HANOVER, Md.--(BUSINESS WIRE)--
Ciena® Corporation ( CIEN), the network specialist, today announced unaudited financial results for its fiscal fourth quarter and year ended October 31, 2014.
For the fiscal fourth quarter 2014, Ciena reported revenue of $591.0 million as compared to $583.4 million for the fiscal fourth quarter 2013. For fiscal year 2014, Ciena reported revenue of $2.3 billion, as compared to $2.1 billion for fiscal year 2013.
On the basis of generally accepted accounting principles (GAAP), Ciena's net loss for the fiscal fourth quarter 2014 was $(30.7) million, or $(0.29) per diluted common share, which compares to a GAAP net loss of $(9.8) million, or $(0.09) per diluted common share, for the fiscal fourth quarter 2013. For fiscal year 2014, Ciena had a GAAP net loss of $(40.6) million, or $(0.38) per diluted common share, which compares to a GAAP net loss of $(85.4) million or $(0.83) per diluted common share for fiscal year 2013.
Ciena's adjusted (non-GAAP) net loss for the fiscal fourth quarter 2014 was $(8.2) million, or $(0.08) per diluted common share, which compares to an adjusted (non-GAAP) net income of $18.3 million, or $0.16 per diluted common share, for the fiscal fourth quarter 2013. For fiscal year 2014, Ciena's adjusted (non-GAAP) net income was $65.8 million, or $0.59 per diluted common share, as compared to an adjusted (non-GAAP) net income of $59.0 million, or $0.54 per diluted common share for fiscal year 2013.
“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,” said Gary B. Smith, president and CEO of Ciena. “As we continue to expand Ciena’s role and reach, we are well positioned to drive continued growth and increased profitability in 2015.”
Fiscal Fourth Quarter 2014 Performance Summary
The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to prior periods, including sequential quarterly and year over year changes. A reconciliation between the GAAP and adjusted (non-GAAP) measures contained in this release is included in Appendices A and B.
| | | | | GAAP Results (unaudited) | | | Q4 | | Q3 | | Q4 | | Period Change | | | FY 2014 | | FY 2014 | | FY 2013 | | Q-T-Q* | | Y-T-Y* | | Revenue | | $ | 591.0 | | | $ | 603.6 | | | $ | 583.4 | | | (2.1 | )% | | 1.3 | % | | Gross margin | | | 37.4 | % | | | 43.7 | % | | | 39.7 | % | | (6.3 | )% | | (2.3 | )% | | Operating expense | | $ | 222.7 | | | $ | 227.0 | | | $ | 232.1 | | | (1.9 | )% | | (4.1 | )% | | Operating margin | | | (0.3 | )% | | | 6.1 | % | | | (0.1 | )% | | (6.4 | )% | | (0.2 | )% | | | | | | | | | | | |
| | | | | Non-GAAP Results (unaudited) | | | Q4 | | Q3 | | Q4 | | Period Change | | | FY 2014 | | FY 2014 | | FY 2013 | | Q-T-Q* | | Y-T-Y* | | Revenue | | $ | 591.0 | | | $ | 603.6 | | | $ | 583.4 | | | (2.1 | )% | | 1.3 | % | | Adj. gross margin | | | 37.9 | % | | | 44.3 | % | | | 40.8 | % | | (6.4 | )% | | (2.9 | )% | | Adj. operating expense | | $ | 203.7 | | | $ | 206.3 | | | $ | 210.5 | | | (1.3 | )% | | (3.2 | )% | | Adj. operating margin | | | 3.4 | % | | | 10.1 | % | | | 4.7 | % | | (6.7 | )% | | (1.3 | )% | | | | | | | | | | | |
| | | | | Revenue by Segment (unaudited) | | | Q4 FY 2014 | | Q3 FY 2014 | | Q4 FY 2013 | | | Revenue | | % | | Revenue | | % | | Revenue | | % | | Converged Packet Optical | | $ | 383.3 | | 64.9 | | $ | 382.0 | | 63.3 | | $ | 350.9 | | 60.2 | | Packet Networking | | | 56.4 | | 9.5 | | | 69.5 | | 11.5 | | | 61.2 | | 10.5 | | Optical Transport | | | 26.5 | | 4.5 | | | 31.0 | | 5.1 | | | 52.6 | | 9.0 | | Software and Services | | | 124.8 | | 21.1 | | | 121.1 | | 20.1 | | | 118.7 | | 20.3 | | Total | | $ | 591.0 | | 100.0 | | $ | 603.6 | | 100.0 | | $ | 583.4 | | 100.0 | | | | | | | | | | | | | |
| * Denotes % change, or in the case of margin, absolute change | | |
Additional Performance Metrics for Fiscal Fourth Quarter 2014
Non-U.S. customers contributed 47.8% of total revenueOne 10%-plus customer represented a total of 12.2% of revenueCash and investments totaled $777.0 millionCash flow from operations totaled $73.8 millionAverage days' sales outstanding (DSOs) were 79Accounts receivable balance was $519.0 millionInventories totaled $254.7 million, including:Raw materials: $64.8 millionWork in process: $8.4 millionFinished goods: $165.8 millionDeferred cost of sales: $75.8 millionReserve for excess and obsolescence: $(60.1) millionProduct inventory turns were 4.8Headcount totaled 5,161Business Outlook for Fiscal First Quarter 2015
Statements relating to business outlook are forward-looking in nature and actual results may differ materially. These statements should be read in the context of the Notes to Investors below.
Ciena expects financial performance for fiscal first quarter 2015 to include:
Revenue in the range of $540 to $570 millionAdjusted (non-GAAP) gross margin percentage in the low 40s rangeAdjusted (non-GAAP) operating expense of approximately $210 million |
