HANOVER, Md. - Ciena Corporation (NYSE:CIEN), a networking systems, services, and software company, today announced financial results for its fiscal first quarter ended January 27, 2024.
The company reported a slight decline in revenue, which came in at $1.04 billion, down 1.8% from the fiscal first quarter of the previous year, and above the analyst consensus estimate of $1.02 billion. Adjusted (non-GAAP) earnings per share (EPS) for the quarter were $0.66, surpassing analyst expectations by $0.19.
President and CEO Gary Smith commented on the results, stating, "We delivered solid fiscal first quarter results, including strong profitability, as we continue to expand our relationships and gain share with cloud providers." He also noted that while the company is confident in the long-term demand for bandwidth, service providers are taking longer than expected to work through high levels of inventory.
Ciena's GAAP net income for the quarter was $49.5 million, or $0.34 per diluted common share, compared to a GAAP net income of $76.2 million, or $0.51 per diluted common share, for the same period last year. The adjusted (non-GAAP) net income was $96.8 million, or $0.66 per diluted common share, an increase from the adjusted net income of $95.6 million, or $0.64 per diluted common share, in the fiscal first quarter of 2023.
Despite the earnings beat, Ciena's stock experienced a significant drop, falling 10.30%. The company's gross margin improved to 45.0% on a GAAP basis and to 45.7% on an adjusted basis, compared to 43.2% and 43.7%, respectively, in the prior year. Operating expenses increased both on a GAAP basis and non-GAAP basis, by 3.1% and 2.3% respectively.
Ciena also reported a share repurchase during the quarter, buying back approximately 691 thousand shares of common stock for an aggregate price of $32.0 million. The company's cash and investments totaled $1.48 billion, with a cash flow from operations of $266.1 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.