EX-99.1 2 ex9912025q1earningspressre.htm EX-99.1 Document

FOR IMMEDIATE RELEASE

Ciena Reports Fiscal First Quarter 2025 Financial Results


HANOVER, Md. - March 11, 2025 - Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal first quarter ended February 1, 2025.

•Q1 Revenue: $1.07 billion

•Q1 Net Income per Share: $0.31 GAAP; $0.64 adjusted (non-GAAP)

•Share Repurchases: Repurchased approximately 1.0 million shares of common stock for an aggregate price of $79.2 million during the quarter


"We delivered strong fiscal first quarter results that reflect balanced growth and strong momentum across our customer segments and reinforce the continuation of positive demand dynamics," said Gary Smith, president and CEO, Ciena. "As the global leader in high-speed connectivity, we are incredibly well positioned to benefit from the global investment in networks to scale for cloud and AI. As a result, we are very confident in our ability to deliver in fiscal year 2025 and beyond."

For the fiscal first quarter 2025, Ciena reported revenue of $1.07 billion as compared to $1.04 billion for the fiscal first quarter 2024.

Ciena's GAAP net income for the fiscal first quarter 2025 was $44.6 million, or $0.31 per diluted common share, which compares to a GAAP net income of $49.5 million, or $0.34 per diluted common share, for the fiscal first quarter 2024.

Ciena's adjusted (non-GAAP) net income for the fiscal first quarter 2025 was $94.0 million, or $0.64 per diluted common share, which compares to an adjusted (non-GAAP) net income of $96.8 million, or $0.66 per diluted common share, for the fiscal first quarter 2024.

Fiscal First Quarter 2025 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.
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GAAP Results (unaudited)
Q1Q1Period Change
FY 2025FY 2024Y-T-Y*
Revenue$1,072.3 $1,037.7 3.3 %
Gross margin44.0 %45.0 %(1.0)%
Operating expense$391.2 $382.3 2.3 %
Operating margin7.5 %8.2 %(0.7)%
Non-GAAP Results (unaudited)
Q1Q1Period Change
FY 2025FY 2024Y-T-Y*
Revenue$1,072.3 $1,037.7 3.3 %
Adj. gross margin44.7 %45.7 %(1.0)%
Adj. operating expense$347.4 $336.8 3.1 %
Adj. operating margin12.3 %13.2 %(0.9)%
Adj. EBITDA$156.5 $160.0 (2.2)%
* Denotes % change, or in the case of margin, absolute change
Revenue by Segment (unaudited)
Q1 FY 2025Q1 FY 2024
Revenue%**Revenue%**
Networking Platforms
Optical Networking$728.0 67.9 $695.8 67.1 
Routing and Switching93.2 8.7 111.4 10.7 
Total Networking Platforms821.2 76.6 807.2 77.8 
Platform Software and Services95.1 8.9 89.7 8.6 
Blue Planet Automation Software and Services26.0 2.4 14.0 1.4 
Global Services
Maintenance Support and Training74.6 7.0 74.1 7.1 
Installation and Deployment47.7 4.4 42.7 4.1 
Consulting and Network Design7.7 0.7 10.0 1.0 
Total Global Services130.0 12.1 126.8 12.2 
Total$1,072.3 100.0 $1,037.7 100.0 
** Denotes % of total revenue





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Additional Performance Metrics for Fiscal First Quarter 2025
Revenue by Geographic Region (unaudited)
Q1 FY 2025Q1 FY 2024
Revenue% **Revenue% **
Americas$795.7 74.2 $718.2 69.2 
Europe, Middle East and Africa157.9 14.7 207.4 20.0 
Asia Pacific118.7 11.1 112.1 10.8 
Total$1,072.3 100.0 $1,037.7 100.0 

** Denotes % of total revenue
•Two customers represented 10%-plus of revenue combining for a total of 26.1% of revenue
•Cash and investments totaled $1.32 billion
•Cash flow from operations totaled $103.7 million
•Average days' sales outstanding (DSOs) were 90
•Accounts receivable, net balance was $938.7 million
•Unbilled contract asset, net balance was $138.7 million
•Inventories totaled $845.1 million, including:
◦Raw materials: $601.9 million
◦Work in process: $32.7 million
◦Finished goods: $289.2 million
◦Deferred cost of sales: $30.1 million
◦Reserve for excess and obsolescence: $(108.8) million
•Product inventory turns were 2.3
•Headcount totaled 8,795

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal First Quarter 2025 Results
Today, Tuesday, March 11, 2025, 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 first quarter 2025 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
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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: "We delivered strong fiscal first quarter results that reflect balanced growth and strong momentum across our customer segments and reinforce the continuation of positive demand dynamics. As the global leader in high-speed connectivity, we are incredibly well positioned to benefit from the global investment in networks to scale for cloud and AI. As a result, we are very confident in our ability to deliver in fiscal year 2025 and beyond."

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 20, 2024 and included in its Quarterly Report on Form 10-Q for the first quarter of fiscal 2025 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.
 

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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter Ended
 February 1,January 27,
 20252024
Revenue: 
Products$854,785 $835,777 
Services217,475 201,932 
Total revenue1,072,260 1,037,709 
Cost of goods sold: 
Products490,804 466,472 
Services109,635 104,275 
Total cost of goods sold600,439 570,747 
Gross profit471,821 466,962 
Operating expenses: 
Research and development192,663 187,269 
Selling and marketing136,504 128,158 
General and administrative53,902 54,683 
Significant asset impairments and restructuring costs1,544 4,971 
Amortization of intangible assets6,545 7,252 
Total operating expenses391,158 382,333 
Income from operations80,663 84,629 
Interest and other income, net11,578 10,650 
Interest expense(22,918)(23,776)
Loss on extinguishment and modification of debt(729)— 
Income before income taxes68,594 71,503 
Provision for income taxes
24,022 21,956 
Net income$44,572 $49,547 
Net Income per Common Share
Basic net income per common share$0.31 $0.34 
Diluted net income per potential common share $0.31 $0.34 
Weighted average basic common shares outstanding142,880 145,291 
Weighted average dilutive potential common shares outstanding1
145,944 145,848 

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) 3.1 million for the first quarter of fiscal 2025, and (ii) 0.6 million for the first quarter of fiscal 2024.

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CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
February 1,
2025		November 2,
2024
ASSETS 
Current assets: 
Cash and cash equivalents$874,749 $934,863 
Short-term investments337,320 316,343 
Accounts receivable, net938,703 908,597 
Inventories, net845,132 820,430 
Prepaid expenses and other495,807 564,183 
Total current assets3,491,711 3,544,416 
Long-term investments105,035 80,920 
Equipment, building, furniture and fixtures, net320,382 337,722 
Operating lease right-of-use assets25,113 27,417 
Goodwill444,306 444,707 
Other intangible assets, net156,205 165,020 
Deferred tax asset, net868,432 886,441 
Other long-term assets161,718 154,694 
Total assets$5,572,902 $5,641,337 
LIABILITIES AND STOCKHOLDERS’ EQUITY 
Current liabilities: 
Accounts payable$395,770 $423,401 
Accrued liabilities and other short-term obligations362,021 393,905 
Deferred revenue174,151 156,379 
Operating lease liabilities12,995 14,455 
Current portion of long-term debt11,580 11,700 
Total current liabilities956,517 999,840 
Long-term deferred revenue83,126 81,240 
Other long-term obligations186,027 185,938 
Long-term operating lease liabilities22,769 25,107 
Long-term debt, net1,531,084 1,533,074 
Total liabilities2,779,523 2,825,199 
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; 142,528,510 and 142,656,116 shares issued and outstanding
1,425 1,427 
Additional paid-in capital6,108,118 6,154,869 
Accumulated other comprehensive loss(67,289)(46,711)
Accumulated deficit(3,248,875)(3,293,447)
Total stockholders’ equity2,793,379 2,816,138 
Total liabilities and stockholders’ equity$5,572,902 $5,641,337 
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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
Quarter Ended
 February 1,January 27,
 20252024
Cash flows provided by operating activities: 
Net income$44,572 $49,547 
Adjustments to reconcile net income to net cash provided by operating activities: 
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements24,679 22,808 
Share-based compensation expense40,806 37,827 
Amortization of intangible assets8,778 10,016 
Deferred taxes(17,085)(4,368)
Provision for inventory excess and obsolescence10,918 10,350 
Provision for warranty5,697 4,841 
Other(6,655)5,051 
Changes in assets and liabilities: 
Accounts receivable(33,454)135,160 
Inventories(35,844)56,157 
Prepaid expenses and other92,036 17,116 
Operating lease right-of-use assets2,902 3,084 
Accounts payable, accruals and other obligations(49,577)(90,915)
Deferred revenue20,311 14,022 
Short and long-term operating lease liabilities(4,361)(4,620)
Net cash provided by operating activities103,723 266,076 
Cash flows provided by (used in) investing activities: 
Payments for equipment, furniture, fixtures and intellectual property(26,884)(16,599)
Purchases of investments(97,024)(21,213)
Proceeds from sales and maturities of investments55,061 53,674 
Settlement of foreign currency forward contracts, net1,757 2,271 
Net cash provided by (used in) investing activities(67,090)18,133 
Cash flows used in financing activities: 
Proceeds for modification of debt, net19,175 — 
Cash paid for extinguishment of debt(19,175)— 
Payment of long term debt(2,895)— 
Payment of debt issuance costs(10)(2,402)
Payment of finance lease obligations(1,020)(981)
Shares repurchased for tax withholdings on vesting of stock unit awards(25,489)(10,076)
Repurchases of common stock - repurchase program, net(81,176)(38,195)
Proceeds from issuance of common stock17,133 16,934 
Net cash used in financing activities(93,457)(34,720)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(3,289)4,646 
Net increase (decrease) in cash, cash equivalents and restricted cash(60,113)254,135 
Cash, cash equivalents and restricted cash at beginning of period935,026 1,010,786 
Cash, cash equivalents and restricted cash at end of period$874,913 $1,264,921 
Supplemental disclosure of cash flow information 
Cash paid during the period for interest, net$25,559 $18,582 
Cash paid during the period for income taxes, net$10,426 $8,260 
Operating lease payments$4,762 $5,080 
Non-cash investing and financing activities
Purchase of equipment in accounts payable$4,735 $4,225 
Repurchase of common stock in accrued liabilities from repurchase program, net$4,198 $3,110 
Operating right-of-use assets subject to lease liability $1,056 $3,498 
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APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements
(in thousands, except per share data) (unaudited)
Quarter Ended
February 1,January 27,
20252024
Gross Profit Reconciliation (GAAP/non-GAAP)
GAAP gross profit$471,821 $466,962 
Share-based compensation-products1,750 1,318 
Share-based compensation-services3,405 3,020 
Amortization of intangible assets2,233 2,764 
Total adjustments related to gross profit7,388 7,102 
Adjusted (non-GAAP) gross profit$479,209 $474,064 
Adjusted (non-GAAP) gross profit percentage44.7 %45.7 %
Operating Expense Reconciliation (GAAP/non-GAAP)
GAAP operating expense$391,158 $382,333 
Share-based compensation-research and development14,237 12,880 
Share-based compensation-sales and marketing11,597 10,305 
Share-based compensation-general and administrative9,827 10,079 
Significant asset impairments and restructuring costs1,544 4,971 
Amortization of intangible assets6,545 7,252 
Total adjustments related to operating expense43,750 45,487 
Adjusted (non-GAAP) operating expense$347,408 $336,846 
Income from Operations Reconciliation (GAAP/non-GAAP)
GAAP income from operations$80,663 $84,629 
Total adjustments related to gross profit7,388 7,102 
Total adjustments related to operating expense43,750 45,487 
Total adjustments related to income from operations51,138 52,589 
Adjusted (non-GAAP) income from operations$131,801 $137,218 
Adjusted (non-GAAP) operating margin percentage12.3 %13.2 %
Net Income Reconciliation (GAAP/non-GAAP)
GAAP net income$44,572 $49,547 
Exclude GAAP provision for income taxes24,022 21,956 
Income before income taxes68,594 71,503 
Total adjustments related to income from operations51,138 52,589 
Loss on extinguishment and modification of debt729 — 
Adjusted income before income taxes120,461 124,092 
Non-GAAP tax provision on adjusted income before income taxes26,501 27,300 
Adjusted (non-GAAP) net income$93,960 $96,792 
Weighted average basic common shares outstanding142,880145,291
Weighted average dilutive potential common shares outstanding 1
145,944145,848
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APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements
(in thousands, except per share data) (unaudited)
Quarter Ended
February 1,January 27,
20252024
Net Income per Common Share
GAAP diluted net income per potential common share$0.31 $0.34 
Adjusted (non-GAAP) diluted net income per potential common share$0.64 $0.66 

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) 3.1 million for the first quarter of fiscal 2025; and (ii) 0.6 million for the first quarter of fiscal 2024.
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APPENDIX B - Calculation of EBITDA and Adjusted EBITDA
(in thousands) (unaudited)
Quarter Ended
February 1,January 27,
20252024
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Net income (GAAP)$44,572 $49,547 
Add: Interest expense22,918 23,776 
Less: Interest and other income, net11,578 10,650 
Add: Loss on extinguishment and modification of debt729 — 
Add: Provision for income taxes24,022 21,956 
Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements24,679 22,808 
Add: Amortization of intangible assets8,778 10,016 
EBITDA$114,120 $117,453 
Add: Share-based compensation expense40,816 37,602 
Add: Significant asset impairments and restructuring costs1,544 4,971 
Adjusted EBITDA$156,480 $160,026 
* * *
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.
•Loss on extinguishment and modification of debt - reflects extinguishment and debt modification expenses related to refinancing our term loan during the first quarter of fiscal 2025.
•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 first quarter of fiscal 2025 and the fiscal first quarter of 2024. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy.
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