Light Reading
Optical vendor ends its financial year in the red

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
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
CenturyLink: Building the Case for NFV

12|19|14   |   02:14   |   (0) comments


At the 2020 Vision Executive Summit, James Feger, VP, Network Strategy & Development at CenturyLink, talks about how the US operator is approaching virtual network functions from an operational and business case perspective.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
Comcast Launches 4K Streaming Service
Alan Breznick, Cable/Video Practice Leader, 12/18/2014
US Carriers, You're Going to Cuba!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/18/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Webinar Archive