Ciena Misses Q3 Revenue Due To Supply Chain Woes, Expects Improvement In FY23

  • Ciena Corp CIEN reported a third-quarter FY22 revenue decline of 12.2% year-on-year to $868 million, missing the consensus of $904.7 million.
  • Segments: Total Networking Platforms revenue rose by 15.3% Y/Y to $734.5 million, and Total Global Services increased 10.9% Y/Y to $128.7 million.
  • Margins: The adjusted gross margin contracted 850 bps to 40% as costs rose 2.7% Y/Y.
  • The adjusted operating margin contracted 1,060 bps to 8.5% as adjusted operating costs fell 6% Y/Y.
  • The non-GAAP EPS of $0.33 was in-line with the consensus.
  • Ciena held $1.3 billion in cash and equivalents and used $205.4 million in operating cash flow.
  • "Despite continued strong customer demand, our fiscal third quarter financial results were negatively impacted by late delivery and substantially lower-than-committed volume from a small number of suppliers for specific components that are essential for delivering finished goods to our customers," said Gary Smith, president, and CEO of Ciena. 
  • "While these dynamics will continue in our fiscal fourth quarter, we expect improvement as we move into fiscal 2023, providing us increased ability to service this unprecedented demand and continue to gain market share."
  • Price Action: CIEN shares traded lower by 7.63% at $46.98 on the last check Thursday.
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