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Sep. 3, 2015, 10:00 AM
- Ciena (NYSE:CIEN) has sold off after missing FQ3 revenue estimates and beating on EPS. The company suggests "short-term revenue headwinds related to the timing of network implementations at certain large service provider customers" are to blame for the top-line miss.
- FQ4 guidance is for revenue of $665M-$700M, above a $662.8M consensus. However, the outlook reflects a full quarter's contribution from the Cyan acquisition (closed in early August), something that might not be accounted for by all analyst estimates.
- Along with the numbers, Ciena has appointed Francois Locoh-Donou, the SVP of its Global Products Group since 2011, to the newly-created position of COO, effective Nov. 1. Locoh-Donou will "assume responsibility for Ciena's Global Field Organization, including the global sales and services functions, while retaining his existing responsibility for research and development, product line management, supply chain and network integration functions."
- CEO Gary B. Smith states the COO position was "created to facilitate greater organizational alignment between our product and customer teams." The move comes shortly after Ciena announced sales chief Philippe Morin is stepping down.
- Segment performance: FQ3 converged packet optical (integrated Ethernet/optical networking gear) revenue +7% Y/Y to $408M. Packet networking (Ethernet switches) -18% to $57.2M. Optical transport -44% to $17.5M. Software/services -1% to $120.2M. The U.S. was 59.8% of revenue, and one customer (AT&T?) made up 20% of revenue.
- Financials: Boosting EPS: Adjusted gross margin was 45.3%, up 90 bps Q/Q and 100 bps Y/Y, and above guidance of 43%; FQ4 guidance is at 44%. Also helping: Adjusted operating expenses fell 2% Y/Y to $202.1M. Ciena ended FQ3 with $927M in cash/investments, and $1.46B in long-term debt.
- FQ3 results, PR
- Update (12:17PM ET): Ciena is now up 3% post-earnings. Earnings call commentary could be helping.
Sep. 3, 2015, 7:03 AM
- Ciena (NYSE:CIEN): FQ3 EPS of $0.37 beats by $0.03.
- Revenue of $602.93M (-0.1% Y/Y) misses by $26.94M.
Sep. 2, 2015, 5:30 PM
Aug. 26, 2015, 11:05 AM
- "Our checks indicate that Ciena (NYSE:CIEN) has taken share from Fujitsu and Coriant at its top customer AT&T for its long haul and metro deployments, and will continue to do so," writes Raymond James' Simon Leopold, upgrading to Outperform. "We see upside from improved diversity, specifically with non-telco customers, which drove strength in F1Q15 at over 30% of sales."
- Leopold also sees IP networking initiatives from the likes of Comcast acting as a positive, and expects demand from Web/cloud customers to pick up again, aided by the ramp of Ciena's Waveserver data center interconnect solution (competes against Infinera's Cloud Xpress). The recent Verizon 100G metro deal is considered a nice reference win, but "a modest sales contributor."
- Separately, Ciena has announced Korea's SK Telecom is deploying its new 5430 packet-optical (integrated Ethernet/optical networking) system. Ciena claims the 5430 delivers "up to five times more port density, four times switching capacity and 60 percent reduction of power consumption per switched Gb/s" than the prior-gen 5410.
Aug. 20, 2015, 12:09 PM
- With investors fleeing to safety and asking questions later - Chinese macro concerns have been playing a role - tech stocks with high betas (and sometimes also high multiples and big 2014/2015 gains) are among the biggest losers as the S&P drops 1.1%, and the Nasdaq 1.7%.
- Noteworthy decliners include action camera leader GoPro (GPRO -6%), security tech plays Palo Alto Networks (PANW -4.9%), FireEye (FEYE -4.5%), CyberArk (CYBR -5.7%), Qualys (QLYS -5.1%), Imperva (IMPV -6%), and Vasco (VDSI -4.2%), and driver-assistance tech leader Mobileye (MBLY -6%).
- Others include optical networking hardware vendors Ciena (CIEN -5%) and Infinera (INFN -7.3%), optical component vendors NeoPhotnics (NPTN -5.9%) and Oclaro (OCLR -6.7%), data management software firm Varonis (VRNS -5.5%), programmatic ad-buying platform Rocket Fuel (FUEL -7.4%), DNS/IP address hardware vendor Infoblox (BLOX -5.1%), haptic tech developer Immersion (IMMR -6.2%), and solar microinverter maker Enphase (ENPH -7.2%).
- Many Chinese tech stocks are also seeing heavy losses.
Aug. 13, 2015, 5:38 PM
- Philippe Morin, Ciena's (NYSE:CIEN) SVP of worldwide sales and field operations, is stepping down at the end of October. No word yet on his replacement.
- Morin joined Ciena through its 2010 acquisition of Nortel's metro Ethernet unit, and has been its sales chief since 2011.
Jul. 23, 2015, 2:56 PM
- Application delivery controller/security hardware vendor F5 (FFIV +6.9%) beat FQ3 estimates on the back of strong software sales, and provided above-consensus FQ4 EPS guidance (revenue was in-line). With growing 100G long-haul optical deployments serving as a tailwind, optical networking hardware vendor Infinera (INFN +9.6%) beat Q2 estimates and provided strong Q3 guidance.
- Also: Optical component vendor Alliance Fiber (AFOP +16%) beat estimates and offered healthy guidance. Strong datacom component demand from cloud service providers was cited.
- A slew of telecom/networking equipment, component, and chip vendors are higher on a day the Nasdaq is down 0.4%. The list includes Infinera rival Ciena (CIEN +1.6%), F5 rival Radware (RDWR +3.3%), and Alliance Fiber peer NeoPhotonics (NPTN +4.7%). Others include Ciena acquisition target Cyan (CYNI +1.8%) and chipmakers Cavium (CAVM +3.6%), PMC-Sierra (PMCS +3%), EZchip (EZCH +2.8%), and InPhi (IPHI +3.7%).
- Broader gains for chip stocks - the Philadelphia Semi Index is up 1.7% after selling off hard yesterday - are likely helping the chipmakers. Cisco, meanwhile, is up 2.2% after striking a deal to sell its share-losing set-top unit to Technicolor.
- During F5's earnings call, new CEO Manny Rivelo stated F5 now leads the virtual (software-based) ADC market, which has sometimes been seen as a major long-term threat to its ADC hardware business, and noted the company saw a 20% Y/Y increase in its deferred revenue balance (driven by services/subscription growth) to $743M. He also disclosed sales chief Dave Feringa is stepping down on Oct. 1; his successor will be named shortly.
- On Infinera's call, CEO Tom Fallon mentioned the company has now invoiced 12 customers for its new Cloud Xpress data center interconnect platform, up from 7 three months ago. For now, long-haul optical still makes up over 90% of revenue - Cloud Xpress growth, the pending launch of a metro aggregation product, and (provided it's approved) the Transmode acquisition should change that. 3 customers accounted for over 10% of Q2 revenue.
Jun. 4, 2015, 2:07 PM
- Though the Nasdaq is down 1%, Ciena (CIEN +1.4%) remains higher after beating FQ2 estimates on the back of strong packet-optical (integrated Ethernet/optical networking) hardware sales. FQ3 revenue guidance is at $610M-$640M, in-line with a $632.2M consensus.
- Financials: Boosting FQ2 EPS: Gross margin was 44.4%, +30 bps Q/Q and +130 bps Y/Y, and above guidance of 42%-43%; FQ3 GM guidance is at 43%. Also helping: Operating expenses (non-GAAP) only rose by $1.6M Y/Y (less than 1%) to $207.9M. On a GAAP basis, R&D spend totaled $105.2M, sales/marketing $82.5M, and G&A $30.3M. Adjusted op. margin rose to 10.9% from 6.8% in FQ1 and 6.2% a year ago.
- Business performance: Converged packet optical revenue (69.6% of total) +21% Y/Y to $432.9M. Packet networking (Ethernet switches) -20% to $53.3M. Optical transport -44% to $16.5M. Software/services +11% to $118.9M.
- Georgaphic/customer performance: North America was 63.9% of revenue (U.S. was 59.1%), EMEA 16.4%, Asia-Pac 12%, and Caribbean/Latin America 7.7%. AT&T accounted for 19% of sales, and was the sole 10%+ customer. UBS likes the fact North American sales rose 20% Q/Q in spite of AT&T revenue (recently under pressure) remaining roughly flat.
- Shares made a new 52-week high of $25.49 this morning before pulling back a bit.
- FQ2 results, PR
Jun. 4, 2015, 7:01 AM
- Ciena (NYSE:CIEN): FQ2 EPS of $0.35 beats by $0.11.
- Revenue of $621.6M (+11.0% Y/Y) beats by $15.07M.
Jun. 3, 2015, 5:30 PM
May 27, 2015, 4:38 AM
- As the telecom-network industry consolidates, Ericsson (NASDAQ:ERIC) is now more open to a bigger M&A deal in order to remain competitive in the market, Bloomberg reports.
- "I see no reason why we, given the right preconditions, would exclude a larger deal," Ericsson Chairman Leif Johansson said in an interview this month. "But as you know, there aren't that many left."
- CEO Hans Vestberg plans to gather with his top managers in June to discuss strategy, and a key area is what the company can do to counter Nokia's recent $16.6B acquisition of Alcatel-Lucent.
- Possible targets: Ciena (NYSE:CIEN), Infinera (NASDAQ:INFN) and Juniper (NYSE:JNPR)
May 20, 2015, 1:30 PM
- MKM's Michael Genovese has hiked his Ciena (CIEN +1.4%) target by $2 to $27 ahead of the company's June 4 FQ2 report. Shares have made fresh 52-week highs.
- Genovese: "We are positive on CIEN because demand for 100G Optical capacity is strong and broad-based across Internet, Cable and Tier 2 carrier customers. Ciena is also seeing good growth in Europe from better distribution. Overall revenue growth should accelerate in FY16 as U.S. Tier 1 demand improves. We also expect [operating margins] to expand in FY15-FY16 to normalized low-double-digit levels."
- The upgrade comes two weeks after Ciena struck a $400M deal ($335M net of cash) to buy carrier SDN software vendor and metro packet-optical hardware rival Cyan (CYNI +1.4%). The deal was widely seen as being software-focused - Wells Fargo argued the advanced software orchestration features of Cyan's Blue Planet SDN platform could help Ciena "capitalize on rising customer demand for open, programmable, and virtualized network architectures over the next several years."
- With Ciena set to given Cyan shareholders consideration equal to 0.224 Ciena shares (89% in stock, 11% in cash), Cyan is following Ciena higher.
May 4, 2015, 12:45 PM
May 4, 2015, 9:16 AM
May 4, 2015, 7:56 AM
- Cyan (NYSE:CYNI) +29.8% premarket after Ciena (NYSE:CIEN) agrees to acquire the networking software company in a cash and stock deal valued at ~$400M; the $4.75/share bid is a 30% premium to CYNI's Friday closing price.
- Ciena says the addition of Cyan "accelerates the availability of a complete solution for our customers to deliver virtualized networks and services on-demand."
- CYNI's stock had run up 46% YTD through Friday.
- Also: Cyan beats by $0.01, beats on revenue
May 4, 2015, 7:09 AM
- Cyan (NYSE:CYNI): Q1 EPS of -$0.14 beats by $0.01.
- Revenue of $36M (+89.1% Y/Y) beats by $2.67M.
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