[ACCESSWIRE]
LONDON, UK / ACCESSWIRE / September 7, 2016 / Active Wall St. announces its post-earnings coverage on Ciena Corporation (NYSE: CIEN). The company posted its financial results for the third quarter fiscal 2016 (Q3 FY16) on September 01, 2016. Ciena reported an 11.2% y-o-y growth in its revenue and its earnings outperforming market expectation. Register with us now for your free membership at: http://www.activewallst.com/register/.
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Earnings Reviewed
For the three months ended on July 31, 2016, Ciena reported total revenue of $670.55 million compared to $602.93 million recorded at the end of Q2 FY16. The market had expected the company to report total revenue of $672.0 million.
The Hanover, Maryland-based company recorded GAAP net income of $33.55 million, or $0.23 per diluted common share, for the reported quarter, which was above $23.63 million, or $0.19 per diluted common share, recorded in Q3 FY15. On non-GAAP basis, the company's net income for Q3 FY16 came in at $67.64 million, or $0.42 per diluted common share compared to net income of $50.73 million, or $0.37 per diluted common share, beating market expectation of $0.38 per diluted common share.
"We posted strong results on all financial operating metrics in our fiscal third quarter, continuing a trend of consistently improving financial performance and demonstrating the value of having a diversified business to manage through market dynamics," said Gary B. Smith, president and CEO of Ciena.
"Through strategic investments to broaden our portfolio, market application and customer and geographic base, we have positioned Ciena to deliver sustainable long-term growth and increased profitability," he further commented.
The company's non-GAAP gross profit margin for the reported quarter stood at 46.8%, which was above 45.3% recorded in the year ago period. Furthermore, non-GAAP operating margin improved to 13.5% in Q3 FY16 from 11.8% in Q3 FY15.
Segment-wise
The network specialist's Networking Platforms segment revenue for Q3 FY16 grew to $540.9 million, or 80.6% of the total revenue from $482.7 million, 80.1% of the total revenue in Q3 FY15.
Ciena's Global Services recorded a relatively flat revenue growth to end Q3 FY16 at $98.1 million, or 14.7% of the total revenue, versus $93.7 million, or 15.5% of the total revenue, in the previous year comparable quarter.
The company's quarterly revenues from Software and Software-Related Services segment also improved to $31.6 million, or 4.7%, in Q3 FY16 from $26.5 million, or 4.4% of the total revenue, in Q3 FY15.
Regional Contribution
During the reported quarter, revenues from North America were $438.0 million, or 65.3% of the total revenue, compared to $389.6 million, or 64.6% of the total revenue in Q3 FY15. Additionally, the U.S. contributed 61.1% of total revenue during the reported period.
Revenues from Europe, Middle East and Africa regions, which contributed 15.5% to total revenue, grew to $104.3 million in Q3 FY16 from $93.2 million in prior year period. Furthermore, revenues from the Asia Pacific region surged to $81.7 million, or 12.2 % of the total revenue, during Q3 FY16 from $55.0 million, or 9.1% of the total revenue, in the year ago period.
However, the Caribbean and Latin America revenues witnessed a decline from $65.1 million, or 10.8% of the total revenue, in Q3 FY15 to $46.6 million, or 7.0% of the total revenue, in the reported quarter.
Cash Flow & Balance Sheet
Ciena had $854.92 million in cash and cash equivalents as on July 31, 2016 compared to $697.09 million at the close of books on July 31, 2015.
Outlook
For Q4 FY16, Ciena expects revenue be in the range of $700 million to $730 million with non-GAAP gross margin in mid-40s. The company's management further anticipates non-GAAP operating expenses to be approximately $230 million to $235 million.
Stock Performance
Ciena's shares were slightly up 0.39% ending the trading session at $22.98 on September 06, 2016. The stock recorded a total volume of 2.41 million shares. In the last one month and the previous six months, the company's share price has gained 13.65% and 38.18%, respectively.
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SOURCE: Active Wall Street