& cplSiteName &

Ciena Still Struggling for Profitability

Ray Le Maistre
12/13/2012
50%
50%

Ciena Corp. (NYSE: CIEN) reported its fiscal fourth-quarter and full-year financials early Thursday and the primary color was red.

It also painted a discouraging picture for the current quarter that runs to the end of January 2013.

The vendor reported a net loss of $38.8 million from revenues of $465.5 million for the three months ending Oct. 31. Its adjusted (or non-GAAP) loss, after one-time costs, was still in negative territory, coming in at $6.7 million, or 7 cents per share.

Financial analysts had, on average, been expecting a non-GAAP loss of 6 cents per share from revenues of $468.3 million for the fourth quarter.

The news sparked a 2 percent dip in Ciena's share price, to $15.25 in pre-market trading.

Ciena has been struggling to achieve profitability this year. (See Ciena Reports Fiscal Q3 Loss of $29.8M, Ciena Marks $28M Q2 Loss and Ciena Posts Slimmer Q1 Loss.)

That trend, naturally, shows up in its full-year numbers. For fiscal 2012, Ciena generated revenues of $1.83 billion, up about 5 percent year-on-year, and a net loss of $144 million. Its full-year non-GAAP loss was 23.5 million, or 24 cents per share, slightly worse than Wall Street had expected.

For the first quarter of its new financial year, "a quarter in which we typically experience seasonal reductions in order volume and customer deployment activity," Ciena noted that it expects revenues in the range of $435 million to $460 million. Analysts are currently expecting $458.6 million in revenues, so may revise their expectations in light of Ciena's forecast.

As ever, though, Ciena's CEO Gary Smith is talking up the company's situation. In the earnings release he states that Ciena "continued to significantly outpace the market and take share in 2012 despite the challenging environment. That momentum resulted in record order flow and year-end backlog," he adds.

Ciena's results come on the heels of some transport sector consolidation action and a report from Ovum Ltd. that suggests the optical networking equipment sector has been shrinking in 2012. (See Ovum: Optical Networking Market Shrinks Again and NSN to Sell Optical Business.)

That trend is borne out by Ciena's fourth-quarter sales figures for its core transport products. Its Packet-Optical Transport portfolio generated sales of $289.4 million, down 2.3 percent from a year earlier, while the Packet-Optical Switching portfolio generated revenues of $20.5 million, down 50 percent year-on-year.

Ciena's not alone, of course, in feeling the effects of a shrinking optical market. (See Margin Misery for Alcatel-Lucent.)

But not every Ciena division is seeing its sales slide. Carrier Ethernet sales are up, by 66 percent to $47.9 million, while Software and Services grew more than 20 percent year-on-year to $107.7 million.

— Ray Le Maistre, International Managing Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 30, 2017, The Westin Times Square
December 5-7, 2017, The Intercontinental Prague
March 20-22, 2018, Denver Marriott Tech Center
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
When Will 6G Arrive? Hopefully Never, Says BT's McRae
Iain Morris, News Editor, 11/21/2017
Let's Talk About 5G Efficiency, Not Wacky Services
Iain Morris, News Editor, 11/21/2017
Top 5 Tech Turkeys 2017
Dan Jones, Mobile Editor, 11/22/2017
AT&T's Lurie Leaps to Synchronoss as New CEO
Dan Jones, Mobile Editor, 11/17/2017
Wireless Could Arrive Soon in NYC Subway Tunnels
Dan Jones, Mobile Editor, 11/20/2017
Animals with Phones
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives