- Ciena Corp (NYSE:CIEN) reported first-quarter FY22 revenue growth of 11.5% year-on-year to $844.4 million, missing the consensus of $856.85 million.
- Segments: Total Networking Platforms revenue rose by 8.7% Y/Y to $626.6 million, and Total Global Services increased 8.9% Y/Y to $123.8 million.
- Margins: The adjusted gross margin contracted 180 bps to 46.2% as costs surged 15.3% Y/Y.
- The adjusted operating margin contracted 280 bps to 11.8% as operating costs rose 14.9% Y/Y.
- Thought, the non-GAAP EPS of $0.47 beat the consensus of $0.45.
- Ciena held $1.7 billion in cash and equivalents and used $54.4 million in operating cash flow.
- Share Buyback: Ciena forged a $250 million accelerated share buyback arrangement during Q1 of FY22 under its new share repurchase program.
- "We expect our strategic investments to drive a significant increase in supply chain capacity in the second half, and therefore remain confident in our ability to address demand and achieve the strong revenue growth we expect for the fiscal year," said Gary Smith, President, and CEO of Ciena.
- Outlook: Last month, Ciena cut its FY22 sales guidance from $870 million -$910 million to $840 million - $850 million below the consensus of $894.95 million.
- Price Action: CIEN shares traded lower by 6.40% at $61.72 in the market session on the last check Monday.
