Aug. 13, 2014, 2:45 PM
- B. Riley and Piper have downgraded JDS Uniphase (JDSU -8.9%) following its light Sep. quarter outlook. Each cites the impact of soft carrier spending.
- B. Riley's Dave Kang (downgrade to Neutral) notes the AT&T/DirecTV deal has affected Ma Bell's spending (previous), and that industry demand is pressured by a transition to software-defined networking (SDN) architectures that's still in its early stages.
- Kang: "In hindsight, we significantly under-estimated the potential impact of the SDN transition on the telecom equipment industry." He notes the transition is hurting JDS' test equipment/software sales (expected to fall to $160M-$175M in FQ1 from $199M in FQ4) more than its optical component sales. Optical component/laser division sales are expected to total $200M-$210M in FQ1 vs. $196.9M in FQ4.
- On the CC (transcript), CEO Tom Waechter admitted North American carriers "have ratcheted down wireline spending" (echoes of Juniper), and that wireless investments "have been tepid due to rapid changes in network technology architectures." On the other hand, he states component demand "remains healthy with notable strength in Datacom, 100G modulators and China's infrastructure spend."
- Ciena (CIEN -2.7%) and Fabrinet (FN -3%) have joined the ranks of companies following JDS lower. Cisco reports after the bell.
Jul. 23, 2014, 1:45 PM
- Juniper's (JNPR -9.8%) soft Q3 guidance, along with its related commentary on U.S. telco demand, is taking a toll on fellow telecom equipment suppliers Cisco (CSCO -1.2%), Ciena (CIEN -3.2%), Cyan (CYNI -2.5%), Zhone (ZHNE -6.5%) Ruckus (RKUS -1.6%), and Sonus (SONS -3.8%).
- Optical component vendors JDS Uniphase (JDSU -2.9%) and Finisar (FNSR -2%) are also off, as are several chipmakers (previous) with heavy networking/telecom exposure.
- On its CC (transcript), Juniper stated "market dynamics including M&A activity" are affecting the "sequencing and timing" of U.S. carrier projects. Jefferies reported in June AT&T has significantly cut its wireline capex in the wake of the DirecTV deal.
- There has been speculation AT&T is keeping a lid on wireline capex ahead of the full rollout of its ambitious Domain 2.0 initiative, which will feature the launch of software-defined networking (SDN) and network functions virtualization (NFV) platforms.
- Juniper insists it remains well-positioned with the aforementioned U.S. carriers, and that it has "major design wins" for next-gen projects. The company adds demand remains healthy with U.S. federal, cable, and Internet clients.
- The company's router revenue rose 7% Y/Y in Q2 to $617.8M, and its switch revenue rose 25% to $199.8M. Security product revenue fell 8% to $111.6M. The Junos Pulse VPN software ops (about to be sold for $250M) contributed $31.4M in revenue ($15.9M product, $15.5M service).
Jun. 5, 2014, 7:42 AM
- In addition to beating on revenues and EPS, Ciena's margins - adjusted gross of 43.1% and adjusted operating of 6.2% - are also ahead of estimates.
- Q3 revenue guidance of $585M-$615M is better than consensus of $583.3M, with adjusted gross margin expected in the low-mid 40s range.
- CC at 8:30 ET
- CIEN +12.9% premarket
- Previously: Ciena beats by $0.04, beats on revenue
Jun. 5, 2014, 7:03 AM
Jun. 4, 2014, 5:30 PM
Apr. 24, 2014, 12:26 PM
- In addition to beating Q1 estimates, Infinera (INFN +5.9%) guided on its CC (transcript) for Q2 revenue of $160M-$170M and EPS of $0.02-$0.06 vs. a consensus of $156.3M and $0.05. As is its custom, rival Ciena (CIEN +5.8%) is following Infinera higher.
- Thanks to a favorable mix, Q1 gross margin was 41.8%, +40 bps Q/Q and +590 bps Y/Y, and above guidance of 40%. Infinera only forecasts a GM of 39%-41% for Q2 due to the margin pressure caused by new large-footprint deployments, but still expects a low-40s GM for the full year and future margin gains as it fulfills capacity expansion orders for major deployments.
- Strong North American demand allowed revenue to grow 3% Q/Q in seasonally weak Q1. Infinera had two 10%+ customers - a cable MSO and a tier-1 North American carrier, and added one more client for its dense/high-capacity DTN-X optical transmission platform, raising the total to 42.
- Not surprisingly, a positive outlook was provided for the 100G optical market, where the company and Ciena have leading positions. Infinera says it's confident it can outgrow the broader 100G market in 2014.
Mar. 6, 2014, 10:49 AM
- Though Ciena's (CIEN +2.1%) FQ1 revenue was only in-line, its gross margin (43.4%, +260 bps Q/Q and -120 bps Y/Y) and opex ($199.8M, -5% Q/Q and +13% Y/Y) were favorable to guidance for a low-40s GM and $205M in opex. That, in turn, helped EPS beat by $0.07.
- Ciena expects FQ2 revenue of $540M-$570M, in-line with a $561.1M consensus. GM is again expected to be in the low-40s range, and opex is expected to rise to $210M.
- Sales of integrated Ethernet switching/optical networking gear rose 39% Y/Y in FQ1 to $333.4M (62.5% of revenue). Software/services sales -1% to $108.5M; Ethernet switching +13% to $51.7M; optical transport -30% to $40.1M.
- Optical networking rival Infinera (INFN +4.5%) is also higher. The company recently launched a solution it claims can automate/control both the digital switching and optical transport layers of an optical network. The solution, part of a broader trend towards building networks that offer more optical layer intelligence and flexibility, is expected to ship in September.
- Ciena's FQ1 results, PR
Mar. 6, 2014, 7:01 AM| Comment!
Mar. 6, 2014, 12:05 AM
Mar. 5, 2014, 5:30 PM
Dec. 12, 2013, 7:31 AM
- Ciena (CIEN) tumbles 11.5% premarket after a big miss on FQ4 results - reporting adjusted EPS of $0.16 per share vs. expectations of $0.24.
- Adjusted gross margin of 40.8% compares to 43.6% the previous quarter. Adjusted operating margin of 4.7% falls from 8.2% the previous quarter. Operating expenses rose to $210.5M from $190.4M.
- FQ1 revenue guidance of $515M-$545M is inline with Street expectations.
- The company will swap its Nasdaq (NDAQ) listing for one on the NYSE (ICE). The stock symbol will remain the same.
- FQ4 results, press release
- CC at 8:30 ET
Dec. 12, 2013, 7:01 AM
Dec. 12, 2013, 12:05 AM
Dec. 11, 2013, 5:30 PM
Oct. 24, 2013, 11:44 AM
- Though its Q3 results beat estimates, Infinera (INFN -9.4%) guided on its CC (transcript) for Q4 revenue of $130M-$140M and EPS of breakeven to -$0.04, below a consensus of $141.1M and $0.03. Gross margin is expected to fall back to ~40% after rising to 49% in Q3 (+1000 bps Q/Q and Y/Y).
- While Infinera expects to benefit from "a number of significant new wins and deployments" in Q4, the company doesn't "expect significant budget flush or year-end money" from carriers.
- Moreover, while Infinera has won a number of new deals - five new purchase commitments were scored for its DTN-X optical transmission platform - deal timing "remains challenging because of [Infinera's] short lead times and the strategic nature of many of these customer decisions."
- Ciena (CIEN -7.3%) is selling off on the guidance and commentary, as are many optical component suppliers. Ericsson's numbers might not be helping either. CIEN -7.6%. FNSR -7.2%. JDSU -3.4%. NPTN -2.4%. OCLR -2.3%. AFOP -3.2%.
- Infinera also disclosed CFO Ita Brennan is resigning, effective Feb. 28, 2014, to work for a startup. The company says it will start a search for a replacement.
Oct. 23, 2013, 2:23 PM
- The soft Q4 top-line guidance provided with Juniper's (JNPR -5.9%) Q3 beat has led shares to fall below $20. Several peers are also off on a down day for tech: FFIV -4.3% (reporting after the close). DRWI -3.9%. PKT -2.8%. RKUS -2.6%. CIEN -2.4%. RVBD -2.2%.
- On its CC, Juniper attributed its guidance to U.S. federal weakness caused in part by the government shutdown, and called the macro environment "dynamic." The company also disclosed it's cutting another 280 jobs (~3% of its workforce) in Q4, and that it's in the "later stages" of its search for a replacement for departing CEO Kevin Johnson.
- Some of the job cuts are related to Juniper's decision to kill off its MobileNext 3G/4G infrastructure software line.
- The sell-side is nervous about declining enterprise sales, caused in large part by security share losses. Juniper promises a resumption of security growth in 2014; favorable comps should make that easier.
- Carrier routers continue to be a bright spot: MX series edge router sales rose 15% Q/Q, and core router sales 11% Q/Q. Both Cisco and Juniper have been seeing strong edge router demand in recent quarters.
- Juniper also states it's seeing healthy carrier demand in all three major geographies. However, Americas demand is generally stronger than EMEA and Asia-Pac demand.
CIEN vs. ETF Alternatives
Other News & PR