HANOVER, Md.--(BUSINESS WIRE)--Ciena Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal first quarter ended January 30, 2021.
- Q1 Revenue: $757.1 million
- Q1 Net Income per Share: $0.35 GAAP; $0.52 adjusted (non-GAAP)
- Share Repurchases: Repurchased approximately 0.3 million shares of common stock for an aggregate price of $13.2 million during the quarter
"We delivered solid revenue and profitability in the first fiscal quarter in the face of continued challenging market conditions and a dynamic industry environment," said Gary Smith, president and CEO of Ciena. "Our strong market position has enabled us to start the year largely as expected, and we are leveraging our innovation leadership and competitive advantage to deliver on our long-term growth opportunities."
For the fiscal first quarter 2021, Ciena reported revenue of $757.1 million as compared to $832.9 million for the fiscal first quarter 2020.
Ciena's GAAP net income for the fiscal first quarter 2021 was $55.3 million, or $0.35 per diluted common share, which compares to a GAAP net income of $62.3 million, or $0.40 per diluted common share, for the fiscal first quarter 2020.
Ciena's adjusted (non-GAAP) net income for the fiscal first quarter 2021 was $81.3 million, or $0.52 per diluted common share, which compares to an adjusted (non-GAAP) net income of $81.7 million, or $0.52 per diluted common share, for the fiscal first quarter 2020.
Fiscal First Quarter 2021 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 |
|||||||||||
|
Q1 |
Q1 |
||||||||||
|
FY 2021 |
FY 2020 |
Y-T-Y* |
|||||||||
|
Revenue |
$ |
757.1 |
$ |
832.9 |
(9.1 |
)% |
|||||
|
Gross margin |
47.3 |
% |
44.5 |
% |
2.8 |
% |
|||||
|
Operating expense |
$ |
282.1 |
$ |
292.6 |
(3.6 |
)% |
|||||
|
Operating margin |
10.0 |
% |
9.4 |
% |
0.6 |
% |
|||||
|
Non-GAAP Results |
|||||||||||
|
Q1 |
Q1 |
||||||||||
|
FY 2021 |
FY 2020 |
Y-T-Y* |
|||||||||
|
Revenue |
$ |
757.1 |
$ |
832.9 |
(9.1 |
)% |
|||||
|
Adj. gross margin |
48.0 |
% |
45.1 |
% |
2.9 |
% |
|||||
|
Adj. operating expense |
$ |
253.0 |
$ |
266.4 |
(5.0 |
)% |
|||||
|
Adj. operating margin |
14.6 |
% |
13.1 |
% |
1.5 |
% |
|||||
|
Adj. EBITDA |
$ |
133.8 |
$ |
135.3 |
(1.1 |
)% |
|||||
|
* Denotes % change, or in the case of margin, absolute change |
|||||||||||
|
Revenue by Segment |
||||||||||||||
|
Q1 FY 2021 |
Q1 FY 2020 |
|||||||||||||
|
Revenue |
%** |
Revenue |
%** |
|||||||||||
|
Networking Platforms |
||||||||||||||
|
Converged Packet Optical |
$ |
512.3 |
67.7 |
$ |
591.5 |
71.0 |
||||||||
|
Routing and Switching (1) |
64.3 |
8.5 |
67.5 |
8.1 |
||||||||||
|
Total Networking Platforms |
576.6 |
76.2 |
659.0 |
79.1 |
||||||||||
|
Platform Software and Services |
49.9 |
6.6 |
51.9 |
6.2 |
||||||||||
|
Blue Planet Automation Software and Services |
16.9 |
2.2 |
15.5 |
1.9 |
||||||||||
|
Global Services |
||||||||||||||
|
Maintenance Support and Training |
67.6 |
8.9 |
61.8 |
7.4 |
||||||||||
|
Installation and Deployment |
39.6 |
5.2 |
34.9 |
4.2 |
||||||||||
|
Consulting and Network Design |
6.5 |
0.9 |
9.8 |
1.2 |
||||||||||
|
Total Global Services |
113.7 |
15.0 |
106.5 |
12.8 |
||||||||||
|
Total |
$ |
757.1 |
100.0 |
$ |
832.9 |
100.0 |
||||||||
|
** |
Denotes % of total revenue |
|
(1) |
Ciena renamed its former “Packet Networking” product line as “Routing and Switching” effective as of the beginning of fiscal 2021. This change, affecting only the presentation of such information, was made on a prospective basis and does not impact comparability of previous financial results or the composition of this product category. |
Additional Performance Metrics for Fiscal First Quarter 2021
|
Revenue by Geographic Region |
||||||||||||||
|
Q1 FY 2021 |
Q1 FY 2020 |
|||||||||||||
|
Revenue |
% ** |
Revenue |
% ** |
|||||||||||
|
Americas |
$ |
496.6 |
65.6 |
$ |
574.0 |
68.9 |
||||||||
|
Europe, Middle East and Africa |
155.4 |
20.5 |
130.0 |
15.6 |
||||||||||
|
Asia Pacific |
105.1 |
13.9 |
128.9 |
15.5 |
||||||||||
|
Total |
$ |
757.1 |
100.0 |
$ |
832.9 |
100.0 |
||||||||
|
** Denotes % of total revenue |
||||||||||||||
- No customer represented more than 10% of revenue for the fiscal quarter
- Cash and investments totaled $1.3 billion
- Cash flow used in operations totaled $7.3 million
- Average days' sales outstanding (DSOs) were 93
- Accounts receivable, net balance was $700.0 million
- Unbilled contract asset, net balance was $85.5 million
- Inventories totaled $389.7 million, including:
- Raw materials: $123.4 million
- Work in process: $11.4 million
- Finished goods: $257.0 million
- Deferred cost of sales: $38.9 million
- Reserve for excess and obsolescence: $(41.0) million
- Product inventory turns were 3.2
- Headcount totaled 7,042
About Ciena. Ciena (NYSE: CIEN) is a networking systems, services and software company. We provide solutions that help our customers create the Adaptive Network™ in response to the constantly changing demands of their users. By delivering best-in-class networking technology through high-touch consultative relationships, we build the world’s most agile networks with automation, openness and scale. For updates on Ciena, follow us on Twitter @Ciena, LinkedIn, the Ciena Insights blog, or visit www.ciena.com.
