2Settimana·

Ciena Earnings Q3

$CIEN (+2,49%)


📊 Turnover & growth

  • Total turnover1.219 billion USD (+29% YoY)
  • → Strong growth, primarily driven by cloud providers (+94 % YoY) and international markets (EMEA +38 %, APAC +24 %).
  • Segment mix:
  • Optical NetworkingUSD 815.5 million (66.9% of sales)
  • Routing & SwitchingUSD 125.9 million (10.3 %)
  • Software & ServicesUSD 90.0 million (7.4 %)
  • Global ServicesUSD 160.2 million (13.1 %)

💰 Profitability (non-GAAP)

Key figureQ3 FY25Q3 FY24Meaning


Gross margin

41,9 %

43,7 %

Slight decline, presumably due to product mix (more hardware, less high-margin software).

Operating costs

USD 380.2 million

USD 336.0 million

+13 %, partly due to higher sales and development expenses.

Operating margin

10,7 %

8,0 %

Significant improvement thanks to jump in sales and efficiency.

EBITDA

USD 158.0 million

USD 98.5 million

+60 %, shows strong operating leverage.

EPS

USD 0.67

0.35 USD

Almost doubled - reflects higher profits and share buybacks

💵 Cash flow & balance sheet

  • Operating cash flowUSD +174 million (previous year: USD -159 million)
  • Free cash flow: USD +135 million (previous year: USD -179 million) → significant improvement due to higher profitability and better working capital.
  • DSO (days sales outstanding): 88 days (previous year: 100) → Customers pay faster.
  • Inventory turns: 2.7 (previous year: 1.8) → Inventory turnover accelerates, capital commitment decreases.
  • Net debtUSD 204 million (previous year: USD 401 million) → Debt almost halved.
  • Gross leverage: 2.81x (previous year: 3.08x) → lower risk.

📌 Interpretation

  • Strong sales growth with simultaneous improved operating efficiency.
  • Margin pressure at gross level due to product mix, but operating margin increases thanks to economies of scale.
  • Cash flow turnaroundfrom negative to strongly positive - an important indicator of financial health.
  • Balance sheet strengthened: less debt, faster inventory turnover, shorter payment terms.
  • Shareholder return: buyback of ~1m shares for USD 81.8m.


*summarized with AI


Source

Quarterly Results - Ciena Corporation

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