We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ciena's (CIEN) Q2 Earnings Miss Estimates, Revenues Beat
Read MoreHide Full Article
Ciena Corporation (CIEN - Free Report) reported mixed financial results for the second-quarter fiscal 2018 (ended Apr 30, 2018).
Net Income
On a GAAP basis, net income for the reported quarter came in at $13.9 million or 9 cents per share compared with $38 million or 25 cents per share in the year-ago quarter. The year-over-year decrease was primarily due to higher cost of goods sold.
Non-GAAP net income was $33.8 million or 23 cents per share compared with $48.2 million or 30 cents per share in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate by 7 cents.
Revenues
Quarterly total revenues increased 3.3% year over year to $730 million, driven by continued growth in APAC (Asia Pacific) service providers as well as global webscale customers. Notably, India alone delivered $79 million in quarterly revenues, up 20% year over year.
The top line surpassed the Zacks Consensus Estimate of $729 million.
Ciena Corporation Price, Consensus and EPS Surprise
Gross margin was 40.2% compared with 45% in the year-ago quarter, impacted by several new, international service provider deployments.
Operating expenses were $261.2 million compared with $260.4 million in the year-earlier quarter. Operating margin was 4.4% compared with 8.2% in the prior-year quarter.
Adjusted EBITDA was $77.1 million, down from $107.6 million in the year-earlier quarter owing to higher cost of goods sold and operating expenses.
Segmental Performance
Revenues from Networking Platforms increased 3.5% year over year to $591.7 million. Software and Software-Related Services revenues were $38.7 million compared with $37.7 million in the prior-year quarter. Revenues from Global Services were $99.6 million compared with $97.8 million in the year-earlier quarter.
Acquisition
During the quarter, Ciena inked a definitive agreement to acquire Packet Design, LLC, a provider of network performance management software focused on Layer 3 network optimization, topology and route analytics, for an undisclosed amount.
The buyout is expected to accelerate Ciena’s software strategy and contribute toward its long-term financial goal of growing its Blue Planet and associated services business by approximately 14-16% annually over the next three years.
Share Repurchases
During the quarter, Ciena repurchased approximately 1.4 million shares of common stock for an aggregate amount of $33.4 million.
Cash Flow
During the quarter, Ciena generated $37.4 million as cash from operating activities while its free cash flow amounted to $31.1 million. Cash flow for the first six months of 2018 improved to $73.1 million from $45.7 million in the prior-year period.
Liquidity
As of Apr 30, 2018, Ciena had $652.1 million of cash and cash equivalents and $585.5 million of net long-term debt.
The company ended the quarter with approximately $980 million in cash and investments.
Zacks Rank & Stocks to Consider
Ciena currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader industry are Motorola Solutions, Inc. (MSI - Free Report) , BlackBerry Limited (BB - Free Report) and Ubiquiti Networks, Inc. . While Motorola and BlackBerry sport a Zacks Rank #1 (Strong Buy), Ubiquiti carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Motorola has an expected long-term earnings growth rate of 8%. It beat earnings estimates in each of the trailing four quarters, the average being 12.1%.
BlackBerry has an expected long-term earnings growth rate of 18.6%. It has beaten earnings estimates twice in the trailing four quarters, the average being a positive 500%.
Ubiquiti has an expected long-term earnings growth rate of 18.6%. It surpassed earnings estimates thrice in the trailing four quarters, the average being a positive 8.9%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Ciena's (CIEN) Q2 Earnings Miss Estimates, Revenues Beat
Ciena Corporation (CIEN - Free Report) reported mixed financial results for the second-quarter fiscal 2018 (ended Apr 30, 2018).
Net Income
On a GAAP basis, net income for the reported quarter came in at $13.9 million or 9 cents per share compared with $38 million or 25 cents per share in the year-ago quarter. The year-over-year decrease was primarily due to higher cost of goods sold.
Non-GAAP net income was $33.8 million or 23 cents per share compared with $48.2 million or 30 cents per share in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate by 7 cents.
Revenues
Quarterly total revenues increased 3.3% year over year to $730 million, driven by continued growth in APAC (Asia Pacific) service providers as well as global webscale customers. Notably, India alone delivered $79 million in quarterly revenues, up 20% year over year.
The top line surpassed the Zacks Consensus Estimate of $729 million.
Ciena Corporation Price, Consensus and EPS Surprise
Ciena Corporation Price, Consensus and EPS Surprise | Ciena Corporation Quote
Operating Metrics
Gross margin was 40.2% compared with 45% in the year-ago quarter, impacted by several new, international service provider deployments.
Operating expenses were $261.2 million compared with $260.4 million in the year-earlier quarter. Operating margin was 4.4% compared with 8.2% in the prior-year quarter.
Adjusted EBITDA was $77.1 million, down from $107.6 million in the year-earlier quarter owing to higher cost of goods sold and operating expenses.
Segmental Performance
Revenues from Networking Platforms increased 3.5% year over year to $591.7 million. Software and Software-Related Services revenues were $38.7 million compared with $37.7 million in the prior-year quarter. Revenues from Global Services were $99.6 million compared with $97.8 million in the year-earlier quarter.
Acquisition
During the quarter, Ciena inked a definitive agreement to acquire Packet Design, LLC, a provider of network performance management software focused on Layer 3 network optimization, topology and route analytics, for an undisclosed amount.
The buyout is expected to accelerate Ciena’s software strategy and contribute toward its long-term financial goal of growing its Blue Planet and associated services business by approximately 14-16% annually over the next three years.
Share Repurchases
During the quarter, Ciena repurchased approximately 1.4 million shares of common stock for an aggregate amount of $33.4 million.
Cash Flow
During the quarter, Ciena generated $37.4 million as cash from operating activities while its free cash flow amounted to $31.1 million. Cash flow for the first six months of 2018 improved to $73.1 million from $45.7 million in the prior-year period.
Liquidity
As of Apr 30, 2018, Ciena had $652.1 million of cash and cash equivalents and $585.5 million of net long-term debt.
The company ended the quarter with approximately $980 million in cash and investments.
Zacks Rank & Stocks to Consider
Ciena currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader industry are Motorola Solutions, Inc. (MSI - Free Report) , BlackBerry Limited (BB - Free Report) and Ubiquiti Networks, Inc. . While Motorola and BlackBerry sport a Zacks Rank #1 (Strong Buy), Ubiquiti carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Motorola has an expected long-term earnings growth rate of 8%. It beat earnings estimates in each of the trailing four quarters, the average being 12.1%.
BlackBerry has an expected long-term earnings growth rate of 18.6%. It has beaten earnings estimates twice in the trailing four quarters, the average being a positive 500%.
Ubiquiti has an expected long-term earnings growth rate of 18.6%. It surpassed earnings estimates thrice in the trailing four quarters, the average being a positive 8.9%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>