CIENA Reports First Quarter Revenue of $152.2 million, Net Income of $0.06 per Diluted Share
MultiWave CoreDirector™ Optical Core Switch Trials on Schedule
Linthicum, MD — 02/17/2000Ciena Corporation (CIEN) today reported revenue of $152.2 million for its first fiscal quarter ended January 31, 2000, an increase of approximately 52% as compared to the same period a year ago when the Company reported revenue of $100.4 million.
Net income for the first quarter was $9.1 million, or $0.06 per diluted share. This compares with net income for the previous quarter of $4.5 million, or $0.03, per diluted share. For the same period in fiscal 1999, the Company reported a net loss of $1.9 million, or a loss of $0.01 per diluted share.1
Ciena continues to broaden its customer base, recognizing revenue during the first quarter from a total of 25 optical networking customers, an increase of 64% over 13 revenue-generating customers in the same period a year ago. The quarter included revenue from four customers from which the Company had not previously recorded revenue.
"With the emergence of the real optical-level service enablers offered for the first time by Ciena in our recently announced LightWorks Toolkit™, optical networking is truly coming of age," said Patrick Nettles, Ciena president and chief executive officer. "Before the end of this year, the optical layer will be used to offer market differentiating services. That's when service providers really begin to reap benefits from the shift from legacy network architectures to next-generation, intelligent optical networks."
During the quarter, Ciena shipped MultiWave CoreDirector™, the industry's first intelligent optical core switch, to a total of five trial customers, including announced trial customers Williams and iaxis. A sixth trial was rescheduled to accommodate changes in the customer's testing schedule.
Ciena also disclosed it has received a substantial purchase order for long-distance optical transport equipment from a new undisclosed customer that, due to immediate demand from the customer, will involve substantial equipment shipments in the Company's second fiscal quarter. The Company expects these shipments will contribute materially to its reported revenue for the period, although its ability to recognize revenue will be dependent on successful achievement of a number of execution challenges.
"Demand in all areas of optical networking - from core transport to metropolitan applications to core switching - appears strong and growing at both 2.5 and 10 gigabit per second transmission speeds, " concluded Nettles. "With a network-spanning product line and our world-wide support capabilities, Ciena is uniquely positioned to benefit from current robust market dynamics in the optical networking space."
1 Past financial results have been restated to reflect the consolidated operating results of Lightera Networks, Inc. and Omnia Communications, Inc., acquired by Ciena in pooling transactions on March 31, 1999 and July 1, 1999, respectively. Net income and earnings per share amounts in the attached consolidated statement of operations are inclusive of the effects of merger-related and other one-time charges. All earnings per share amounts represent diluted earnings per share as defined within Statement of Financial Accounting Standards No. 128 (SFAS 128).
(Consolidated Statements of Operations and Consolidated Balance Sheets follow)
Ciena CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
|
Quarter ended January 31, | ||
|
1999 |
2000 | |
|
Revenue |
$ 100,417 | $ 152,213 |
|
Cost of goods sold |
65,778 | 87,003 |
|
Gross profit.. |
34,639 | 65,210 |
|
Operating expenses: |
||
|
Research and development.. |
22,218 | 29,742 |
|
Selling and marketing |
13,608 | 18,122 |
|
General and administrative... |
5,036 | 6,871 |
|
Total operating expenses.. |
40,862 | 54,735 |
|
Income (loss) from operations. |
(6,223) | 10,475 |
|
Interest and other income (expense), net. |
3,396 | 3,046 |
|
Interest expense |
(95) | (96) |
|
Income (loss) before income taxes |
(2,922) | 13,425 |
|
Provision (benefit) for income taxes. |
(1,041) | 4,363 |
|
Net income (loss) |
$ (1,881) |
$ 9,062 |
|
Basic net income (loss) per common share |
$ (0.01) |
$ 0.07 |
|
Diluted net income (loss) per common share and dilutive potential Common share. |
$ (0.01) |
$ 0.06 |
|
Weighted average basic common shares outstanding.. |
131,202 |
138,091 |
|
Weighted average basic common and dilutive potential Common shares outstanding |
131,202 |
147,903 |
Ciena CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
|
October 31, 1999 |
January 31, 2000 | |||
|
ASSETS |
||||
| Current assets: | ||||
|
Cash and cash equivalents |
$ 143,440 | $ 148,329 | ||
|
Marketable debt securities |
118,956 | 110,208 | ||
|
Accounts receivable, net |
144,348 | 166,244 | ||
|
Inventories, net.. |
79,608 | 82,609 | ||
|
Deferred income taxes |
25,385 | 26,018 | ||
|
Prepaid expenses and other |
21,262 | 25,070 | ||
|
Total current assets |
532,999 | 558,478 | ||
|
Equipment, furniture and fixtures, net |
125,252 | 129,259 | ||
|
Goodwill and other intangible assets, net |
12,635 | 11,726 | ||
|
Other assets. |
6,949 | 7,695 | ||
|
Total assets |
$ 677,835 |
$ 707,158 | ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||
|
Current liabilities: |
||||
|
Accounts payable |
$ 34,399 |
$ 38,431 | ||
|
Accrued liabilities |
58,486 | 61,028 | ||
|
Income taxes payable |
8,697 | - | ||
|
Deferred revenue |
2,954 | 2,102 | ||
|
Other current obligations |
992 | 835 | ||
|
Total current liabilities |
105,528 | 102,396 | ||
|
Deferred income taxes |
36,953 | 36,953 | ||
|
Other long-term obligations |
4,881 | 5,084 | ||
|
Total liabilities |
147,362 | 144,433 | ||
|
Commitments and contingencies: |
||||
|
Stockholders' equity: |
||||
|
Preferred stock - par value $.01; 20,000,000 shares authorized; zero shares | ||||
|
issued and outstanding |
- |
- | ||
|
Common stock - par value $.01; 360,000,000 shares authorized; | ||||
|
138,187,356 and 139,809,956 shares issued and outstanding.... |
1,382 | 1,398 | ||
|
Additional paid-in capital |
360,082 | 383,149 | ||
|
Notes receivable from stockholders. |
(210) |
(141) | ||
|
Accumulated other comprehensive income |
(40) |
(2) | ||
|
Retained earnings |
169,259 |
178,321 | ||
|
Total stockholders' equity... |
530,473 |
562,725 | ||
|
Total liabilities and stockholders' equity |
$ 677,835 |
$ 707,158 | ||
Ciena specializes in network transition. We provide the flexible platforms, intelligent software and professional services to build converged networks for enhanced services and applications. With a growing global presence, Ciena leverages its heritage of practical innovation to deliver maximum performance and economic value in communications networks worldwide. For more information, visit www.ciena.com.
Forward-looking statements in this release, including the Company's expectation that shipments to a new customer will contribute materially to the Company's fiscal second quarter; that demand in all areas of optical networking appears to be strong and growing and; that Ciena is uniquely positioned to benefit from the current market dynamics, are based on information available to the Company as of the date hereof. The Company's actual results could differ materially from those stated or implied by such forward-looking statements, due to risks and uncertainties associated with the Company's business. The forward-looking statements should be considered in the context of these and other risk factors disclosed in the Company's report on Form 10-Q, as filed with the Securities and Exchange Commission on February 17, 2000.
Nicole Anderson
Ciena Corporation
(877) 857 -7377
pr@ciena.com
Marie Downing
Ciena Corporation
(888) 243-6223
ir@ciena.com
