Ciena Reports Q2 Revenue Drop to $910.8 Million

By Tamara Parker • Thursday, June 06 15:18 • Permanent Link

Ciena Corporation (NYSE: CIEN) has reported its unaudited financial results for the fiscal second quarter ended April 27, 2024. The company's revenue for Q2 2024 was $910.8 million, a decrease from $1.13 billion for the same period in 2023. The GAAP net loss for Q2 2024 was $(16.8) million, or $(0.12) per diluted common share, in contrast to a GAAP net income of $57.7 million, or $0.38 per diluted common share, in Q2 2023.

On a non-GAAP basis, Ciena's adjusted net income for Q2 2024 was $39.4 million, or $0.27 per diluted common share, compared to an adjusted net income of $110.4 million, or $0.74 per diluted common share, for Q2 2023.

The company repurchased approximately 1.1 million shares of common stock for an aggregate price of $57.0 million during the quarter.

Reviewing the performance metrics, the company's revenue by segment for Q2 2024 was as follows: Networking Platforms: $676.3 million, down from $914.9 million in Q2 2023 Platform Software and Services: $85.4 million, up from $69.4 million in Q2 2023 Blue Planet Automation Software and Services: $14.4 million, down from $20.6 million in Q2 2023 Global Services: $134.7 million, up from $127.8 million in Q2 2023

In terms of revenue by geographic region for Q2 2024: Americas: $662.9 million, down from $794.4 million in Q2 2023 Europe, Middle East, and Africa: $155.8 million, down from $173.4 million in Q2 2023 * Asia Pacific: $92.1 million, down from $164.9 million in Q2 2023

Other notable financial metrics for Q2 2024 include: Cash and investments totaled $1.42 billion Cash flow from operations totaled $58.5 million Average days' sales outstanding (DSOs) were 98.2 Inventories totaled $1.02 billion, with product inventory turns at 1.6 * Headcount totaled 8,627

Ciena's adjusted gross margin for Q2 2024 was 43.5%, slightly lower than the 43.7% recorded in Q2 2023. Adjusted operating margin for Q2 2024 was 6.8%, down from 13.8% in Q2 2023. Adjusted EBITDA for Q2 2024 was $85.8 million, a decrease from $180.6 million in Q2 2023.

These financial results indicate a mixed performance for Ciena Corporation in the fiscal second quarter of 2024, with declines in revenue and margins compared to the same period in 2023. Following these announcements, the company's shares moved 1.2%, and are now trading at a price of $48.81. For the full picture, make sure to review Ciena's 8-K report.

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