[ACCESSWIRE]
Upcoming AWS Coverage on Comtech Telecommunications Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 16, 2016 / Active Wall St. announces its post-earnings coverage on Ciena Corp. (NYSE: CIEN). The Company posted its fourth quarter and fiscal 2016 earnings results on December 08, 2016. The developer of high-speed networking technology reported that its revenue grew 3.5% and also surpassed Market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Ciena's competitors within the Communication Equipment space, Comtech Telecommunications Corp. (NASDAQ: CMTL), reported on December 07, 2016, its operating results for Q1 ended October 31, 2016 and confirmed its FY17 guidance. AWS will be initiating a research report on Comtech Telecommunications in the coming days.
Today, AWS is promoting its earnings coverage on CIEN; touching on CMTL. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=CIEN
http://www.activewallst.com/registration-3/?symbol=CMTL
Earnings Reviewed
For the quarter ended on October 31 2016, Ciena reported revenue of $716.2 million compared to $692.0 million for Q4 FY15. Revenue growth was driven by the company's best-ever quarter in APAC, which continues to be driven by strength in India and in submarine applications. Ciena also had a strong quarter in EMEA which was up 20% on a y-o-y basis, and in North America which grew 11% from the year ago same period, exclusive of AT&T. International sales made up 39% of total revenue in Q4 FY16. The Company stated that Q4 2016 was the strongest on record for orders. Ciena ended the reported quarter with a record backlog of $1.15 billion. The company's revenue numbers topped analysts' expectations of $715.9 million.
For FY16, Ciena reported revenue of $2.6 billion compared to $2.4 billion for FY15. Globally, non-Telco sales for the reported year were 31% of revenue, representing an 11% increase on a y-o-y basis. Enterprise sales were up 34% for the year. Direct web scale revenue was up about 25%.
On a GAAP basis, Ciena's net income for Q4 FY16 was $36.6 million, or $0.25 per diluted common share, compared to a GAAP net loss of $13.8 million, or $0.10 per diluted common share, for Q4 FY15. On an adjusted basis, the Company posted net income of $69.4 million, or $0.44 per diluted common share, for the reported quarter compared to an adjusted net income of $67.3 million, or $0.42 per diluted common share, for Q4 FY15. The company missed analysts' expectations for earnings of $0.46 per share.
For FY16, Ciena posted GAAP net income of $72.6 million, or $0.51 per diluted common share, compared to a GAAP net income of $11.7 million, or $0.10 per diluted common share, for FY15. The company for FY16 reported adjusted net income of $214.6 million, or $1.38 per diluted common share, compared to an adjusted (non-GAAP) net income of $179.0 million, or $1.31 per diluted common share for FY15.
Margin Matters
For Q4 FY16, Ciena's adjusted gross margin was 45.2%, up 0.3% from Q4 FY15 adjusted gross margin of 44.9%. The company's operating expense in the reported quarter totaled $234 million. Ciena for Q4 2016 achieved $92 million in adjusted operating profit or a 12.8% adjusted operating margin.
Liquidity and Capital Resources
For the quarter ended on October 31, 2016, the Company generated $137 million in cash from operations and it ended the year with $1.14 billion in cash and investments. The Company generated $290 million from operations in 2016 and $182 million of free cash flow.
Outlook
For Q1 FY17, Ciena expects revenue to be in the range of $615 million to $645 million, consistent with the seasonal reductions in order volume and customer deployment activity. The company estimates Q1 FY17 adjusted gross margin to be mid-40% target range and adjusted operating expense to be in the range of $220 million to $225 million.
Stock Performance
On Thursday, the stock closed the trading session at $23.78, slightly up 0.38% from its previous closing price of $23.69. A total volume of 3.71 million shares have exchanged hands, which was higher than the 3-month average volume of 2.78 million shares. Ciena's stock price rallied 5.04% in the last month, 11.96% in the past three months, and 15.16% in the previous six months. Furthermore, since the start of the year, shares of the company have gained 14.93%. The stock currently has a market cap of $3.34 billion.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street
