Ciena Corporation (NYSE:CIEN) Q4 2019 Earnings Conference Call - Final Transcript

Dec 12, 2019 • 08:30 am ET


Ciena Corporation (NYSE:CIEN) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Ciena Fiscal Q4 2019 Financial Results Call [Operator Instructions]

I'd now like to hand the conference over to -- today to Mr. Gregg Lampf, Vice President, Investor Relations. Please go ahead.

Gregg Lampf

Thank you, Sharon. Good morning, and welcome to Ciena's 2019 fiscal fourth quarter and year-end review. With me today is Gary Smith, President and CEO; and Jim Moylan, CFO. Scott McFeely, our Senior Vice President of Global Products and Services, will join us for the Q&A portion of today's call.

In addition to this call and the press release, we have posted to the Investor section of our website an accompanying investor presentation that reflects this discussion as well as certain highlighted items from the quarter and fiscal year.

Our comments today speak to our view on current market dynamics and how we're addressing the opportunity in front of us, our Q4 and fiscal 2019 performance, as well as a discussion of our long-term financial target and near-term outlook. Today's discussion includes certain adjusted or non-GAAP measures of Ciena's results of operations. A detailed reconciliation of these non-GAAP measures to our GAAP results is included in today's press release.

Before turning the call over to Gary, I'll remind everyone that during this call, we'll be making certain forward-looking statements. Such statements, including our guidance and long-term financial targets are based on current expectations, forecasts and assumptions regarding the company and its markets, which include risks and uncertainties that could cause actual results to differ materially from the statements discussed today.

These statements should be viewed in the context of the risk factors detailed in our most recent 10-Q filing and in our upcoming 10-K filing. Our 10-K is required to be filed with the SEC by December 30, and we expect to file by that date. Ciena assumes no obligation to update the information discussed in this conference call, whether as a result of new information, future events or otherwise.

With that, I'll turn it over to Gary.

Gary B. Smith

Thanks, Gregg, and good morning, everyone.

Today, we reported strong fiscal fourth quarter results, rounding out an extraordinary year of top and bottom line financial performance and leading market share gains. For the full fiscal year, we again delivered industry-leading growth and profitability, including 15% revenue growth and greater than 50% growth in adjusted EPS. We delivered 13.1% adjusted operating margin for the year and took important steps during the year that will drive continued leverage and improvement.

We also had a very strong year for cash generation with more than $413 million in cash from operations, ending the fiscal year with over $1 billion in cash and investments. We frankly had a phenomenal year by any measure, highlighting our clear market leadership, and most importantly, positioning us to continue delivering profitable growth going forward.

We are entering 2020 with tremendous confidence and have strong visibility into our business, prevailing market dynamics and key customer relationships. We are the industry's