Ciena Clocks 26 Percent Revenue Growth in Q4, Beats Consensus; Plans Share Buyback up to $1 Billion

A digital board on the floor of the New York Stock Exchange (NYSE) shows the closing numbers near the end of the day in New York City on Dec. 02, 2021. (Spencer Platt/Getty Images)

Ciena Corp (CIEN) reported fourth-quarter FY21 revenue growth of 25.7 percent year-on-year to $1.04 billion, beating the consensus of $1.03 billion.

Segments

Total Networking Platforms revenue rose by 30.5 percent Y/Y to $828.8 million, and Total Global Services increased 7.6 percent Y/Y to $126.8 million.

Margins

The adjusted gross margin contracted 320 bps to 46.3 percent as costs surged 33.1 percent Y/Y.

The adjusted operating margin expanded 100 bps to 16.8 percent as operating costs rose 9.3 percent Y/Y.

The non-GAAP EPS of $0.85 was in-line with the consensus.

Ciena held $1.7 billion in cash and equivalents and generated $254.9 million in operating cash flow.

Share Buyback

On December 1, 2021, the board authorized up to $1.0 billion to repurchase, replacing the previous share repurchase authorization.

Ciena aims to enter into an accelerated share repurchase (ASR) arrangement to repurchase $250 million shares under the new program. The final settlement of the ASR will likely complete in Q2 of FY22.

“Our strong financial results exceeded our expectations in the fourth quarter and for the full fiscal year, driven by continued execution of our strategy and our demonstrated ability to manage supply chain challenges,” said Gary Smith, President, and CEO, Ciena.

By Anusuya Lahiri © 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.