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Ciena (CIEN) Q1 Earnings & Revenues Top Estimates, Up Y/Y
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Ciena Corporation (CIEN - Free Report) reported first-quarter fiscal 2023 (ended Jan 28) results, with adjusted earnings of 64 cents per share beating the Zacks Consensus Estimate of 36 cents. Earnings improved 36.2% year over year.
Quarterly total revenues were up 25% year over year to $1,056.5 million owing to improvement in supply-chain issues and strong demand. The top line surpassed the Zacks Consensus Estimate by 10.1%.
Non-telco customers contributed nearly 40% to revenues in the reported quarter. Two customers represented a total of 25.7% of revenues in the fiscal first quarter.
Ciena Corporation Price, Consensus and EPS Surprise
Total revenues in Networking Platforms (81% of total revenues) increased 36.5% year over year to $855.1 million.
Platform Software and Services’ revenues (6.9% of total revenues) totaled $73.4 million, up 0.7% from the prior-year quarter’s levels.
Blue Planet Automation Software and Services’ revenues (1.4% of total revenues) declined 27% to $15.4 million.
Total revenues in Global Services (10.7% of total revenues) were $112.6 million, down 9% year over year.
Region-wise, revenues in the Americas were $765.1 million, up 28.6% year over year. Revenues in Europe, the Middle East and Africa were $152.8 million, up 1.3% from the prior-year quarter’s levels. Revenues in the Asia Pacific totaled $138.6 million, up 40.7% from the prior-year quarter figure.
Other Details
Non-GAAP adjusted gross margin was 43.7% compared with 46.2% in the year-ago quarter. Adjusted operating expenses were $329.3 million, up 13.6% from the prior-year quarter’s levels.
Non-GAAP adjusted operating margin came in at 12.6% compared with 11.8% in the prior-year quarter. Non-GAAP adjusted EBITDA increased 25.4% year over year to $155.1 million.
Cash Flow & Liquidity
For the quarter ended Jan 28, Ciena’s net cash used in operating activities was $265.6 million compared with $54.4 million in the prior-year quarter.
As of Jan 28, the company had $1.2 billion in cash and investments and $1,547.5 million of net long-term debt.
Guidance
For the second quarter of fiscal 2023, the company expects revenues in the range of $1,035-$1,115 million. The adjusted gross margin is estimated to be low 40%. Adjusted operating expenses are estimated to be $335 million.
For fiscal 2023, the company expects revenue growth in the range of 20-22%, up from the earlier guided range of 16-18%. Adjusted gross margin is estimated to be between 42% and 44%. Adjusted operating expenses are estimated to be $330 million per quarter in the remaining quarters.
The outlook is driven by a strong demand and signs of supply-chain improvement.
The company plans to repurchase shares worth $250 million in fiscal 2023. Ciena repurchased $500 million worth of shares in fiscal 2022.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.79 per share, rising 11.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 18.4% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 66.4% in the past year.
The Zacks Consensus Estimate for Pegasystem’s 2023 earnings is pegged at $1.31 per share, rising 96% in the past 60 days.
Pegasystem’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of PEGA have declined 41.1% in the past year.
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Ciena (CIEN) Q1 Earnings & Revenues Top Estimates, Up Y/Y
Ciena Corporation (CIEN - Free Report) reported first-quarter fiscal 2023 (ended Jan 28) results, with adjusted earnings of 64 cents per share beating the Zacks Consensus Estimate of 36 cents. Earnings improved 36.2% year over year.
Quarterly total revenues were up 25% year over year to $1,056.5 million owing to improvement in supply-chain issues and strong demand. The top line surpassed the Zacks Consensus Estimate by 10.1%.
Non-telco customers contributed nearly 40% to revenues in the reported quarter. Two customers represented a total of 25.7% of revenues in the fiscal first quarter.
Ciena Corporation Price, Consensus and EPS Surprise
Ciena Corporation price-consensus-eps-surprise-chart | Ciena Corporation Quote
Segment Results
Total revenues in Networking Platforms (81% of total revenues) increased 36.5% year over year to $855.1 million.
Platform Software and Services’ revenues (6.9% of total revenues) totaled $73.4 million, up 0.7% from the prior-year quarter’s levels.
Blue Planet Automation Software and Services’ revenues (1.4% of total revenues) declined 27% to $15.4 million.
Total revenues in Global Services (10.7% of total revenues) were $112.6 million, down 9% year over year.
Region-wise, revenues in the Americas were $765.1 million, up 28.6% year over year. Revenues in Europe, the Middle East and Africa were $152.8 million, up 1.3% from the prior-year quarter’s levels. Revenues in the Asia Pacific totaled $138.6 million, up 40.7% from the prior-year quarter figure.
Other Details
Non-GAAP adjusted gross margin was 43.7% compared with 46.2% in the year-ago quarter. Adjusted operating expenses were $329.3 million, up 13.6% from the prior-year quarter’s levels.
Non-GAAP adjusted operating margin came in at 12.6% compared with 11.8% in the prior-year quarter. Non-GAAP adjusted EBITDA increased 25.4% year over year to $155.1 million.
Cash Flow & Liquidity
For the quarter ended Jan 28, Ciena’s net cash used in operating activities was $265.6 million compared with $54.4 million in the prior-year quarter.
As of Jan 28, the company had $1.2 billion in cash and investments and $1,547.5 million of net long-term debt.
Guidance
For the second quarter of fiscal 2023, the company expects revenues in the range of $1,035-$1,115 million. The adjusted gross margin is estimated to be low 40%. Adjusted operating expenses are estimated to be $335 million.
For fiscal 2023, the company expects revenue growth in the range of 20-22%, up from the earlier guided range of 16-18%. Adjusted gross margin is estimated to be between 42% and 44%. Adjusted operating expenses are estimated to be $330 million per quarter in the remaining quarters.
The outlook is driven by a strong demand and signs of supply-chain improvement.
The company plans to repurchase shares worth $250 million in fiscal 2023. Ciena repurchased $500 million worth of shares in fiscal 2022.
Zacks Rank & Stocks to Consider
At present, Ciena carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Perion Network (PERI - Free Report) and Pegasystems (PEGA - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.79 per share, rising 11.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 18.4% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 66.4% in the past year.
The Zacks Consensus Estimate for Pegasystem’s 2023 earnings is pegged at $1.31 per share, rising 96% in the past 60 days.
Pegasystem’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of PEGA have declined 41.1% in the past year.