While Cisco’s parallel quarter raised alarm bells on the street, Ciena’s report today may not have been as big as the rest of their year has been but it wasn’t bad either. Revenues came in ahead of expectations, but higher costs brought down earnings below what analysts were looking for. Here’s a table of the company’s numbers in some context.
| $ in millions | FQ4/12 | FQ1/13 | FQ2/13 | FQ3/13 | FQ4/13 | FQ1/14 (guidance) |
|---|---|---|---|---|---|---|
| -Converged Packet-Optical | 238.1 | 240.0 | 294.3 | 302.0 | 350.9 | |
| -Packet Networking | 47.3 | 45.8 | 54.2 | 61.6 | 61.2 | |
| -Optical Transport | 71.8 | 57.6 | 57.4 | 66.2 | 52.6 | |
| -Software and Services | 108.3 | 109.7 | 101.8 | 108.6 | 118.7 | |
| Revenue | 465.5 | 453.1 | 507.7 | 538.4 | 583.4 | 515-545 |
| Adj. OPEX | 191.8 | 176.6 | 197.4 | 190.4 | 210.5 | ~205 |
| Adj. GM% | 42.7% | 44.6% | 42.5% | 43.6% | 40.8 | low 40%s |
| Adj. EPS | -0.07 | 0.12 | 0.02 | 0.23 | 0.16 |
Converged packet-optical revenues clearly drove the quarter’s results. Forward revenue guidance was a bit more conservative than hoped, but still straddled expectations. There wasn’t talk of demand suddenly dropping off unexpectedly in October as there was at Cisco, as backlogs remained large and the pricing environment held steady.
The higher expenses both this quarter and projected for next comes in part from the product development side, although they weren’t too specific about it yet. But the rest actually came largely from the effects of stronger Q4 order flow, which may have brought down EPS but for reasons opposite to the worries the street may have had following Cisco.
Ciena also said it would be moving to the New York Stock Exchange just before Christmas.
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