Ciena Shares Drop On Q2 Miss; Clocks 14% Revenue Growth Aided By Order Flow, Backlog

Ciena Corp CIEN reported second-quarter FY22 revenue growth of 13.8% year-on-year to $949.2 million, missing the consensus of $950.8 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 620 bps to 43% as costs surged 29.9% Y/Y.
The adjusted operating margin contracted 450 bps to 11.3% as operating costs rose 23.2% Y/Y.
The non-GAAP EPS of $0.50 missed the consensus of $0.54.
Ciena held $1.6 billion in cash and equivalents and generated $105.8 million in operating cash flow.
"Our strong execution in the fiscal second quarter enabled us to deliver 14% year-over-year revenue growth despite an increasingly challenging supply environment," CEO Gary Smith said. "We also saw continued strength in order flow and backlog growth in the quarter, reflecting the durability of longer-term secular demand drivers."
Price Action: CIEN shares traded lower by 3.31% at $49.65 in the premarket session on the last check Thursday.

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