Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$CIEN said it sees revenue growing between 5% and 7% over the next three years, and non-GAAP EPS growth in the 14-16% range. Ciena confirmed its long-term target of achieving 15% adj. operating margin on annualized basis. In each of the next three years, annual free cash flow generation is estimated to be about 60-70% of adjusted operating income.
$CIEN expects to record revenues in the range of $625MM to $655MM in the first quarter of fiscal 2018, and gross margin in the low to mid 40s range. Operating expense is estimated to be $238MM. The dynamic of high startup costs related to market share expansion, and the corresponding low margins is expected to continue in the next two quarters.
After reporting 4Q17 earnings results, $CIEN said its Optical Systems business and global network services have been identified as the key growth drivers, going forward. Ciena intends to leverage its competitive advantage in the key markets to expand market share. The total value of share repurchases planned for fiscal 2018 is approximately $100MM.
$CIEN has authorized a program to repurchase up to $300MM of its common stock by 2020-end. The share buyback will be funded with cash-on-hand or cash generated from operations. The amount and timing are subject to factors such as liquidity, cash flow, stock price and market conditions.
Revenues from $CIEN’s Networking Platforms segment, which accounts for the major chunk of its income, advanced 6% YoY to $599MM in the fourth quarter of 2017. Revenues from Software and Software-related Services grew 11% to $42MM, while those from the Global Services division declined 8% to about $104MM.
$CIEN, a provider of communication technology, reported a sharp growth in 4Q17 profit as it recorded a $1.12Bil income tax benefit related to reversal of a deferred tax asset valuation allowance. Earnings surged to $7.32 per share from $0.25 per share in 4Q16. Non-GAAP EPS was $0.46, up 5% compared to last year. Revenues rose 4% annually to $744MM.
$CIEN said Colt Technology Services has deployed $CIEN’s 6500 Converged Packet Optical Platform to help meet higher bandwidth demands. The Asia-Pacific-wide deployment on the Colt IQ Network began in Sept. 2017 and will support Colt’s growth across key Asia Pacific markets as well as help strengthen intercontinental connections into Europe.
$CIEN said 3Q17 was its largest quarter ever for WaveServer, keeping the company on track to deliver over $100MM in revenue in 2017 for the platform. $CIEN also added 14 new WaveServer customers in the quarter, bringing the total to 56. Additionally, the company also had a strong quarter in packet networking, which was up about 25% sequentially.
Network strategy and technology company $CIEN reported a 78.8% jump in its 3Q17 earnings, helped by higher revenue. Net income increased to $60.01MM or $0.39 per share from $33.54MM or $0.23 per share a year earlier. Revenue for the quarter climbed 8.6% to $728.7MM. On an adjusted basis, $CIEN reported an EPS of $0.51 per share.
$CIEN appointed William Fathers to its BoD. Fathers also serves on the BoD of Cologix Inc. Fathers currently serves as the Senior Operating Partner responsible for investments in Communications Infrastructure at Stonepeak Infrastructure Partners.
$CIEN said terrestrial and AKORN submarine networks of $ALSK has been upgraded with the company to improve internet access and provide secure, reliable connectivity. The network upgrades will also support demand for mobile broadband services and serve as a cloud enablement platform for $ALSK businesses.
Network technology company $CIEN has announced an exchange offer for its outstanding 3.75% convertible senior notes due 2018, to provide the company with cash settlement options upon conversion election by holders. The offer is for exchange of the notes for a new series of 3.75% convertible senior notes due 2018.
In EMEA, $CIEN continued to see more stability, with the region growing 10% YoY in 2Q17. For Waveserver platform in Converged Packet Optical products, revenue is beginning to accelerate gaining six new customers in the quarter. Consequently, $CIEN now believes the revenue from Waveserver to exceed the previous projection of $50-100MM for FY17.