Exceeded expectations! Optical communications equipment maker Ciena generated revenue of $971 million in the fiscal fourth quarter
Release:
Release:
A few days ago, optical communication equipment manufacturer Ciena announced its financial results for the fourth quarter of fiscal 2022. Ciena sales for the quarter were $971 million, down 6.8% from $1,042 million in the year-ago quarter; gross margin was 44.7%, down 1.1% year-over-year; and net income was down 31.4% year-over-year to $90.9 million.
By business, Ciena's fourth-quarter network platform sales revenue was approximately $753 million, down 9.18% year-over-year, of which routing and switching product sales increased from $74.2 million to $102.8 million; platform software and services sales revenue increased 8.32% year-over-year to approximately $71.6 million; and global services sales revenue was approximately $126 million, down 1.05% from $127 million in the same period last year.
In addition, Ciena backlogged orders amounted to $4.2 billion, with the main deferred orders appearing in optical transmission equipment. For the future development of the company's performance, Ciena said that the company expects revenue in the first quarter of fiscal 2023 to remain between $9.1-990 million; gross margin is expected to be less than 40%; and revenue for the full year of fiscal 2023 will increase by 16%-18%.
Ciena is a global telecommunications system provider founded in 1992, the main business includes telecommunications equipment, telecommunications software, services, etc., the company's products are widely used in communication providers, cable operators, governments and enterprises.
It is worth noting that after a severe decline in the third quarter, Ciena set the company's fourth-quarter sales forecast at between $800 million and $880 million, so although Ciena's fourth-quarter results fell year-on-year, sales exceeded the company's expectations.
According to Ciena's third-quarter financial report, the company's third-quarter revenue was $868 million, down 12% year-on-year; net profit was $10.5 million, down 95% year-on-year.
Regarding the rare plunge in performance, CEO Gary Smith said, "Due to the delay in the delivery of specific components from a small number of suppliers, the company's delivery to customers has been severely affected, and the performance has been disproportionately affected." "Directly dumped the performance cauldron to the supplier.
At the same time, Ciena also said that in addition to suppliers, the company's practice of pushing up product costs in order to find alternative products has also caused a decline in profits to some extent, which will also make Ciena unable to achieve its previous performance expectations this fiscal year.
Compared with the declining performance, Ciena products and services have achieved good market feedback in recent years.
In 2021, Ciena announced a partnership with CityFibre, the UK's largest standalone all-fibre platform, to successfully deploy the first 800Gb/s backbone wavelength network. The project is expected to cover around 8 million UK fixed locations and sites through an FTTP-based broadband ISP network by the end of 2025.
In 2022, Ciena assisted African telecom operator EASSy in upgrading its submarine cable network to 36Tb/s through its GeoMesh Extreme solution.
The network is managed by a Management, Control and Planning (MCP) domain controller provided by Ciena. By adopting a software-driven approach to automation, Ciena says EASSy has achieved maximum operational proficiency and service agility while reducing operating costs. At the same time, the network capacity of the entire network system was doubled from 18Tbps to 36Tbps, improving the efficiency of the fiber optic system and reducing the transportation cost per bit.
In terms of WDM business, Ciena also performed very well in the market.
In July 2022, international research institute Omdia released the 100G+ coherent optical device port report for the first quarter of this year. The report revealed that although the current 400G market deployment is still far lower than 100G and 200G, with the steady growth of 400G port shipments since 2021, it is expected that the compound annual growth rate (CAGR) of 400G port shipments in the WDM market will reach 31.5% in the next five years, and 400G ports will become the mainstream choice in the market.
According to the report data, in the first quarter of this year, global 400G port shipments grew rapidly, of which Ciena's 400G WDM market share reached 28%, second only to Huawei's 35%, and the other two communication equipment manufacturers Cisco and ZTE had a share of 18% and 9% respectively.
By business, Ciena's fourth-quarter network platform sales revenue was approximately $753 million, down 9.18% year-over-year, of which routing and switching product sales increased from $74.2 million to $102.8 million; platform software and services sales revenue increased 8.32% year-over-year to approximately $71.6 million; and global services sales revenue was approximately $126 million, down 1.05% from $127 million in the same period last year.
In addition, Ciena backlogged orders amounted to $4.2 billion, with the main deferred orders appearing in optical transmission equipment. For the future development of the company's performance, Ciena said that the company expects revenue in the first quarter of fiscal 2023 to remain between $9.1-990 million; gross margin is expected to be less than 40%; and revenue for the full year of fiscal 2023 will increase by 16%-18%.
Ciena is a global telecommunications system provider founded in 1992, the main business includes telecommunications equipment, telecommunications software, services, etc., the company's products are widely used in communication providers, cable operators, governments and enterprises.
It is worth noting that after a severe decline in the third quarter, Ciena set the company's fourth-quarter sales forecast at between $800 million and $880 million, so although Ciena's fourth-quarter results fell year-on-year, sales exceeded the company's expectations.
According to Ciena's third-quarter financial report, the company's third-quarter revenue was $868 million, down 12% year-on-year; net profit was $10.5 million, down 95% year-on-year.
Regarding the rare plunge in performance, CEO Gary Smith said, "Due to the delay in the delivery of specific components from a small number of suppliers, the company's delivery to customers has been severely affected, and the performance has been disproportionately affected." "Directly dumped the performance cauldron to the supplier.
At the same time, Ciena also said that in addition to suppliers, the company's practice of pushing up product costs in order to find alternative products has also caused a decline in profits to some extent, which will also make Ciena unable to achieve its previous performance expectations this fiscal year.
Compared with the declining performance, Ciena products and services have achieved good market feedback in recent years.
In 2021, Ciena announced a partnership with CityFibre, the UK's largest standalone all-fibre platform, to successfully deploy the first 800Gb/s backbone wavelength network. The project is expected to cover around 8 million UK fixed locations and sites through an FTTP-based broadband ISP network by the end of 2025.
In 2022, Ciena assisted African telecom operator EASSy in upgrading its submarine cable network to 36Tb/s through its GeoMesh Extreme solution.
The network is managed by a Management, Control and Planning (MCP) domain controller provided by Ciena. By adopting a software-driven approach to automation, Ciena says EASSy has achieved maximum operational proficiency and service agility while reducing operating costs. At the same time, the network capacity of the entire network system was doubled from 18Tbps to 36Tbps, improving the efficiency of the fiber optic system and reducing the transportation cost per bit.
In terms of WDM business, Ciena also performed very well in the market.
In July 2022, international research institute Omdia released the 100G+ coherent optical device port report for the first quarter of this year. The report revealed that although the current 400G market deployment is still far lower than 100G and 200G, with the steady growth of 400G port shipments since 2021, it is expected that the compound annual growth rate (CAGR) of 400G port shipments in the WDM market will reach 31.5% in the next five years, and 400G ports will become the mainstream choice in the market.
According to the report data, in the first quarter of this year, global 400G port shipments grew rapidly, of which Ciena's 400G WDM market share reached 28%, second only to Huawei's 35%, and the other two communication equipment manufacturers Cisco and ZTE had a share of 18% and 9% respectively.