Ciena reported Q4 revenue of $82.0 million, representing an 8.5% sequential increase, and an increase of 16.1% over the same period a year ago. Ciena’s reported net loss (GAAP) for Q4 was $495.1 million, or a net loss of $0.87 per share. This loss includes a goodwill impairment of $371.7 million and compares to a GAAP net loss of $115.0 million, or a net loss of $0.24 per share, in the same period a year ago. Gross margin improved from 24.9% in Q3 to 29.5% in Q4. During the quarter, Ciena reduced ongoing research and development, sales and marketing and general and administrative operating expenses by 9% sequentially. The company said 35% of the quarter’s total revenue resulted from recently acquired products targeting high-value data and service delivery applications.
For the year, Ciena’s revenue totaled $298.7 million, representing an increase of 5.5% over 2003 revenue of $283.1 million. On a GAAP basis, Ciena’s reported net loss for the fiscal year was $789.5 million, or a net loss of $1.51 per share. This compares to a GAAP net loss of $386.5 million, or a net loss of $0.87 per share, in fiscal 2003.
“Our fiscal fourth quarter was significant in a number of ways: we delivered stronger-than-expected revenue growth and improved gross margin, and we lowered our cash burn,” said Gary Smith, Ciena’s president and CEO. “There is more work to be done, but we have made meaningful progress in a number of strategic areas. In addition to expanding the breadth of product we are selling to existing customers, we also have developed new channel partnerships. These actions support our specialist approach to the market and our focus on specific applications that have a major impact on our customers’ businesses.”
As for its outlook, Ciena said it expects first quarter revenue to increase by between 7% to 10%. http://www.ciena.com
