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Ciena Reports Fiscal Second Quarter 2024 Financial Results

Ciena Reports Fiscal Second Quarter 2024 Financial Results

Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal second quarter ended April 27, 2024.

  • Q2 Revenue: $910.8 million
  • Q2 Net Income (Loss) per Share: $(0.12) GAAP; $0.27 adjusted (non-GAAP)
  • Share Repurchases: Repurchased approximately 1.1 million shares of common stock for an aggregate price of $57.0 million during the quarter

"Our fiscal second quarter performance underscores the strength in our business amid a challenging near-term environment as service providers continue to work through existing inventory," said Gary Smith, president and CEO, Ciena. “With continued robust growth in bandwidth demand, we remain focused on extending our leadership in optical as a foundation for expanding our addressable market.”

For the fiscal second quarter 2024, Ciena reported revenue of $910.8 million as compared to $1.13 billion for the fiscal second quarter 2023.

Ciena's GAAP net loss for the fiscal second quarter 2024 was $(16.8) million, or $(0.12) per diluted common share, which compares to a GAAP net income of $57.7 million, or $0.38 per diluted common share, for the fiscal second quarter 2023.

Ciena's adjusted (non-GAAP) net income for the fiscal second quarter 2024 was $39.4 million, or $0.27 per diluted common share, which compares to an adjusted (non-GAAP) net income of $110.4 million, or $0.74 per diluted common share, for the fiscal second quarter 2023.

Fiscal Second Quarter 2024 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 (unaudited)

 

 

Q2

 

Q2

 

Period Change

 

 

FY 2024

 

FY 2023

 

Y-T-Y*

Revenue

 

$

910.8

 

 

$

1,132.7

 

 

(19.6

)%

Gross margin

 

 

42.7

%

 

 

43.1

%

 

(0.4

)%

Operating expense

 

$

392.6

 

 

$

384.9

 

 

2.0

%

Operating margin

 

 

(0.4

)%

 

 

9.1

%

 

(9.5

)%

 

 

Non-GAAP Results (unaudited)

 

 

Q2

 

Q2

 

Period Change

 

 

FY 2024

 

FY 2023

 

Y-T-Y*

Revenue

 

$

910.8

 

 

$

1,132.7

 

 

(19.6

)%

Adj. gross margin

 

 

43.5

%

 

 

43.7

%

 

(0.2

)%

Adj. operating expense

 

$

333.9

 

 

$

338.1

 

 

(1.2

)%

Adj. operating margin

 

 

6.8

%

 

 

13.8

%

 

(7.0

)%

Adj. EBITDA

 

$

85.8

 

 

$

180.6

 

 

(52.5

)%

 

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

 

 

Revenue by Segment (unaudited)

 

 

Q2 FY 2024

 

Q2 FY 2023

 

 

Revenue

 

%**

 

Revenue

 

%**

Networking Platforms

 

 

 

 

 

 

 

 

Optical Networking

 

$

560.2

 

61.5

 

$

784.5

 

69.3

Routing and Switching

 

 

116.1

 

12.7

 

 

130.4

 

11.5

Total Networking Platforms

 

 

676.3

 

74.2

 

 

914.9

 

80.8

 

 

 

 

 

 

 

 

 

Platform Software and Services

 

 

85.4

 

9.4

 

 

69.4

 

6.1

 

 

 

 

 

 

 

 

 

Blue Planet Automation Software and Services

 

 

14.4

 

1.6

 

 

20.6

 

1.8

 

 

 

 

 

 

 

 

 

Global Services

 

 

 

 

 

 

 

 

Maintenance Support and Training

 

 

77.4

 

8.5

 

 

73.2

 

6.5

Installation and Deployment

 

 

43.8

 

4.8

 

 

39.5

 

3.5

Consulting and Network Design

 

 

13.5

 

1.5

 

 

15.1

 

1.3

Total Global Services

 

 

134.7

 

14.8

 

 

127.8

 

11.3

 

 

 

 

 

 

 

 

 

Total

 

$

910.8

 

100.0

 

$

1,132.7

 

100.0

 

** Denotes % of total revenue

Additional Performance Metrics for Fiscal Second Quarter 2024

 

 

Revenue by Geographic Region (unaudited)

 

 

Q2 FY 2024

 

Q2 FY 2023

 

 

Revenue

 

% **

 

Revenue

 

% **

Americas

 

$

662.9

 

72.8

 

$

794.4

 

70.1

Europe, Middle East and Africa

 

 

155.8

 

17.1

 

 

173.4

 

15.3

Asia Pacific

 

 

92.1

 

10.1

 

 

164.9

 

14.6

Total

 

$

910.8

 

100.0

 

$

1,132.7

 

100.0

 

** Denotes % of total revenue

  • One 10%-plus customer represented a total 13.8% of revenue
  • Cash and investments totaled $1.42 billion
  • Cash flow from operations totaled $58.5 million
  • Average days' sales outstanding (DSOs) were 98
  • Accounts receivable, net balance was $840.1 million
  • Unbilled contract asset, net balance was $151.9 million
  • Inventories totaled $1.02 billion, including:
    • Raw materials: $638.9 million
    • Work in process: $68.2 million
    • Finished goods: $331.3 million
    • Deferred cost of sales: $43.7 million
    • Reserve for excess and obsolescence: $(59.5) million
  • Product inventory turns were 1.6
  • Headcount totaled 8,627

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Second Quarter 2024 Results

Today, Thursday, June 6, 2024, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website certain related supporting materials for its unaudited fiscal second quarter 2024 results.

Ciena's management will also host a discussion today with investors and financial analysts that will include the Company's 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.

Notes to Investors

Forward-Looking Statements. You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission ("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 fiscal second quarter performance underscores the strength in our business amid a challenging near-term environment as service providers continue to work through existing inventory. With continued robust growth in bandwidth demand, we remain focused on extending our leadership in optical as a foundation for expanding our addressable market.”

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, their spending and their businesses and markets; our ability to execute our business and growth strategies; the impact of macroeconomic conditions and global supply chain constraints or disruptions including increased supply costs and lead times; the impact of the introduction of new technologies by us or our competitors; seasonality and the timing and size of customer orders, their delivery dates and 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; changes in foreign currency exchange rates; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical tensions or events, including but not limited to the ongoing conflicts between Ukraine and Russia, and Israel and Hamas, and public health emergencies or epidemics, including the COVID-19 pandemic; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K filed with the SEC on December 15, 2023 and included in its Quarterly Report on Form 10-Q for the second quarter of fiscal 2024 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, earnings before interest, tax, depreciation and amortization (EBITDA), Adjusted EBITDA, and measures of net income and net income per share. 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. To the extent not previously disclosed in a prior Ciena financial results press release, Appendices A and B to this press release set forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.

About Ciena. Ciena (NYSE: CIEN) is a global leader in networking systems, services, and software. We build the most adaptive networks in the industry, enabling customers to anticipate and meet ever-increasing digital demands. For three-plus decades, Ciena has brought our humanity to our relentless pursuit of innovation. Prioritizing collaborative relationships with our customers, partners, and communities, we create flexible, open, and sustainable networks that better serve all users—today and into the future. For updates on Ciena, follow us on LinkedIn, X, the Ciena Insights blog, or visit www.ciena.com.

CIENA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

Quarter Ended

 

Year Ended

 

April 27,

 

April 29,

 

April 27,

 

April 29,

 

2024

 

2023

 

2024

 

2023

Revenue:

 

 

 

 

 

 

 

Products

$

701,316

 

 

$

935,330

 

 

$

1,537,093

 

 

$

1,813,045

 

Services

 

209,510

 

 

 

197,325

 

 

 

411,442

 

 

 

376,131

 

Total revenue

 

910,826

 

 

 

1,132,655

 

 

 

1,948,535

 

 

 

2,189,176

 

Cost of goods sold:

 

 

 

 

 

 

 

Products

 

415,732

 

 

 

541,883

 

 

 

882,204

 

 

 

1,042,220

 

Services

 

106,433

 

 

 

103,089

 

 

 

210,708

 

 

 

203,327

 

Total cost of goods sold

 

522,165

 

 

 

644,972

 

 

 

1,092,912

 

 

 

1,245,547

 

Gross profit

 

388,661

 

 

 

487,683

 

 

 

855,623

 

 

 

943,629

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

195,380

 

 

 

189,993

 

 

 

382,649

 

 

 

371,723

 

Selling and marketing

 

124,071

 

 

 

125,083

 

 

 

252,229

 

 

 

248,890

 

General and administrative

 

49,573

 

 

 

50,939

 

 

 

104,256

 

 

 

101,835

 

Significant asset impairments and restructuring costs

 

15,655

 

 

 

8,153

 

 

 

20,626

 

 

 

12,451

 

Amortization of intangible assets

 

7,947

 

 

 

9,845

 

 

 

15,199

 

 

 

17,286

 

Acquisition and integration costs

 

 

 

 

857

 

 

 

 

 

 

3,415

 

Total operating expenses

 

392,626

 

 

 

384,870

 

 

 

774,959

 

 

 

755,600

 

Income (loss) from operations

 

(3,965

)

 

 

102,813

 

 

 

80,664

 

 

 

188,029

 

Interest and other income, net

 

11,797

 

 

 

8,551

 

 

 

22,447

 

 

 

40,524

 

Interest expense

 

(23,861

)

 

 

(23,889

)

 

 

(47,637

)

 

 

(39,759

)

Income (loss) before income taxes

 

(16,029

)

 

 

87,475

 

 

 

55,474

 

 

 

188,794

 

Provision for income taxes

 

820

 

 

 

29,821

 

 

 

22,776

 

 

 

54,899

 

Net income (loss)

$

(16,849

)

 

$

57,654

 

 

$

32,698

 

 

$

133,895

 

 

 

 

 

 

 

 

 

Net Income (Loss) per Common Share

 

 

 

 

 

 

 

Basic net income (loss) per common share

$

(0.12

)

 

$

0.39

 

 

$

0.23

 

 

$

0.90

 

Diluted net income (loss) per potential common share

$

(0.12

)

 

$

0.38

 

 

$

0.22

 

 

$

0.89

 

 

 

 

 

 

 

 

 

Weighted average basic common shares outstanding

 

144,914

 

 

 

149,616

 

 

 

145,104

 

 

 

149,351

 

Weighted average dilutive potential common shares outstanding 1

 

144,914

 

 

 

150,147

 

 

 

146,059

 

 

 

149,852

 

1 Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 1.0 million for the first six months of fiscal 2024, and (ii) 0.5 million for both the second quarter and first six months of fiscal 2023.

CIENA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

 

 

April 27,
2024

 

October 28,
2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,091,289

 

 

$

1,010,618

 

Short-term investments

 

165,620

 

 

 

104,753

 

Accounts receivable, net

 

840,131

 

 

 

1,003,876

 

Inventories, net

 

1,022,615

 

 

 

1,050,838

 

Prepaid expenses and other

 

421,692

 

 

 

405,694

 

Total current assets

 

3,541,347

 

 

 

3,575,779

 

Long-term investments

 

165,960

 

 

 

134,278

 

Equipment, building, furniture and fixtures, net

 

274,353

 

 

 

280,147

 

Operating lease right-of-use assets

 

30,210

 

 

 

35,140

 

Goodwill

 

444,917

 

 

 

444,765

 

Other intangible assets, net

 

184,941

 

 

 

205,627

 

Deferred tax asset, net

 

821,879

 

 

 

809,306

 

Other long-term assets

 

151,196

 

 

 

116,453

 

Total assets

$

5,614,803

 

 

$

5,601,495

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

332,106

 

 

$

317,828

 

Accrued liabilities and other short-term obligations

 

355,258

 

 

 

431,419

 

Deferred revenue

 

196,989

 

 

 

154,419

 

Operating lease liabilities

 

16,138

 

 

 

16,655

 

Current portion of long-term debt

 

11,700

 

 

 

11,700

 

Total current liabilities

 

912,191

 

 

 

932,021

 

Long-term deferred revenue

 

80,365

 

 

 

74,041

 

Other long-term obligations

 

172,839

 

 

 

170,407

 

Long-term operating lease liabilities

 

28,513

 

 

 

33,259

 

Long-term debt, net

 

1,540,639

 

 

 

1,543,406

 

Total liabilities

 

2,734,547

 

 

 

2,753,134

 

Stockholders’ equity:

 

 

 

Preferred stock – par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding

 

 

 

 

 

Common stock – par value $0.01; 290,000,000 shares authorized; 144,199,201 and 144,829,938 shares issued and outstanding

 

1,442

 

 

 

1,448

 

Additional paid-in capital

 

6,245,248

 

 

 

6,262,083

 

Accumulated other comprehensive loss

 

(21,729

)

 

 

(37,767

)

Accumulated deficit

 

(3,344,705

)

 

 

(3,377,403

)

Total stockholders’ equity

 

2,880,256

 

 

 

2,848,361

 

Total liabilities and stockholders’ equity

$

5,614,803

 

 

$

5,601,495

 

 

 

 

 

CIENA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

 

 

Six Months Ended

 

April 27,

 

April 29,

 

2024

 

2023

Cash flows provided by (used in) operating activities:

 

 

 

Net income

$

32,698

 

 

$

133,895

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements

 

46,016

 

 

 

45,903

 

Share-based compensation expense

 

78,075

 

 

 

62,372

 

Amortization of intangible assets

 

20,726

 

 

 

23,600

 

Deferred taxes

 

(8,946

)

 

 

(2,134

)

Provision for inventory excess and obsolescence

 

23,152

 

 

 

12,691

 

Provision for warranty

 

8,629

 

 

 

13,577

 

Gain on equity investments, net

 

 

 

 

(26,455

)

Other

 

11,509

 

 

 

11,331

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

 

155,107

 

 

 

(116,914

)

Inventories

 

5,346

 

 

 

(162,143

)

Prepaid expenses and other

 

(37,441

)

 

 

(41,511

)

Operating lease right-of-use assets

 

6,111

 

 

 

7,644

 

Accounts payable, accruals and other obligations

 

(56,064

)

 

 

(55,754

)

Deferred revenue

 

48,641

 

 

 

68,818

 

Short and long-term operating lease liabilities

 

(9,010

)

 

 

(10,748

)

Net cash provided by (used in) operating activities

 

324,549

 

 

 

(35,828

)

Cash flows used in investing activities:

 

 

 

Payments for equipment, furniture, fixtures and intellectual property

 

(33,500

)

 

 

(58,034

)

Purchases of investments

 

(171,131

)

 

 

(106,245

)

Proceeds from sales and maturities of investments

 

83,013

 

 

 

123,251

 

Settlement of foreign currency forward contracts, net

 

(828

)

 

 

(6,194

)

Purchase of equity investments

 

(16,256

)

 

 

 

Acquisition of business, net of cash acquired

 

 

 

 

(230,048

)

Net cash used in investing activities

 

(138,702

)

 

 

(277,270

)

Cash flows provided by (used in) financing activities:

 

 

 

Proceeds from issuance of term loan, net

 

 

 

 

497,500

 

Payment of long term debt

 

(2,925

)

 

 

(3,465

)

Payment of debt issuance costs

 

(2,554

)

 

 

(5,230

)

Payment of finance lease obligations

 

(1,989

)

 

 

(1,864

)

Shares repurchased for tax withholdings on vesting of stock unit awards

 

(22,428

)

 

 

(22,022

)

Repurchases of common stock - repurchase program, net

 

(94,817

)

 

 

 

Proceeds from issuance of common stock

 

16,876

 

 

 

14,656

 

Net cash provided by (used in) financing activities

 

(107,837

)

 

 

479,575

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

2,659

 

 

 

6,867

 

Net increase in cash, cash equivalents and restricted cash

 

80,669

 

 

 

173,344

 

Cash, cash equivalents and restricted cash at beginning of period

 

1,010,786

 

 

 

994,378

 

Cash, cash equivalents and restricted cash at end of period

$

1,091,455

 

 

$

1,167,722

 

Supplemental disclosure of cash flow information

 

 

 

Cash paid during the period for interest, net

$

45,782

 

 

$

37,514

 

Cash paid during the period for income taxes, net

$

29,193

 

 

$

24,218

 

Operating lease payments

$

9,964

 

 

$

11,689

 

Non-cash investing and financing activities

 

 

 

Purchase of equipment in accounts payable

$

6,365

 

 

$

4,618

 

Repurchase of common stock in accrued liabilities from repurchase program

$

3,859

 

 

$

 

Operating right-of-use assets subject to lease liability

$

3,639

 

 

$

6,177

 

Gain on equity investments, net

$

 

 

$

26,455

 

APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements

(in thousands, except per share data) (unaudited)

 

 

 

 

 

 

 

Quarter Ended

 

 

April 27,

 

April 29,

 

 

2024

 

2023

Gross Profit Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP gross profit

 

$

388,661

 

 

$

487,683

 

Share-based compensation-products

 

 

1,760

 

 

 

1,155

 

Share-based compensation-services

 

 

3,344

 

 

 

2,659

 

Amortization of intangible assets

 

 

2,763

 

 

 

3,431

 

Total adjustments related to gross profit

 

 

7,867

 

 

 

7,245

 

Adjusted (non-GAAP) gross profit

 

$

396,528

 

 

$

494,928

 

Adjusted (non-GAAP) gross profit percentage

 

 

43.5

%

 

 

43.7

%

 

 

 

 

 

Operating Expense Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP operating expense

 

$

392,626

 

 

$

384,870

 

Share-based compensation-research and development

 

 

14,066

 

 

 

10,731

 

Share-based compensation-sales and marketing

 

 

11,166

 

 

 

8,755

 

Share-based compensation-general and administrative

 

 

9,875

 

 

 

8,468

 

Significant asset impairments and restructuring costs

 

 

15,655

 

 

 

8,153

 

Amortization of intangible assets

 

 

7,947

 

 

 

9,845

 

Acquisition and integration costs

 

 

 

 

 

857

 

Total adjustments related to operating expense

 

 

58,709

 

 

 

46,809

 

Adjusted (non-GAAP) operating expense

 

$

333,917

 

 

$

338,061

 

 

 

 

 

 

Income (Loss) from Operations Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP income (loss) from operations

 

$

(3,965

)

 

$

102,813

 

Total adjustments related to gross profit

 

 

7,867

 

 

 

7,245

 

Total adjustments related to operating expense

 

 

58,709

 

 

 

46,809

 

Total adjustments related to income (loss) from operations

 

 

66,576

 

 

 

54,054

 

Adjusted (non-GAAP) income from operations

 

$

62,611

 

 

$

156,867

 

Adjusted (non-GAAP) operating margin percentage

 

 

6.8

%

 

 

13.8

%

 

 

 

 

 

Net Income (Loss) Reconciliation (GAAP/non-GAAP)

 

 

 

 

GAAP net income (loss)

 

$

(16,849

)

 

$

57,654

 

Exclude GAAP provision for income taxes

 

 

820

 

 

 

29,821

 

Income (loss) before income taxes

 

 

(16,029

)

 

 

87,475

 

Total adjustments related to income from operations

 

 

66,576

 

 

 

54,054

 

Adjusted income before income taxes

 

 

50,547

 

 

 

141,529

 

Non-GAAP tax provision on adjusted income before income taxes

 

 

11,120

 

 

 

31,136

 

Adjusted (non-GAAP) net income

 

$

39,427

 

 

$

110,393

 

 

 

 

 

 

Weighted average basic common shares outstanding

 

 

144,914

 

 

 

149,616

 

Weighted average dilutive potential common shares outstanding 1

 

 

146,268

 

 

 

150,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) per Common Share

 

 

 

 

GAAP diluted net income (loss) per potential common share

 

$

(0.12

)

 

$

0.38

 

Adjusted (non-GAAP) diluted net income per potential common share

 

$

0.27

 

 

$

0.74

 

1 Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 1.4 million and 1.0 million for the second quarter and first six months of fiscal 2024, respectively; and (ii) 0.5 million for both the second quarter and first six months of fiscal 2023.

APPENDIX B - Calculation of EBITDA and Adjusted EBITDA

(in thousands) (unaudited)

 

 

 

 

 

 

 

Quarter Ended

 

 

April 27,

 

April 29,

 

 

2024

 

2023

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)

 

 

 

 

Net income (loss) (GAAP)

 

$

(16,849

)

 

$

57,654

Add: Interest expense

 

 

23,861

 

 

 

23,889

Less: Interest and other income, net

 

 

11,797

 

 

 

8,551

Add: Provision for income taxes

 

 

820

 

 

 

29,821

Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements

 

 

23,208

 

 

 

23,695

Add: Amortization of intangible assets

 

 

10,710

 

 

 

13,275

EBITDA

 

$

29,953

 

 

$

139,783

Add: Share-based compensation expense

 

 

40,211

 

 

 

31,768

Add: Significant asset impairments and restructuring costs

 

 

15,655

 

 

 

8,153

Add: Acquisition and integration costs

 

 

 

 

 

857

Adjusted EBITDA

 

$

85,819

 

 

$

180,561

* * *

The adjusted (non-GAAP) measures above and their reconciliation to Ciena's GAAP results for the periods presented reflect adjustments relating to the following items:

  • Share-based compensation - a non-cash expense incurred in accordance with share-based compensation accounting guidance.
  • Significant asset impairments and restructuring costs - costs incurred as a result of restructuring activities taken to align resources with perceived market opportunities, the redesign of business processes and restructuring certain real estate facilities.
  • Amortization of intangible assets - a non-cash expense arising from the acquisition of intangible assets, principally developed technologies and customer-related intangibles, that Ciena is required to amortize over an expected useful life.
  • Acquisition and integration costs - primarily consist of financial, legal and accounting advisors' costs and employment-related costs related to Ciena's acquisitions in fiscal 2023.
  • Non-GAAP tax provision - consists of current and deferred income tax expense commensurate with the level of adjusted income before income taxes and utilizes a current, blended U.S. and foreign statutory annual tax rate of 22.0% for both the fiscal second quarter 2024 and the fiscal second quarter 2023. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy.

 

Press Contact:
Jamie Moody
Ciena Corporation
+1 (410) 694-5761
pr@ciena.com

Investor Contact:
Gregg Lampf
Ciena Corporation
+1 (410) 694-5700
ir@ciena.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240605221851/en/

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