Use our mobile site at: m.ITbriefing.net    Follow ITbriefing.net: Follow ITbriefing on Twitter   Follow ITbriefing via Facebook   Follow ITbriefing via RSS 
Ciena Reports Fiscal Fourth Quarter 2017 and Year-End Financial Results


 Tags:   Networks                This was published: 7 Dec 2017 - 12:26 pm         Print article: Printer friendly page
          

Ciena Reports Fiscal Fourth Quarter 2017 and Year-End Financial Results - on DefenceBriefing.net

Ciena® Corporation (NYSE: CIEN), a network strategy and technology company, today announced unaudited financial results for its fiscal fourth quarter and year ended October 31, 2017.



“Our fourth quarter and fiscal 2017 results reinforce our continued ability to adapt to changing market conditions by growing revenue and expanding profitability as we outperform the industry,” said Gary B. Smith, president and CEO, Ciena. “We are confident that our long-term strategy to scale and diversify our existing business and to expand our addressable market will enable us to continue to grow and generate cash.”

For the fiscal fourth quarter 2017, Ciena reported revenue of $744.4 million as compared to $716.2 million for the fiscal fourth quarter 2016. For fiscal year 2017, Ciena reported revenue of $2.80 billion, as compared to $2.60 billion for fiscal year 2016.

Ciena's fiscal fourth quarter and fiscal year 2017 results reflect a tax benefit of $1.13 billion related to the reversal of a deferred tax asset valuation allowance. As a result, on the basis of generally accepted accounting principles (GAAP), Ciena's net income for the fiscal fourth quarter 2017 was $1.16 billion, or $7.32 per diluted common share, which compares to a GAAP net income of $36.6 million, or $0.25 per diluted common share, for the fiscal fourth quarter 2016. For fiscal year 2017, Ciena had a GAAP net income of $1.26 billion, or $7.53 per diluted common share, which compares to a GAAP net income of $72.6 million or $0.51 per diluted common share for fiscal year 2016.

Consistent with Ciena's historical non-GAAP presentation ("Prior Method"), Ciena's adjusted (non-GAAP) net income for the fiscal fourth quarter 2017 was $68.8 million, or $0.46 per diluted common share, which compares to an adjusted (non-GAAP) net income of $69.4 million, or $0.44 per diluted common share, for the fiscal fourth quarter 2016. For fiscal year 2017, Ciena's adjusted (non-GAAP) net income was $260.5 million, or $1.68 per diluted common share, as compared to an adjusted (non-GAAP) net income of $214.6 million, or $1.38 per diluted common share for fiscal year 2016.

Beginning this quarter, Ciena is changing how it calculates its adjusted (non-GAAP) provision for income taxes in accordance with the SEC's interpretive guidance on non-GAAP financial measures. In order to assist investors in understanding the change, Ciena is providing its calculations of adjusted (non-GAAP) net income under its "Prior Method" and the "New Method" in Appendix B. Under the "New Method," the Non-GAAP tax provision consists of current and deferred income tax expense commensurate with the level of adjusted (non-GAAP) income before income taxes using a current blended U.S. and foreign statutory tax rate (which was 36.5%). Under the "Prior Method," the Non-GAAP tax provision consisted of current and deferred income tax expense, primarily related to foreign income tax, which is paid using cash. This change in calculation methodology will not affect Ciena's adjusted (non-GAAP) income before income taxes, actual cash tax payments, or cash flows, but will result in significantly higher non-GAAP provisions for income taxes than our "Prior Method" presentation. However, Ciena does not expect to pay substantial cash taxes for the foreseeable future primarily due to its deferred tax asset balance. As of October 31, 2017, Ciena has deferred tax assets, net, of approximately $1.16 billion and, consequently, over the near term Ciena's cash taxes will continue to be primarily driven by the tax expense of its foreign subsidiaries, which amounts have not historically been significant.

Ciena's adjusted "New Method" (non-GAAP) net income for the fiscal fourth quarter 2017 was $48.5 million, or $0.32 per diluted common share, which compares to an adjusted (non-GAAP) net income of $48.1 million, or $0.30 per diluted common share, for the fiscal fourth quarter 2016. For fiscal year 2017, Ciena's adjusted (non-GAAP) net income was $177.7 million, or $1.14 per diluted common share, as compared to an adjusted (non-GAAP) net income of $145.3 million or $0.93 per diluted common share for fiscal year 2016.

Authorization of Share Repurchase Program

In a separate press release today, Ciena announced that its Board of Directors has authorized a program to repurchase up to $300 million of the company’s common stock through the end of fiscal 2020.

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Fourth Quarter 2017 Results

Today, Thursday, December 7, 2017, in conjunction with the issuance of this press release, Ciena has posted to the quarterly results page of the Investors section of www.ciena.com an audio recording of management commentary that provides greater context for Ciena's performance to date and its strategy, as well as certain long-term financial targets. Ciena has also posted a transcript of the recording and a related investor presentation to this page. Consistent with past practice, Ciena’s management will host a discussion with investors and financial analysts of its unaudited fiscal fourth quarter 2017 results and fiscal first quarter 2018 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 at www.ciena.com/investors.

Fiscal Fourth Quarter 2017 Performance Summary

The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to prior periods, including sequential quarterly and year over year changes. A reconciliation between the GAAP and adjusted (non-GAAP) measures contained in this release is included in Appendix A and B to this release.

 
GAAP Results (unaudited)
Q4   Q3   Q4   Period Change
FY 2017 FY 2017 FY 2016 Q-T-Q*   Y-T-Y*
Revenue $ 744.4 $ 728.7 $ 716.2 2.2 % 3.9 %
Gross margin 43.7 % 45.0 % 44.5 % (1.3 )% (0.8 )%
Operating expense $ 269.9 $ 246.1 $ 258.9 9.7 % 4.2 %
Operating margin 7.5 % 11.3 % 8.3 % (3.8 )% (0.8 )%
 
 
Non-GAAP Results (unaudited)
Q4 Q3 Q4 Period Change
FY 2017 FY 2017 FY 2016 Q-T-Q* Y-T-Y*
Revenue $ 744.4 $ 728.7 $ 716.2 2.2 % 3.9 %
Adj. gross margin 44.2 % 45.5 % 45.2 % (1.3 )% (1.0 )%
Adj. operating expense $ 240.9 $ 229.3 $ 232.4 5.1 % 3.7 %
Adj. operating margin 11.9 % 14.1 % 12.8 % (2.2 )% (0.9 )%

* Denotes % change, or in the case of margin, absolute change

 
Revenue by Segment (unaudited)
Q4 FY 2017   Q3 FY 2017   Q4 FY 2016
Revenue   % Revenue   % Revenue   %
Networking Platforms
Converged Packet Optical $ 504.7 67.8 $ 506.5 69.5 $ 488.0 68.1
Packet Networking 92.5 12.5 82.1 11.3 72.4 10.1
Optical Transport 1.7   0.2   3.7   0.5   5.8   0.8  
Total Networking Platforms 598.9 80.5 592.3 81.3 566.2 79.0
 
Software and Software-Related Services
Software Platforms 17.3 2.3 18.4 2.5 16.3 2.3
Software-Related Services 24.5   3.3   23.9   3.3   21.3   3.0  
Total Software and Software-Related Services 41.8 5.6 42.3 5.8 37.6 5.3
 
Global Services
Maintenance Support and Training 56.2 7.5 57.9 7.9 59.8 8.3
Installation and Deployment 33.5 4.5 27.4 3.8 38.6 5.4
Consulting and Network Design 14.0   1.9   8.8   1.2   14.0   2.0  
Total Global Services 103.7 13.9 94.1 12.9 112.4 15.7
             
Total $ 744.4   100.0   $ 728.7   100.0   $ 716.2   100.0  
 

Additional Performance Metrics for Fiscal Fourth Quarter 2017

 
Revenue by Geographic Region (unaudited)
Q4 FY 2017   Q3 FY 2017   Q4 FY 2016
Revenue   % Revenue   % Revenue   %
North America $ 440.5 59.2 $ 465.2 63.8 $ 463.1 64.7
Europe, Middle East and Africa 110.7 14.9 96.1 13.2 112.5 15.7
Caribbean and Latin America 43.5 5.8 51.7 7.1 46.8 6.5
Asia Pacific 149.7   20.1   115.7   15.9   93.8   13.1  
Total $ 744.4   100.0   $ 728.7   100.0   $ 716.2   100.0  
 
  • U.S. customers contributed 56% of total revenue
  • Two 10%-plus customers represented a total of 27.6% of revenue
  • Cash and investments totaled $969.4 million
  • Cash flow from operations totaled $138.5 million
  • Average days' sales outstanding (DSOs) were 75
  • Accounts receivable balance was $622.2 million
  • Inventories totaled $267.1 million, including:
    • Raw materials: $52.9 million
    • Work in process: $18.6 million
    • Finished goods: $185.5 million
    • Deferred cost of sales: $61.3 million
    • Reserve for excess and obsolescence: $(51.2) million
  • Product inventory turns were 5.3
  • Headcount totaled 5,737

Notes to Investors

Forward-Looking Statements. You are encouraged to review the Investors section of our website, where we routinely post press releases, 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 fourth quarter and fiscal 2017 results reinforce our continued ability to adapt to changing market conditions by growing revenue and expanding profitability as we outperform the industry." and "We are confident that our long-term strategy to scale and diversify our existing business and to expand our addressable market will enable us to continue to grow and generate cash."

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 and their business; changes in network spending or network strategy by large communication service providers; seasonality and the timing and size of customer orders, including 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; supply chain disruptions and the level of success relating to efforts to optimize Ciena's operations; changes in foreign currency exchange rates affecting revenue and operating expense; and the other risk factors disclosed in Ciena's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on September 6, 2017 and Ciena's Annual Report on Form 10-K 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, and measure of net income and net income per share, in each case, under our "Prior Method" and "New Method" as described above. 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. Under the "Prior Method" of calculating adjusted (non-GAAP) net income and net income per share, the Non-GAAP tax provision consists of current and deferred income tax expense, primarily related to foreign income tax, which is paid using cash. Under the "New Method" of calculating adjusted (non-GAAP) net income and net income per share, the Non-GAAP tax provision consists of current and deferred income tax expense commensurate with the level of adjusted (non-GAAP) income before income taxes using a current blended U.S. and foreign statutory tax rate (which was 36.5%). As such, the tax provision in our adjusted (non-GAAP) net income is presented as a separate and comparative reconciling item. To the extent not previously disclosed in a prior Ciena financial results press release, the Appendix A and B to this press release sets forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.

Article source - Business Wire, all right reserved. Copyright 2017
Trademarks, logos, pictures and other items may be copyright of firms mentioned in this article.




Further information:
Organisation name:    Ciena Corporation
Organisation stock symbol: NYSE:CIEN


Latest stock price data for NYSE:CIEN

 


Other related articles, tagged Networks

· Partner Communications Announces That It Expects to Connect This Week the 40,000th Subscriber to Partner TV Service   (12/17/17)
· Amazon Extends Free Shipping Deadline to Saturday, December 16   (12/16/17)
· Alaska Communications Comments on Schedule 13D Filing by Karen Singer Group   (12/16/17)
· SkyPan Calls for Recreational Drone Operators to Register with FAA   (12/15/17)
· Applied DNA Announces Selected Preliminary Unaudited Fiscal Fourth Quarter and Year End Results   (12/15/17)
· Vivitar Has Announced a Voluntary Corrective Action Program for Its Wifi Bulb Due to Misapplication of Required Safety Labels   (12/15/17)
· CORRECTING and REPLACING 2017 Top Sales Development Leaders Announced at World’s Largest Sales Development Summit   (12/15/17)
· AT&T Increases Quarterly Dividend 2 Percent   (12/15/17)
· REAN Cloud Named Tech Company of the Year by Northern Virginia Technology Council   (12/15/17)
· Comcast to Host Fourth Quarter and Full Year 2017 Earnings Conference Call   (12/15/17)

>>>More articles  >>>

Latest tech videos:



· Partner Communications Announces That It Expects to Connect This Week the 40,000th Subscriber to Partner TV Service (2017-12-17 08:46)
Partner Communications Announces That It Expects to Connect This Week the 40,000th Subscriber to Partner TV Service - on DefenceBriefing.net

Partner Communications Company Ltd. ("Partner" or the "Company") (NASDAQ and TASE: PTNR), a leading Israeli communications operator, announced today that the Company’s TV service, Partner TV, is expected to reach 40,000 subscribed households this week, an increase of approximately 10,000 connected subscribers, since the Company's previous report dated November 21, 2017 with respect to the amount of Partner TV subscribers.


· Amazon Extends Free Shipping Deadline to Saturday, December 16 (2017-12-16 03:26)
Amazon Extends Free Shipping Deadline to Saturday, December 16 - on DefenceBriefing.net

(NASDAQ-NMS: AMZN) — Amazon today extended the deadline for free shipping to December 16—all Amazon customers can choose from millions of items that are eligible for free shipping and will receive their orders before Christmas. This includes eligible orders of $25 or more shipped by Amazon, as well as free shipping offers from the millions of small business and entrepreneurs selling on Amazon.


· Alaska Communications Comments on Schedule 13D Filing by Karen Singer Group (2017-12-16 00:06)
Alaska Communications Comments on Schedule 13D Filing by Karen Singer Group - on DefenceBriefing.net

Alaska Communications (NASDAQ-NMS: ALSK) today issued the following statement in response to the Schedule 13D filed by Karen Singer and TAR Holdings LLC, a limited liability company for which Ms. Singer is the sole member:


· SkyPan Calls for Recreational Drone Operators to Register with FAA (2017-12-15 23:46)

SkyPan, a company that offers innovative aerial robotic systems that serve the needs of the architecture and real estate industries, is calling on all model aircraft operators of unmanned aircraft to register online with the FAA. In May, a U.S. Court of Appeals ruled the FAA is prohibited by law from requiring model aircraft operators to register their drones. Congress recently overturned that decision, enacting a provision in the National Defense Reauthorization Act that restores the FAA online registration rule adopted in December 2015 as of the effective date of the Act. Accordingly, model aircraft operators who have not registered with the FAA must do so promptly.


· Applied DNA Announces Selected Preliminary Unaudited Fiscal Fourth Quarter and Year End Results (2017-12-15 22:46)
Applied DNA Announces Selected Preliminary Unaudited Fiscal Fourth Quarter and Year End Results - on DefenceBriefing.net

Applied DNA Sciences, Inc. (NASDAQ-NMS: APDN; “Applied DNA”) today announced selected preliminary unaudited financial results for the full fiscal year and quarter ended September 30, 2017.


· Vivitar Has Announced a Voluntary Corrective Action Program for Its Wifi Bulb Due to Misapplication of Required Safety Labels (2017-12-15 21:06)

The Electrical Safety Authority is notifying the public that Vivitar has announced a voluntary corrective action program for the following consumer product.


· CORRECTING and REPLACING 2017 Top Sales Development Leaders Announced at World"s Largest Sales Development Summit (2017-12-15 20:26)
CORRECTING and REPLACING 2017 Top Sales Development Leaders Announced at World’s Largest Sales Development Summit - on DefenceBriefing.net

Last entry in the bulleted section should read: Jill Konrath - Owner at Jill Konrath (sted Jill Konrath - Direct of Sales at JBarrows Training).


· AT&T Increases Quarterly Dividend 2 Percent (2017-12-15 19:06)
AT&T Increases Quarterly Dividend 2 Percent - on DefenceBriefing.net

The board of directors of AT&T Inc.* (NYSE: T) has approved a 2.0% increase in the company’s quarterly dividend.


· REAN Cloud Named Tech Company of the Year by Northern Virginia Technology Council (2017-12-15 18:06)
REAN Cloud Named Tech Company of the Year by Northern Virginia Technology Council - on DefenceBriefing.net

REAN Cloud, an AWS Premier Partner and global Cloud Systems Integrator, has been named Tech Company of the Year under $50 million in revenue by the Northern Virginia Technology Council (NVTC).


· Comcast to Host Fourth Quarter and Full Year 2017 Earnings Conference Call (2017-12-15 17:26)
Comcast to Host Fourth Quarter and Full Year 2017 Earnings Conference Call - on DefenceBriefing.net

Comcast Corporation will host a conference call with the financial community to discuss financial results for the fourth quarter and full year 2017 on Wednesday, January 24, 2018 at 8:30 a.m. Eastern Time (ET). Comcast will issue a press release reporting its results earlier that morning.


· L.A. Noire: The VR Case Files Now Available for HTC Vive (2017-12-15 17:26)
L.A. Noire: The VR Case Files Now Available for HTC Vive - on DefenceBriefing.net

Rockstar Games®, a publishing label of Take-Two Interactive Software, Inc. (NASDAQ-NMS: TTWO), is proud to announce that L.A. Noire: The VR Case Files is now available for HTC Vive. Featuring seven self-contained cases from L.A. Noire rebuilt specifically for virtual reality, L.A. Noire: The VR Case Files blends breathtaking action with true detective work to deliver an unprecedented interactive experience.


· Global Fixed Line Communications Equipment Market - Growth Analysis and Forecast by Technavio (2017-12-15 16:46)
Global Fixed Line Communications Equipment Market - Growth Analysis and Forecast by Technavio - on DefenceBriefing.net

According to the latest market study released by Technavio, the global fixed line communications equipment market is expected to grow at a CAGR of more than 4% during the forecast period.


· 2017 Top Sales Development Leaders Announced at World"s Largest Sales Development Summit (2017-12-15 16:26)
2017 Top Sales Development Leaders Announced at World’s Largest Sales Development Summit - on DefenceBriefing.net

At this week's Sales Development Summit, a two-day virtual event sponsored by sales acceleration SaaS software leader InsideSales.com and sales industry thought leader Sales Hacker, the sales development community named its top 10 leaders who are forging new paths and changing the face of sales development as we know it. The first annual Sales Development Leader awards were given to:


· CMMI® Institute and The US Department of Health and Human Services Launch Framework to Address Patient Data (2017-12-15 16:06)
CMMI® Institute and The US Department of Health and Human Services Launch Framework to Address Patient Data - on DefenceBriefing.net

CMMI® Institute has announced public availability of the Patient Demographic Data Quality (PDDQ) framework, developed in partnership with the US Department of Health and Human Services’ Office of the National Controller (ONC) for Health IT. The framework was created to improve patient safety by helping organizations accurately and consistently match patient data internally as well as between organizations.




© Website copyright Incandore Limited 2012. All rights reserved. All content copyrights / trademarks remain the property of their respective owners.