Ciena’s price movement
Ciena (CIEN) has a market capitalization of $2.7 billion. Ciena’s YTD (year-to-date) price movement was a mix of rises and falls in fiscal 2015.
After its fiscal 4Q15 earnings report, CIEN fell by 16.9% to close at $20.04 per share as of December 10, 2015. The stock’s price movements on a weekly, monthly, and YTD basis are -18.1%, -15.6%, and 3.3%, respectively.
Technically, CIEN has broken its support and is trading below all of its moving averages. Currently, CIEN is trading 18.3% below its 20-day moving average, 15.6% below its 50-day moving average, and 12.6% below its 200-day moving average.
The iShares North American Technology-Multimedia Networking ETF (IGN) invests 4.6% of its holdings in Ciena. The ETF tracks a market-cap–weighted index of US and Canadian multimedia networking companies. The YTD price movement of IGN is 0.96% as of December 9, 2015.
Competitors of Ciena and their market capitalizations are as follows:
Performance of Ciena in fiscal 4Q15 and fiscal 2015
Ciena reported fiscal 4Q15 total revenue of $591.0 million, a fall of 14.6% when compared to total revenue of $692.0 million in fiscal 4Q14. Its cost of goods sold as a percentage of revenue rose by 10.7% in fiscal 4Q15 as compared to last year.
The company’s net income and EPS (earnings per share) fell to -$30.7 million and -$0.29, respectively, in fiscal 4Q15, compared to its net income and EPS of -$13.8 million and -$0.10, respectively, in fiscal 4Q14.
CIEN has completed the acquisition of Cyan, a provider of software and platforms, in order to enable open, agile, and scalable software-defined networks, pursuant to the terms of the acquisition agreement.
Fiscal 2015 results
In fiscal 2015, Ciena reported revenue of $2,288.3 million, a fall of 6.4% YoY (year-over-year). The company’s gross profit margin and operating income fell by 4.7% and 54.5%, respectively, in fiscal 2015.
CIEN’s net income and EPS fell to -$40.6 million and -$0.38, respectively, in fiscal 2015, compared to its net income and EPS of $11.7 million and $0.10, respectively, in fiscal 2014.
Meanwhile, its cash and cash equivalents fell by 25.8%, and its inventories rose by 33.2% in fiscal 2015. The company’s current ratio fell to 2.2 in fiscal 2015, compared to its current ratio of 2.8 in fiscal 2014.
Ciena’s chief executive officer Gary Smith said, “Our strong financial performance in fiscal 2015 included substantial increases in gross and operating margin as well as meaningful cash generation, which enabled us to exceed the longer-term financial milestones that we established several years ago.”
Smith went on to say, “We believe that our proven ability to drive operating leverage from the business, when combined with strong market drivers from the next phase of network transformation, positions us well to deliver continued growth and profitability in fiscal 2016 and beyond.”
Ciena has projected revenue in the range of $555.0–$590.0 million for fiscal 1Q16. It has projected an adjusted non-GAAP gross margin of ~44% for the same period.
Additionally, Ciena expects revenue growth in the range of 8%–9% for fiscal 2016. It has projected an adjusted non-GAAP operating margin in the range of 11%–12% for the same period.