Ciena reports improved Q4 2014 and year-end financial results

Created January 7, 2015
News and Business

Delivers 10% annual revenue growth and 6.5% adjusted operating margin for the year. Ciena, the network specialist, has announced unaudited financial results for its fiscal fourth quarter and year ended October 31, 2014. For the fiscal fourth quarter 2014, the company reported revenue of $591.0m ($583.4m for Q4 2013). For the fiscal year 2014, Ciena reported revenue of $2.3bn ($2.1bn for 2013).

Ciena’s adjusted (non-GAAP) net loss for Q4 2014 was $(8.2)m, or $(0.08) per diluted common share, which compares to an adjusted (non-GAAP) net income of $18.3m, or $0.16 per diluted common share, for Q4 2013. For fiscal year 2014, Ciena’s adjusted (non-GAAP) net income was $65.8m, or $0.59 per diluted common share, as compared to an adjusted (non-GAAP) net income of $59.0m, or $0.54 per diluted common share for fiscal year 2013.

Gary B. Smith, president and CEO of Ciena, commented “We delivered strong revenue growth and improved profitability in fiscal 2014 as we benefited from a more diversified customer base and the strong alignment of our solutions with the increasing on-demand needs of our customers.

“As we continue to expand Ciena’s role and reach, we are well positioned to drive continued growth and increased profitability in 2015.”

The 5200-strong company highlighted a range of additional performance metrics for its performance and achievements during the fourth quarter of 2014: non-U.S. customers contributed 48% of total revenue; one 10%-plus customer represented a total of 12.2% of the quarter’s revenue; company cash and investments totaled $777m; and average days’ sales outstanding (DSOs) were 79.

Considering the company’s Business Outlook for Q1 2015, Ciena’s financial report stated it expects financial performance for fiscal first quarter 2015 to include: revenue in the range of $540 to $570m and adjusted (non-GAAP) gross margin percentage in the “low 40s range” (millions of dollars), with adjusted (non-GAAP) operating expense of approximately $210m.

By Matthew Peach

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This article was written
by Matthew Peach

Matthew Peach is a freelance technology journalist specialising in photonics and communications. He has previously worked for several business-to-business publishers, editing a range of high-tech magazines and websites.