Ciena Corporation Reports 11.8% Revenue Decline to $942.3 Million in Latest Quarter

For the quarter ended July 27, 2024, Ciena Corporation reported total revenue of $942.3 million, a decline of 11.8% from $1,067.9 million in the same quarter of the previous year. For the nine months ended July 27, 2024, total revenue was $2.89 billion, down 11.2% from $3.26 billion for the same period in 2023. The decrease in revenue was primarily attributed to a significant drop in the Networking Platforms segment, which saw a $147 million decline in revenue, largely due to reduced sales of the 6500 Packet-Optical Platform.

Gross profit for the quarter was $403.9 million, a decrease of 10.0% from $448.9 million year-over-year. For the nine months, gross profit fell to $1.26 billion from $1.39 billion. The income from operations for the quarter was $26.7 million, down from $78.2 million in the prior year, while for the nine months, it decreased to $107.4 million from $266.2 million. Net income for the quarter was $14.2 million, compared to $29.7 million in the same quarter last year, and for the nine months, net income dropped to $46.9 million from $163.6 million.

Ciena's operating expenses increased slightly, totaling $377.2 million for the quarter, up from $370.7 million in the previous year. Research and development expenses remained stable, while selling and marketing expenses rose by 2.8%. General and administrative expenses saw a notable increase of 18.0%, reflecting higher legal fees and employee-related costs.

The company undertook a global workforce reduction of approximately 390 employees as part of a business optimization strategy. Additionally, Ciena has been expanding its manufacturing capacity and accumulating raw materials inventory in anticipation of increased production once supply constraints ease.

Cash and cash equivalents as of July 27, 2024, were $883.4 million, down from $1.01 billion as of October 28, 2023. The company reported a net cash provided by operating activities of $165.2 million for the nine months, a significant improvement from a net cash outflow of $27.1 million in the same period last year.

Ciena's strategic focus includes enhancing its product offerings in the Platform Software and Services segment, which saw revenue growth, and addressing challenges in the Networking Platforms segment. The company continues to navigate market conditions and supply chain dynamics while managing its financial health through careful cash management and operational adjustments.