Ciena Corp (CIEN) Reports Robust Fiscal Fourth Quarter and Full-Year 2023 Results
Q4 Revenue reached $1.13 billion, a 16.3% increase year-over-year.
GAAP Net Income per Share rose to $0.62, with adjusted (non-GAAP) at $0.75.
Fiscal Year 2023 revenue soared to $4.39 billion, marking a 20.8% growth from the previous year.
Adjusted (non-GAAP) EBITDA for the fiscal year increased by 32.5%.
On December 7, 2023, Ciena Corp (NYSE:CIEN) released its 8-K filing, announcing unaudited financial results for its fiscal fourth quarter ended October 28, 2023. The company reported a significant increase in annual revenue, up 21% from the previous fiscal year, driven by robust demand, particularly from cloud provider customers. Ciena Corp (NYSE:CIEN) also highlighted its strategic execution, which has led to substantial market share gains and reinforced its industry leadership.
Fiscal Fourth Quarter and Full-Year 2023 Financial Highlights
Ciena Corp (NYSE:CIEN) reported a fiscal fourth quarter revenue of $1.13 billion, a 16.3% increase compared to $971.0 million in the same quarter of the previous year. For the full fiscal year 2023, the company's revenue reached $4.39 billion, up from $3.63 billion in fiscal year 2022, representing a 20.8% year-over-year growth.
The company's GAAP net income for the fiscal fourth quarter was $91.2 million, or $0.62 per diluted common share, compared to $57.6 million, or $0.39 per diluted common share, for the same period last year. On an adjusted (non-GAAP) basis, net income for the quarter was $111.2 million, or $0.75 per diluted common share, up from $90.9 million, or $0.61 per diluted common share, in the fiscal fourth quarter of 2022.
For the full fiscal year 2023, Ciena's GAAP net income totaled $254.8 million, or $1.71 per diluted common share, a significant increase from $152.9 million, or $1.00 per diluted common share, in fiscal year 2022. The adjusted (non-GAAP) net income for the year was $406.3 million, or $2.72 per diluted common share, compared to $288.9 million, or $1.90 per diluted common share, in the prior year.
Operational and Segment Performance
The company's gross margin for the fiscal fourth quarter was 43.1% on a GAAP basis and 43.7% on an adjusted (non-GAAP) basis, with a slight decrease from the previous year's figures. Operating expenses for the quarter were $395.0 million, reflecting a 10.9% increase year-over-year. Adjusted operating expenses were $337.6 million, a 7.9% rise from the fiscal fourth quarter of 2022.
Ciena Corp (NYSE:CIEN) reported an operating margin of 8.1% and an adjusted operating margin of 13.8% for the quarter, both showing improvements from the prior year. The adjusted EBITDA for the quarter was $178.8 million, a 16.5% increase year-over-year.
Revenue by segment showed that Optical Networking contributed the most with $748.0 million in the fiscal fourth quarter, followed by Routing and Switching at $128.9 million. The company's Global Services segment brought in $150.5 million in revenue.
Balance Sheet and Cash Flow
As of the end of fiscal year 2023, Ciena Corp (NYSE:CIEN) had cash and investments totaling $1.25 billion. The company generated $195.5 million in cash flow from operations during the fiscal fourth quarter and $168.3 million for the full fiscal year. The average days' sales outstanding (DSOs) were 92 for the quarter and 95 for the year. The accounts receivable net balance stood at $1.00 billion, with unbilled contract assets net balance at $150.3 million. Inventories totaled $1.05 billion, and product inventory turns were 2.0 for both the fiscal fourth quarter and the fiscal year.
During the quarter, Ciena Corp (NYSE:CIEN) repurchased approximately 4.2 million shares of common stock for an aggregate price of $188.8 million, reflecting the company's confidence in its financial strength and commitment to delivering shareholder value.
Outlook and Commentary
President and CEO Gary Smith commented on the results, stating,
Today we reported strong fiscal fourth quarter results, driven by positive demand dynamics, particularly with cloud provider customers. We delivered an outstanding fiscal year with 21% growth in revenue, gaining significant market share and further advancing our industry leadership position,"
and added,
Looking ahead, as we execute on our strategy to extend our market leadership in optical while expanding our opportunities in routing and switching, we expect to continue to grow revenue faster than the market and take share."
Ciena Corp (NYSE:CIEN) remains focused on extending its market leadership and is optimistic about its growth trajectory, aiming to outpace the market and continue gaining market share.
For a detailed look at Ciena Corp (NYSE:CIEN)'s financials and operational performance, investors and analysts can access supplemental materials and a live web broadcast discussing the unaudited fiscal fourth quarter 2023 results on the company's website.
Value investors and potential GuruFocus.com members interested in Ciena Corp (NYSE:CIEN)'s financial journey can find more in-depth analysis and updates on GuruFocus.com, where we provide comprehensive insights into the company's performance and market position.
Explore the complete 8-K earnings release (here) from Ciena Corp for further details.
This article first appeared on GuruFocus.
