SEPTEMBER 3, 2009 -- Ciena Corp. (NASDAQ: CIEN) has announced unaudited results for its fiscal third quarter ended July 31, 2009. Revenue for the fiscal third quarter 2009 totaled $164.8 million, representing a 14% sequential improvement compared to fiscal second quarter 2009 revenue of $144.2 million.
On the basis of generally accepted accounting principles (GAAP), Ciena’s net loss for the fiscal third quarter 2009 was $(26.5) million, or $(0.29) per common share. This compares to fiscal second quarter 2009 GAAP net loss of $(503.2) million or $(5.53) per common share. (Ciena’s GAAP net loss for the fiscal second quarter 2009 includes a non-cash charge of $455.7 million for impairment of goodwill. This charge does not impact the company's normal business operations nor will it result in any current or future cash expense, Ciena asserts.)
Ciena’s adjusted (non-GAAP) net loss for the fiscal third quarter 2009 was $(4.8) million, or $(0.05) per common share. This compares to fiscal second quarter 2009 adjusted (non-GAAP) net loss of $(22.5) million, or $(0.25) per common share.
“We delivered significant sequential improvement in our fiscal third quarter across all major financial performance metrics, including revenue, gross margin, and operating results,” said Gary Smith, Ciena’s CEO and president. “Through the challenging environment of the last 12 months, we’ve managed the business with the objective of balancing operating performance with a disciplined approach to strategic investment.”
Third quarter 2009 performance summary
- $164.8 million in revenue, representing sequential growth of 14%, driven by sequential improvements in the Optical Service Delivery and Carrier Ethernet Service Delivery portfolios.
- Non-U.S. customers contributed 37% of total revenue.
- At 37% of total revenue, three customers each accounted for greater than 10% of revenue.
- GAAP gross margin of 45%.
- Adjusted (non-GAAP) gross margin of 46% excludes share-based compensation costs and amortization of intangible assets.
- GAAP net loss of $(26.5) million or $(0.29) per common share.
- Adjusted (non-GAAP) net loss of $(4.8) million or $(0.05) per common share.
- Generated $3.5 million in cash from operations during the quarter, ending the quarter with cash, cash equivalents and short- and long-term investments of $1.1 billion.
Third quarter 2009 customer and product summary
- In partnership with NYSE Euronext, Ciena announced plans to implement the first 100G network enabling NYSE Euronext to provide both the speed and ultra-low latency to facilitate unparalleled execution of equities quotes, trades, options data and other financial transactions in the U.S., Europe and globally.
- Clearwire will use Ciena’s Carrier Ethernet Service Delivery platforms for its strategic backhaul and base station switching to support its CLEAR mobile 4G WiMAX services in several markets nationwide.
- Telehouse Europe selected Ciena’s CN 4200 FlexSelect Advanced Services Platform to enable connectivity for the new Telehouse 3 data storage facility in Magny-les-Hameaux near Paris.
- GTS Central Europe deployed Ciena’s Carrier Ethernet Service Delivery solutions in its aggregation and access network layers to allow the operator to offer a broad range of carrier-class services while leveraging the simplicity and cost efficiency of Ethernet.
- XO Communications accepted the “Wholesale Service Innovation” award from Global Telecoms Business for its Ethernet Hub Service enabled by Ciena’s Carrier Ethernet switching solutions.
- Urban Light Networks deployed Ciena’s CN 4200 RS in a new, next-generation network to support low-latency, capacity-rich service delivery.
- Mzima Networks will use Ciena’s Carrier Ethernet Service Delivery portfolio across Mzima’s next-generation IP ntwork.
- Lifeline Data Centers deployed Ciena’s CN 4200 to provide high-performance, low-latency connectivity over dark fiber between its existing data center in downtown Indianapolis and its new 460,000-square foot state-of-the-art data center facility twelve miles outside of the city.
- MAGPI (Mid-Atlantic Gigapop for Internet2) implemented a CN 4200-based network to support high-performance network connectivity among multiple research labs located at Princeton University’s Forrestal Campus and the U.S. Department of Energy’s Energy Sciences Network 4.
Business outlook
“Industry sentiment has improved somewhat over the first half of the calendar year as a result of what seems to be a stabilizing macro environment combined with continued pressure on service providers to increase network capacity and deliver more services,” said Smith. “While we continue to believe our network vision and portfolio align well with our customers’ current and future business priorities, customers in general continue to spend cautiously. As result, we expect our fiscal fourth quarter revenue will be roughly flat with our fiscal third quarter level.”