Ciena Corporation (NYSE: CIEN) reported its unaudited financial results for the fiscal third quarter of 2024, noting a significant 11.8% year-over-year revenue decline to $942.3 million, driven by continued challenges with service providers but partially offset by growing momentum with cloud customers and improvements in its software and services segments.
The company’s revenue for the quarter reached $942.3 million, down 11.8% compared to $1.07 billion in the same period last year. GAAP net income came in at $14.2 million, or $0.10 per diluted share, a decrease from $29.7 million, or $0.20 per share, a year ago. Adjusted (non-GAAP) net income was $50.8 million, or $0.35 per share, compared to $89.1 million, or $0.59 per share, last year. The decline in revenue and profitability reflects ongoing challenges with service providers, although Ciena noted growth with cloud providers.
Ciena’s Networking Platforms segment, which includes optical networking and routing and switching, experienced a significant revenue drop to $699.5 million from $846.6 million. Global Services and Blue Planet Automation Software, however, posted slight improvements in revenue. Ciena also repurchased 0.6 million shares of stock for $29 million during the quarter.
The company remains optimistic about long-term growth potential due to increasing demand for cloud and AI-capable infrastructure.
• Total revenue: $942.3 million, down 11.8% year-over-year.
• GAAP net income: $14.2 million, down from $29.7 million in Q3 2023.
• Adjusted net income: $50.8 million, down from $89.1 million in Q3 2023.
• Optical networking revenue: $606.8 million, down from $719.0 million.
• Routing and switching revenue: $92.7 million, down from $127.6 million.
• Global Services revenue: $133.8 million, up from $129.3 million.
• Blue Planet Automation Software revenue: $25.8 million, up from $13.1 million.
• Gross margin increased to 42.9% (GAAP) and 43.7% (non-GAAP).
• Cash and investments: $1.2 billion.
• Total headcount: 8,781 employees.
“We delivered strong results for the fiscal third quarter that reflect growing momentum with cloud providers and continued gradual recovery with service providers,” said Gary Smith, president and CEO of Ciena.
