Ciena Reports Fiscal Third Quarter 2018 Financial Results

Year-over-year revenue growth of 12% reflects strong execution and another quarter of consistent performance

Q3 Revenue: $818.8 million, increasing 12.4% year over year
Q3 Net Income per Share: $0.34 GAAP; $0.48 adjusted (non-GAAP)
Share Repurchases: Repurchased approximately 1.4 million shares of common stock for an aggregate price of $35.6 million during the quarter

Ciena today announced unaudited financial results for its fiscal third quarter ended July 31, 2018.

“The combination of continued execution against our strategy and robust, broad-based customer demand resulted in outstanding fiscal third quarter performance,” said Gary B. Smith, president and CEO of Ciena. “With our diversification, global scale and innovation leadership, we remain confident in our business model and our ability to achieve our three-year financial targets.”

For the fiscal third quarter 2018, Ciena reported revenue of $818.8 million as compared to $728.7 million for the fiscal third quarter 2017.

Ciena’s GAAP net income for the fiscal third quarter 2018 was $50.8 million, or $0.34 per diluted common share, which compares to a GAAP net income of $60.0 million, or $0.39 per diluted common share, for the fiscal third quarter 2017.

Ciena’s adjusted (non-GAAP) net income for the fiscal third quarter 2018 was $74.3 million, or $0.48 per diluted common share, which compares to an adjusted (non-GAAP) net income of $56.4 million, or $0.35 per diluted common share, for the fiscal third quarter 2017.

Fiscal Third Quarter 2018 Performance Summary

The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to the prior year. Appendix A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.

• U.S. customers contributed 57.3% of total revenue
• Three customers accounted for greater than 10% of revenue and represented 33% of total revenue
• Cash and investments totaled $984.6 million
• Cash flow from operations totaled $88.1 million
• Free cash flow totaled $69.7 million
• Average days’ sales outstanding (DSOs) were 80
• Accounts receivable balance was $728.9 million
• Inventories totaled $227.9 million, including:
  • Raw materials: $54.0 million
  • Work in process: $11.1 million
  • Finished goods: $173.4 million
  • Deferred cost of sales: $38.5 million
  • Reserve for excess and obsolescence: $(49.1) million
• Product inventory turns were 7.0
• Headcount totaled 5,889

– CT Bureau