Company News
Ciena reports fiscal Q4 2021 and year-end financial results
Ciena® Corporation, a networking systems, services and software company, today announced unaudited financial results for its fiscal fourth quarter and year ended October 30, 2021.
- Q4 Revenue: $1.04 billion, increasing 25.7% year over year
- Q4 Net Income per Share: $0.66 GAAP; $0.85 adjusted (non-GAAP), increasing 41.7% year over year
- Share Repurchases: Repurchased approximately 0.5 million shares of common stock for an aggregate price of $26.7 million during the fourth quarter
“Our strong financial results exceeded our expectations in the fourth quarter and for the full fiscal year, driven by continued execution of our strategy and our demonstrated ability to manage supply chain challenges,” said Gary Smith, President and CEO, Ciena. “Looking ahead, we intend to continue driving growth in our business by leveraging our market leadership and investing to capitalize on robust demand dynamics. In addition, our strong balance sheet and cash generation expectations allow us to increase return of capital to our shareholders.”
For fiscal fourth quarter 2021, Ciena reported revenue of $1.04 billion, as compared to $828.5 million for fiscal fourth quarter 2020. For fiscal year 2021, Ciena reported revenue of $3.62 billion, as compared to $3.53 billion for fiscal year 2020.
Ciena’s GAAP net income for fiscal fourth quarter 2021 was $103.5 million, or $0.66 per diluted common share, which compares to GAAP net income of $65.0 million, or $0.42 per diluted common share, for fiscal fourth quarter 2020. For fiscal year 2021, Ciena’s GAAP net income was $500.2 million, or $3.19 per diluted common share, as compared to GAAP net income of $361.3 million, or $2.32 per diluted common share, for fiscal year 2020.
Ciena’s adjusted (non-GAAP) net income for fiscal fourth quarter 2021 was $132.7 million, or $0.85 per diluted common share, which compares to adjusted (non-GAAP) net income of $94.5 million, or $0.60 per diluted common share, for fiscal fourth quarter 2020. For fiscal year 2021, Ciena’s adjusted (non-GAAP) net income was $456.5 million, or $2.91 per diluted common share, as compared to adjusted (non-GAAP) net income of $460.1 million, or $2.95 per diluted common share, for fiscal year 2020.
Share repurchase program
On December 1, 2021, Ciena’s Board of Directors authorized the repurchase of up to $1.0 billion of the Company’s stock, replacing the previous share repurchase authorization. In connection with this new authorization, the company intends to enter into an accelerated share repurchase (ASR) arrangement under which it will repurchase $250 million of its common stock. The final settlement of the ASR is expected to be completed in the second quarter of fiscal 2022.
Performance summary for the fiscal Q4 and the year ended October 30, 2021
The tables below (in millions, except percentage data) provide comparisons of certain quarterly and annual results to the prior year. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.
| GAAP Results (unaudited) | ||||||
| Quarter Ended | Period | Year Ended | Period | |||
| October 30.2021 | October 31,2021 | Change Y-T-Y | October 30,2020 | October 31,2020 | Change Y-T-Y* | |
| Revenue | $1041.5 | $828.5 | 25.7% | $3620.7 | $3532.2 | 2.5% |
| Gross margin | 45.8% | 48.8% | 3% | 47.6% | 46.8% | 0.8% |
| Operating expense | $339.7 | $310.9 | 9.3% | $1226.6 | $1165.9 | 5.2% |
| Operating margin | 13.2% | 11.3% | 1.9% | 13.7% | 13.8% | 0.1% |
| Non-GAAP Results (unaudited) | |||||||||||||||||||||||
| Quarter Ended | Period | Year Ended | Period | ||||||||||||||||||||
| October 30,2021 | October 31, 2020 | Change Y-T-Y* | October 30,2021 | October 31,2020 | Change Y-T-Y* | ||||||||||||||||||
| Revenue | $ | 1,041.5 | $ | 828.5 | 25.7% | $ | 3,620.7 | $ | 3,532.2 | 2.5% | |||||||||||||
| Adj. gross margin | 46.3% | 49.5% | (3.2)% | 47.9% | 47.4% | 0.5% | |||||||||||||||||
| Adj. operating expense | $ | 307.1 | $ | 278.9 | 10.1% | $ | 1,129.3 | $ | 1,055.3 | 7.0% | |||||||||||||
| Adj. operating margin | 16.8% | 15.8% | 1.0% | 16.8% | 17.6% | (0.8)% | |||||||||||||||||
| Adj. EBITDA | $ | 199.2 | $ | 154.5 | 28.9% | $ | 702.8 | $ | 713.9 | (1.6)% | |||||||||||||
| * Denotes % change, or in the case of margin, absolute change | |||||||||||||||||||||||
| Revenue by Segment (unaudited) | ||||||||||||||
| Quarter Ended | ||||||||||||||
| October 30, 2021 | October 31, 2020 | |||||||||||||
| Revenue | %** | Revenue | % ** | |||||||||||
| Networking Platforms | ||||||||||||||
| Converged Packet Optical | $ | 754.6 | 72.5 | $ | 579.3 | 69.9 | ||||||||
| Routing and Switching (1) | 74.2 | 7.1 | 56.0 | 6.8 | ||||||||||
| Total Networking Platforms | 828.8 | 79.6 | 635.3 | 76.7 | ||||||||||
| Platform Software and Services | 66.1 | 6.3 | 54.5 | 6.6 | ||||||||||
| Blue Planet Automation Software and Services | 19.8 | 1.9 | 20.9 | 2.5 | ||||||||||
| Global Services | ||||||||||||||
| Maintenance Support and Training | 71.3 | 6.9 | 67.0 | 8.1 | ||||||||||
| Installation and Deployment | 47.2 | 4.5 | 43.0 | 5.2 | ||||||||||
| Consulting and Network Design | 8.3 | 0.8 | 7.8 | 0.9 | ||||||||||
| Total Global Services | 126.8 | 12.2 | 117.8 | 14.2 | ||||||||||
| Total | $ | 1,041.5 | 100.0 | $ | 828.5 | 100.0 | ||||||||
|
|
Revenue by Segment (unaudited) | |||||||||||||
| Year Ended | ||||||||||||||
| October 30, 2021 | October 31, 2020 | |||||||||||||
| Revenue | %** | Revenue | % ** | |||||||||||
| Networking Platforms | ||||||||||||||
| Converged Packet Optical | $ | 2,553.5 | 70.5 | $ | 2,547.6 | 72.1 | ||||||||
| Routing and Switching (1) | 271.8 | 7.5 | 267.5 | 7.6 | ||||||||||
| Total Networking Platforms | 2,825.3 | 78.0 | 2,815.1 | 79.7 | ||||||||||
| Platform Software and Services | 229.6 | 6.4 | 197.8 | 5.6 | ||||||||||
| Blue Planet Automation Software and Services | 77.2 | 2.1 | 62.6 | 1.8 | ||||||||||
| Global Services | ||||||||||||||
| Maintenance Support and Training | 283.4 | 7.8 | 269.4 | 7.6 | ||||||||||
| Installation and Deployment | 171.5 | 4.7 | 152.0 | 4.3 | ||||||||||
| Consulting and Network Design | 33.7 | 1.0 | 35.3 | 1.0 | ||||||||||
| Total Global Services | 488.6 | 13.5 | 456.7 | 12.9 | ||||||||||
| Total | $ | 3,620.7 | 100.0 | $ | 3,532.2 | 100.0 | ||||||||
** Denotes % of total revenue
(1) Ciena renamed its former “Packet Networking” product line “Routing and Switching” effective as of the beginning of fiscal 2021. This change, affecting only the presentation of such information, was made on a prospective basis and does not impact comparability of previous financial results or the composition of this product category.
Additional performance metrics for fiscal fourth quarter and year ended October 30, 2021
| Revenue by Geographic Region (unaudited) | |||||||||||||||||
| Quarter Ended | |||||||||||||||||
| October 30, 2021 | October 31, 2020 | ||||||||||||||||
| Revenue | % ** | Revenue | % ** | ||||||||||||||
| Americas | $ | 748.7 | 71.9 | $ | 531.6 | 64.2 | |||||||||||
| Europe, Middle East and Africa | 170.8 | 16.4 | 157.6 | 19.0 | |||||||||||||
| Asia Pacific | 122.0 | 11.7 | 139.3 | 16.8 | |||||||||||||
| Total | $ | 1,041.5 | 100.0 | $ | 828.5 | 100.0 | |||||||||||
| Revenue by Geographic Region (unaudited) | |||||||||||||||||
| Year Ended | |||||||||||||||||
| October 30, 2021 | October 31, 2020 | ||||||||||||||||
| Revenue | % ** | Revenue | % ** | ||||||||||||||
| Americas | $ | 2,525.6 | 69.8 | $ | 2,469.3 | 69.9 | |||||||||||
| Europe, Middle East and Africa | 670.5 | 18.5 | 591.5 | 16.8 | |||||||||||||
| Asia Pacific | 424.6 | 11.7 | 471.4 | 13.3 | |||||||||||||
| Total | $ | 3,620.7 | 100.0 | $ | 3,532.2 | 100.0 | |||||||||||
| ** Denotes % of total revenue | |||||||||||||||||
- One 10%-plus customer represented a total of 12.9% and 12.4% of revenue for the fiscal fourth quarter and fiscal year 2021, respectively
- Cash and investments totaled $1.7 billion
- Cash flow from operations totaled $254.9 million and $541.6 million for the fiscal fourth quarter and fiscal year 2021, respectively
- Average days’ sales outstanding (DSOs) were 85 and 98 for the fiscal fourth quarter and fiscal year 2021, respectively
- Accounts receivable, net balance was $885.0 million
- Unbilled contract asset balance, net was $101.4 million
- Inventories totaled $374.3 million, including:
- Raw materials: $175.4 million
- Work in process: $10.3 million
- Finished goods: $180.8 million
- Deferred cost of sales: $44.7 million
- Reserve for excess and obsolescence: $(36.9) million
- Product inventory turns were 5.0 and 4.1 for the fiscal fourth quarter and fiscal year 2021, respectively
- Headcount totaled 7,241
CT Bureau
You must be logged in to post a comment Login