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Yahoo
6 hours ago
- Business
- Yahoo
Ciena shares fall as Q2 earnings miss overshadows revenue beat
-- Ciena Corporation reported mixed fiscal second-quarter results on Thursday, with earnings falling short of analyst expectations despite better-than-anticipated revenue. The networking systems company's shares dropped 5.2% following the announcement. For the quarter ended May 3, 2025, Ciena (NYSE:CIEN) posted adjusted earnings per share of $0.42, missing the analyst consensus of $0.51. However, revenue came in at $1.13 billion, surpassing estimates of $1.09 billion and representing a 23.6% increase YoY from $910.8 million. The company's revenue growth was primarily driven by its Optical Networking segment, which saw sales jump to $773.6 million from $560.2 million in the same quarter last year. However, Ciena's gross margin declined to 41% on a non-GAAP basis, down from 43.5% in the prior-year period. CEO Gary Smith commented on the results, stating, "Our strong fiscal second quarter results demonstrate our continued global leadership in high-speed connectivity with growing momentum across all of our business segments." Despite the earnings miss, Ciena reported improved cash flow from operations, which totaled $156.9 million for the quarter. The company also continued its share repurchase program, buying back approximately 1.2 million shares for $84.3 million. Looking ahead, Ciena expressed confidence in its growth prospects, citing accelerating demand driven by cloud and AI technologies. Related articles Ciena shares fall as Q2 earnings miss overshadows revenue beat Silver mining stocks surge as spot silver hits 13-year high Bernstein upgrades Texas Instruments as margin pressures ease Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
9 hours ago
- Business
- Yahoo
Ciena Reports Fiscal Second Quarter 2025 Financial Results
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 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 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 Contacts Press Contact: Jamie MoodyCiena Corporation+1 (410) 694-5761pr@ Investor Contact: Gregg LampfCiena Corporation+1 (410) 694-5700ir@
Business Wire
9 hours ago
- Business
- Business Wire
Ciena Reports Fiscal Second Quarter 2025 Financial Results
HANOVER, Md.--(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 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 Expand Revenue by Segment (unaudited) Q2 FY 2025 Q2 FY 2024 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 ** Denotes % of total revenue Expand 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 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 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. Expand 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 Expand 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 Expand 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 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 Expand 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. Expand * * * 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.
Glasgow Times
a day ago
- Business
- Glasgow Times
Swinney ‘must be held to account' over Scottish Water pay dispute, unions say
Members of GMB Scotland and other unions at the publicly-owned organisation began strike action on Monday and it will continue until Sunday. Staff represented by GMB, Unite and Unison previously rejected a 3.4% pay increase covering the last nine months as the company changed the date for annual rises to take effect from July to April. Speaking at a rally of striking workers at Scottish Water's Shieldhall depot in Glasgow on Wednesday, GMB general secretary Gary Smith warned the ongoing dispute could become one of the most significant in the country's public sector and he urged ministers to intervene. Unions also claim Scottish Water has failed to appropriately engage in pay negotiations, and that chief executive Alex Plant attended talks on Tuesday for the first time but only stayed briefly. GMB general secretary Gary Smith spoke to striking Scottish Water workers on Wednesday (GMB/PA) Mr Smith said: 'How did we end up with workers being refused a fair pay rise while executives line their pockets with record bonuses? How did we end up with a chief executive finally turning up to pay talks after a year and only staying for 20 seconds? 'It is damning of the management of Scottish Water but damning too of the hypocrisy of a Scottish Government that advocates for fair work and the protection of public services. 'John Swinney and his ministers must be held to account for this growing scandal. From this point forward, every time they talk to us about fair work and how Scotland treats working people better, we will point to Scottish Water and its absolute failure to make good on that promise.' Tuesday's meeting escalated the dispute further, with unions now accusing the employer of weakening the pay offer. Workers carrying out emergency repairs, testing and maintenance are now striking, which they have warned will threaten the daily operations of the water supplier. Claire Greer, GMB Scotland organiser, said the unions had agreed to attend the hastily-convened meeting on Tuesday night in the hope of a better offer and a possible resolution. She said: 'Scottish Water has shown no interest in reaching a fair settlement and sat on its hands as a dispute that could have easily been resolved months ago escalated. John Swinney has been urged to intervene and help resolve the dispute (PA) 'The Scottish Government must now explain to its senior management team why its refusal to clearly and honestly engage with its own workforce cannot stand.' Unison regional manager Simon Macfarlane said: 'Scottish Water staff are very angry in how last night's pay talks were handled by the company. Scottish Water boss, Alex Plant, appeared at the table for less than five minutes. 'First Minister John Swinney needs to step in and help get this sorted. Scottish Water is behaving like a rogue employer, not an exemplar of fair work.' Sam Ritchie, Unite industrial officer, said: 'Unite members are angry and deeply frustrated with the management of Scottish Water. There has been disregard and arrogance shown towards the concerns of the workforce in meetings with management. This dispute is not just about wages, it's about fairness, dignity and respect. 'Alex Plant, chief executive, who received a pay package last year of nearly half a million pounds, came into the negotiating room for all of two minutes. 'If Mr Plant can collect an exorbitant salary from the taxpayer then at the very least he should listen to the staff who earn a fraction of his pay. Talks have hit a roadblock and they are not progressing. 'Unions and management are set to resume talks over the coming days but no new offer is currently on the table which would end this dispute.' Also in attendance was union body the Scottish Trade Unions Congress, and its general Secretary Roz Foyer said: 'The Scottish Government has a responsibility to step in and help find a solution. 'Workers and their unions are committed to securing a positive outcome, not only for their members but to uphold the standards within our public services. 'That cannot happen while Scottish Water continues its intransigence in this dispute.' A Scottish Water spokesperson said: 'This is a matter for Scottish Water and its trade unions, who we value our relationship with. 'Scottish Water has acted in good faith and with integrity throughout these negotiations. 'We have a long history of being a good employer – with wages rising by about 11% above inflation in the past decade – at a time when many people in other sectors saw their wages stagnate or go backwards. 'We've made another strong offer this time that is comfortably above inflation and prioritises those on the lowest wages.' A Scottish Government spokesperson said: 'Ministers have set out their policy in relation to public sector pay. 'It is a matter for Scottish Water and its unions to agree a settlement within the constraints of that policy and affordability. 'The Scottish Government urges both parties to resume negotiations to find an agreement.'
South Wales Argus
a day ago
- Business
- South Wales Argus
Swinney ‘must be held to account' over Scottish Water pay dispute, unions say
Members of GMB Scotland and other unions at the publicly-owned organisation began strike action on Monday and it will continue until Sunday. Staff represented by GMB, Unite and Unison previously rejected a 3.4% pay increase covering the last nine months as the company changed the date for annual rises to take effect from July to April. Speaking at a rally of striking workers at Scottish Water's Shieldhall depot in Glasgow on Wednesday, GMB general secretary Gary Smith warned the ongoing dispute could become one of the most significant in the country's public sector and he urged ministers to intervene. Unions also claim Scottish Water has failed to appropriately engage in pay negotiations, and that chief executive Alex Plant attended talks on Tuesday for the first time but only stayed briefly. GMB general secretary Gary Smith spoke to striking Scottish Water workers on Wednesday (GMB/PA) Mr Smith said: 'How did we end up with workers being refused a fair pay rise while executives line their pockets with record bonuses? How did we end up with a chief executive finally turning up to pay talks after a year and only staying for 20 seconds? 'It is damning of the management of Scottish Water but damning too of the hypocrisy of a Scottish Government that advocates for fair work and the protection of public services. 'John Swinney and his ministers must be held to account for this growing scandal. From this point forward, every time they talk to us about fair work and how Scotland treats working people better, we will point to Scottish Water and its absolute failure to make good on that promise.' Tuesday's meeting escalated the dispute further, with unions now accusing the employer of weakening the pay offer. Workers carrying out emergency repairs, testing and maintenance are now striking, which they have warned will threaten the daily operations of the water supplier. Claire Greer, GMB Scotland organiser, said the unions had agreed to attend the hastily-convened meeting on Tuesday night in the hope of a better offer and a possible resolution. She said: 'Scottish Water has shown no interest in reaching a fair settlement and sat on its hands as a dispute that could have easily been resolved months ago escalated. John Swinney has been urged to intervene and help resolve the dispute (PA) 'The Scottish Government must now explain to its senior management team why its refusal to clearly and honestly engage with its own workforce cannot stand.' Unison regional manager Simon Macfarlane said: 'Scottish Water staff are very angry in how last night's pay talks were handled by the company. Scottish Water boss, Alex Plant, appeared at the table for less than five minutes. 'First Minister John Swinney needs to step in and help get this sorted. Scottish Water is behaving like a rogue employer, not an exemplar of fair work.' Sam Ritchie, Unite industrial officer, said: 'Unite members are angry and deeply frustrated with the management of Scottish Water. There has been disregard and arrogance shown towards the concerns of the workforce in meetings with management. This dispute is not just about wages, it's about fairness, dignity and respect. 'Alex Plant, chief executive, who received a pay package last year of nearly half a million pounds, came into the negotiating room for all of two minutes. 'If Mr Plant can collect an exorbitant salary from the taxpayer then at the very least he should listen to the staff who earn a fraction of his pay. Talks have hit a roadblock and they are not progressing. 'Unions and management are set to resume talks over the coming days but no new offer is currently on the table which would end this dispute.' Also in attendance was union body the Scottish Trade Unions Congress, and its general Secretary Roz Foyer said: 'The Scottish Government has a responsibility to step in and help find a solution. 'Workers and their unions are committed to securing a positive outcome, not only for their members but to uphold the standards within our public services. 'That cannot happen while Scottish Water continues its intransigence in this dispute.' A Scottish Water spokesperson said: 'This is a matter for Scottish Water and its trade unions, who we value our relationship with. 'Scottish Water has acted in good faith and with integrity throughout these negotiations. 'We have a long history of being a good employer – with wages rising by about 11% above inflation in the past decade – at a time when many people in other sectors saw their wages stagnate or go backwards. 'We've made another strong offer this time that is comfortably above inflation and prioritises those on the lowest wages.' The Scottish Government has been asked for comment.
