3,492
20,626
Amortization of intangible assets
6,545
7,947
13,090
15,199
Total operating expenses
419,996
392,626
811,154
774,959
Income (loss) from operations
32,842
(3,965
)
113,505
80,664
Interest and other income, net
7,871
11,797
19,449
22,447
Interest expense
(21,697
)
(23,861
)
(44,615
)
(47,637
)
Loss on extinguishment and modification of debt
—
—
(729
)
—
Income (loss) before income taxes
19,016
(16,029
)
87,610
55,474
Provision for income taxes
10,047
820
34,069
22,776
Net income (loss)
$
8,969
$
(16,849
)
$
53,541
$
32,698
Net Income (Loss) per Common Share
Basic net income (loss) per common share
$
0.06
$
(0.12
)
$
0.38
$
0.23
Diluted net income (loss) per potential common share
$
0.06
$
(0.12
)
$
0.37
$
0.22
Weighted average basic common shares outstanding
142,503
144,914
142,704
145,104
Weighted average dilutive potential common shares outstanding1
144,972
144,914
145,470
146,059
1 Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income (loss) per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 2.5 million and 2.8 million for the second quarter and first six months of fiscal 2025, respectively; and (ii) 1.0 million for the first six months of fiscal 2024.
CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
May 3,
November 2,
2025
2024
ASSETS
Current assets:
Cash and cash equivalents
$
949,771
$
934,863
Short-term investments
304,177
316,343
Accounts receivable, net
929,799
908,597
Inventories, net
874,326
820,430
Prepaid expenses and other
506,252
564,183
Total current assets
3,564,325
3,544,416
Long-term investments
92,121
80,920
Equipment, building, furniture and fixtures, net
349,349
337,722
Operating lease right-of-use assets
38,655
27,417
Goodwill
444,805
444,707
Other intangible assets, net
147,459
165,020
Deferred tax asset, net
863,571
886,441
Other long-term assets
159,081
154,694
Total assets
$
5,659,366
$
5,641,337
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
419,077
$
423,401
Accrued liabilities and other short-term obligations
381,398
393,905
Deferred revenue
221,835
156,379
Operating lease liabilities
13,170
14,455
Current portion of long-term debt
11,580
11,700
Total current liabilities
1,047,060
999,840
Long-term deferred revenue
83,239
81,240
Other long-term obligations
188,809
185,938
Long-term operating lease liabilities
35,103
25,107
Long-term debt, net
1,528,776
1,533,074
Total liabilities
2,882,987
2,825,199
Stockholders' equity:
Preferred stock – par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding
—
—
Common stock – par value $0.01; 290,000,000 shares authorized; 141,686,082 and 142,656,116 shares issued and outstanding
1,417
1,427
Additional paid-in capital
6,054,464
6,154,869
Accumulated other comprehensive loss
(39,596
)
(46,711
)
Accumulated deficit
(3,239,906
)
(3,293,447
)
Total stockholders' equity
2,776,379
2,816,138
Total liabilities and stockholders' equity
$
5,659,366
$
5,641,337
CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
May 3,
April 27,
2025
2024
Cash flows provided by operating activities:
Net income
$
53,541
$
32,698
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on extinguishment of debt
159
—
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements
49,771
46,016
Share-based compensation expense
88,767
78,075
Amortization of intangible assets
17,555
20,726
Deferred taxes
(10,470
)
(8,946
)
Provision for inventory excess and obsolescence
23,431
23,152
Provision for warranty
10,714
8,629
Other
(6,514
)
11,509
Changes in assets and liabilities:
Accounts receivable
(20,857
)
155,107
Inventories
(76,904
)
5,346
Prepaid expenses and other
84,144
(37,441
)
Operating lease right-of-use assets
5,580
6,111
Accounts payable, accruals and other obligations
(16,755
)
(56,064
)
Deferred revenue
66,493
48,641
Short and long-term operating lease liabilities
(7,986
)
(9,010
)
Net cash provided by operating activities
260,669
324,549
Cash flows used in investing activities:
Payments for equipment, furniture, fixtures and intellectual property
(55,622
)
(33,500
)
Purchases of investments
(159,102
)
(171,131
)
Proceeds from sales and maturities of investments
164,837
83,013
Settlement of foreign currency forward contracts, net
2,441
(828
)
Purchase of equity investments
—
(16,256
)
Net cash used in investing activities
(47,446
)
(138,702
)
Cash flows used in financing activities:
Proceeds for modification of debt, net
19,175
—
Cash paid for extinguishment of debt
(19,175
)
—
Payment of long term debt
(5,790
)
(2,925
)
Payment of debt issuance costs
(12
)
(2,554
)
Payment of finance lease obligations
(2,110
)
(1,989
)
Shares repurchased for tax withholdings on vesting of stock unit awards
(42,266
)
(22,428
)
Repurchases of common stock - repurchase program, net
(168,197
)
(94,817
)
Proceeds from issuance of common stock
17,132
16,876
Net cash used in financing activities
(201,243
)
(107,837
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
2,937
2,659
Net increase in cash, cash equivalents and restricted cash
14,917
80,669
Cash, cash equivalents and restricted cash at beginning of period
935,026
1,010,786
Cash, cash equivalents and restricted cash at end of period
$
949,943
$
1,091,455
Supplemental disclosure of cash flow information
Cash paid during the period for interest, net
$
43,200
$
45,782
Cash paid during the period for income taxes, net
$
55,466
$
29,193
Operating lease payments
$
8,812
$
9,964
Non-cash investing and financing activities
Purchase of equipment in accounts payable
$
12,545
$
6,365
Repurchase of common stock in accrued liabilities from repurchase program, net
$
2,023
$
3,859
Operating right-of-use assets subject to lease liability
$
16,351
$
3,639
APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements
(in thousands, except per share data) (unaudited)
Quarter Ended
May 3,
April 27,
2025
2024
Gross Profit Reconciliation (GAAP/non-GAAP)
GAAP gross profit
$
452,838
$
388,661
Share-based compensation-products
2,033
1,760
Share-based compensation-services
3,980
3,344
Amortization of intangible assets
2,232
2,763
Total adjustments related to gross profit
8,245
7,867
Adjusted (non-GAAP) gross profit
$
461,083
$
396,528
Adjusted (non-GAAP) gross profit percentage
41.0
%
43.5
%
Operating Expense Reconciliation (GAAP/non-GAAP)
GAAP operating expense
$
419,996
$
392,626
Share-based compensation-research and development
17,021
14,066
Share-based compensation-sales and marketing
13,649
11,166
Share-based compensation-general and administrative
11,341
9,875
Significant asset impairments and restructuring costs
1,948
15,655
Amortization of intangible assets
6,545
7,947
Total adjustments related to operating expense
50,504
58,709
Adjusted (non-GAAP) operating expense
$
369,492
$
333,917
Income (Loss) from Operations Reconciliation (GAAP/non-GAAP)
GAAP income (loss) from operations
$
32,842
$
(3,965
)
Total adjustments related to gross profit
8,245
7,867
Total adjustments related to operating expense
50,504
58,709
Total adjustments related to income (loss) from operations
58,749
66,576
Adjusted (non-GAAP) income from operations
$
91,591
$
62,611
Adjusted (non-GAAP) operating margin percentage
8.2
%
6.8
%
Net Income (Loss) Reconciliation (GAAP/non-GAAP)
GAAP net income (loss)
$
8,969
$
(16,849
)
Exclude GAAP provision for income taxes
10,047
820
Income (loss) before income taxes
19,016
(16,029
)
Total adjustments related to income (loss) from operations
58,749
66,576
Adjusted income before income taxes
77,765
50,547
Non-GAAP tax provision on adjusted income before income taxes
17,108
11,120
Adjusted (non-GAAP) net income
$
60,657
$
39,427
Weighted average basic common shares outstanding
142,503
144,914
Weighted average dilutive potential common shares outstanding 1
144,972
146,268
Net Income (Loss) per Common Share
GAAP diluted net income (loss) per potential common share
$
0.06
$
(0.12
)
Adjusted (non-GAAP) diluted net income per potential common share
$
0.42
$
0.27
1 Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 2.5 million for the second quarter of fiscal 2025; and (ii) 1.4 million for the second quarter of fiscal 2024.
APPENDIX B - Calculation of EBITDA and Adjusted EBITDA
(in thousands) (unaudited)
Quarter Ended
May 3,
April 27,
2025
2024
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Net income (loss) (GAAP)
$
8,969
$
(16,849
)
Add: Interest expense
21,697
23,861
Less: Interest and other income, net
7,871
11,797
Add: Provision for income taxes
10,047
820
Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements
25,092
23,208
Add: Amortization of intangible assets
8,777
10,710
EBITDA
$
66,711
$
29,953
Add: Share-based compensation expense
48,024
40,211
Add: Significant asset impairments and restructuring costs
1,948
15,655
Adjusted EBITDA
$
116,683
$
85,819
* * *
The adjusted (non-GAAP) measures above and their reconciliation to Ciena's GAAP results for the periods presented reflect adjustments relating to the following items:
Share-based compensation - a non-cash expense incurred in accordance with share-based compensation accounting guidance.
Significant asset impairments and restructuring costs - costs incurred as a result of restructuring activities taken to align resources with perceived market opportunities, the redesign of business processes and restructuring certain real estate facilities.
Amortization of intangible assets - a non-cash expense arising from the acquisition of intangible assets, principally developed technologies and customer-related intangibles, that Ciena is required to amortize over an expected useful life.
Non-GAAP tax provision - consists of current and deferred income tax expense commensurate with the level of adjusted income before income taxes and utilizes a current, blended U.S. and foreign statutory annual tax rate of 22.0% for both the second quarter of fiscal 2025 and fiscal 2024. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250604142396/en/
Contacts
Press Contact: Jamie MoodyCiena Corporation+1 (410) [e-mail]
Investor Contact: Gregg LampfCiena Corporation+1 (410) [e-mail]