Light Reading

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
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
CEO Chat With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
They say there's no such thing as a stupid question, but I probably sail pretty close to the wind in some of my interviews for LR. But then that's one of the things I ...
Cats with Phones
Cats & Boxes: A Love Affair Click Here