Ciena Corp. reports 2Q Earnings (trading up $61+ premarket here)
(20c vs 16c)
CIENA Reports Second Quarter Revenue of $425.4
Million, Adjusted Net Income of $0.20 per Diluted Share
LINTHICUM, Md.--(BUSINESS WIRE)--May 17, 2001--
Company Maintains 2001 Revenue Expectations of 95% to 105% Growth Over
2000; Nettles Moves to Executive Chairman, Smith Takes CEO Role
CIENA Corporation (NASDAQ:CIEN) today reported revenue of $425.4 million for
its second fiscal quarter ended April 30, 2001, including revenue from eight
new customers.
CIENA's second quarter sales represent sequential revenue growth of more
than 20 percent over the Company's fiscal first quarter revenue of $352.0
million, and an increase of more than 129 percent as compared to the same
period a year ago when the Company reported revenue of $185.7 million.
Adjusted net income for the second quarter, which excludes approximately
$75.7 million in charges related to the acquisition of Cyras Systems, Inc.,
as well as payroll taxes on stock option exercises, and amortization of
intangibles and goodwill, was $65.4 million or, $0.20, earnings per diluted
share.
This represents an increase of approximately 19 percent compared with
adjusted net income for the previous quarter of $55.1 million or, $0.18,
earnings per diluted share, exclusive of payroll tax on stock option
exercises and amortization of intangibles and goodwill. Consolidated
statements of operations showing net income inclusive of the aforementioned
items have been included with this press release.
Consensus of First Call estimates for CIENA's second quarter fiscal 2001 was
$0.16 earnings per diluted share.
In addition to its quarterly results, the Company announced that effective
immediately, current Chairman and Chief Executive Officer, Patrick Nettles
would assume the role of Executive Chairman, focused on the long-term
strategic direction of CIENA, while current President and Chief Operating
Officer, Gary Smith, would become President and Chief Executive Officer.
"CIENA's business has demonstrated remarkable resilience throughout these
last several quarters of tightening macro-economic conditions," said CIENA's
Executive Chairman, Patrick Nettles. "While service providers have clearly
become more cautious with where they spend scarce capex dollars, we believe
CIENA's strength offers further evidence of a shift in carrier spending -
from costly, hard-to-scale legacy networks to more capital efficient,
operationally-effective intelligent next-generation optical networks."
Quarterly Highlights
CIENA continues to diversify its growing customer base, taking revenue from
eight new customers in the second quarter, including initial revenues from
recently announced customers Dynegy, Genuity, Level 3 and TyCom. The
Company's total revenue-generating optical networking equipment customer
base now totals 49, of which, 33 contributed to CIENA's revenues during the
most recent quarter.
The second quarter also marked the second sequential quarter where sales of
CoreDirector(TM), CIENA's industry-leading next-generation, intelligent
optical core switch, surpassed ten percent of total revenue. CoreDirector
CI(TM), the reduced-footprint version of CoreDirector was released for
general availability in the quarter, as were enhanced SDH capabilities for
both the CoreDirector and CoreDirector CI platforms.
During the quarter CIENA also completed its acquisition of Cyras Systems,
Inc. with the Cyras organization forming CIENA's new Fremont,
California-based Metropolitan Switching Division. In addition, CIENA's
MetroDirector K2(TM), the metropolitan edge switching system developed by
Cyras, is currently ready for shipment in limited quantities and CIENA has
received initial customer commitments for the product.
"The integration of the Cyras team is proceeding well and we're very pleased
with the early customer traction we've seen from the MetroDirector K2
platform," said CIENA's President and CEO, Gary Smith.
Business Outlook
Commenting on CIENA's business outlook Smith said:
"Despite a challenging
economic environment, we continue to believe that it is possible for CIENA
to achieve 2001 revenue growth of between 95 to 105 percent over 2000. We
also believe that it is possible to achieve 2001 adjusted EPS within the
current consensus range of sell-side analyst estimates of $0.72 to $0.75,
provided we continue to successfully execute and macro economic conditions
do not change dramatically."
Live Web Broadcast of Q2 Results Discussion
In conjunction with this announcement, as previously announced, CIENA will
host a discussion of its second fiscal quarter results with investors and
financial analysts on Thursday, May 17, 2001 at 8:30 AM (Eastern). The live
broadcast of the discussion will be available via CIENA's homepage at
www.CIENA.com.
An archived version of the discussion will be available shortly following
the conclusion of the live broadcast on the Investor Relations page of
CIENA's website at: www.CIENA.com/investors.
ABOUT CIENA
CIENA Corporation's market-leading intelligent optical networking systems
form the core for the new era of networks and services worldwide. CIENA's
LightWorks(TM) architecture enables next generation optical services and
changes the fundamental economics of service-provider networks by
simplifying the network and reducing the cost to operate it.
Additional information about CIENA can be found at www.CIENA.com. |
