Ciena Corporation (CIEN) swung to a net profit for the quarter ended Jan. 31, 2017. The company has made a net profit of $3.86 million, or $ 0.03 a share in the quarter, against a net loss of $11.55 million, or $0.08 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $38.40 million, or $0.26 a share compared with $25.23 million or $0.18 a share, a year ago.
Revenue during the quarter grew 8.44 percent to $621.50 million from $573.12 million in the previous year period. Gross margin for the quarter expanded 18 basis points over the previous year period to 44.05 percent. Total expenses were 96.93 percent of quarterly revenues, down from 98.04 percent for the same period last year. This has led to an improvement of 111 basis points in operating margin to 3.07 percent.
Operating income for the quarter was $19.10 million, compared with $11.24 million in the previous year period.
However, the adjusted operating income for the quarter stood at $53.09 million compared to $47.68 million in the prior year period. At the same time, adjusted operating margin improved 22 basis points in the quarter to 8.54 percent from 8.32 percent in the last year period.
"Our overall first quarter performance demonstrates our ability to grow and capture market share across geographies, market segments and product lines, reflecting the investments we've made to diversify our business in these areas," said Gary B. Smith, president and chief executive officer, Ciena. "Our strategic investments and differentiated portfolio are providing us strong momentum in the market, and as a result we believe that we are well-positioned to deliver on our fiscal 2017 financial targets."
For the second-quarter 2017, Ciena Corporation forecasts revenue to be in the range of $680 million to $710 million.
Operating cash flow turns negative
Ciena Corporation has spent $26.25 million cash to meet operating activities during the quarter as against cash inflow of $14.98 million in the last year period.
The company has spent $20.16 million cash to meet investing activities during the quarter as against cash outgo of $134.04 million in the last year period.
The company has spent $37.19 million cash to carry out financing activities during the quarter as against cash outgo of $8.19 million in the last year period.
Cash and cash equivalents stood at $693.85 million as on Jan. 31, 2017, up 5.08 percent or $33.53 million from $660.32 million on Jan. 31, 2016.
Working capital decreases marginally
Ciena Corporation has witnessed a decline in the working capital over the last year. It stood at $1,156.49 million as at Jan. 31, 2017, down 3.29 percent or $39.30 million from $1,195.79 million on Jan. 31, 2016. Current ratio was at 2.37 as on Jan. 31, 2017, down from 3.15 on Jan. 31, 2016.
Cash conversion cycle (CCC) has decreased to 57 days for the quarter from 81 days for the last year period. Days sales outstanding went up to 85 days for the quarter compared with 83 days for the same period last year.
Days inventory outstanding has decreased to 38 days for the quarter compared with 57 days for the previous year period. At the same time, days payable outstanding went up to 66 days for the quarter from 58 for the same period last year.
Debt comes down marginally
Ciena Corporation has recorded a decline in total debt over the last one year. It stood at $1,209.88 million as on Jan. 31, 2017, down 4.04 percent or $50.94 million from $1,260.82 million on Jan. 31, 2016. Total debt was 42.30 percent of total assets as on Jan. 31, 2017, compared with 48.69 percent on Jan. 31, 2016. Debt to equity ratio was at 1.51 as on Jan. 31, 2017, down from 2.01 as on Jan. 31, 2016. Interest coverage ratio improved to 1.26 for the quarter from 0.88 for the same period last year.
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