Research Desk Line-up: Comtech Telecommunications Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Ciena Corp. (NYSE: CIEN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CIEN, following the Company's announcement of its financial results for the second quarter fiscal 2017 (Q2 FY17) on June 01, 2017. The Hanover, Maryland-based reported a 10.3% y-o-y growth in its revenue, topping market expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Communication Equipment industry. Pro-TD has currently selected Comtech Telecommunications Corp. (NASDAQ: CMTL) for due-diligence and potential coverage as the Company reported on June 07, 2017, its operating results for Q3 FY17 which ended on April 30, 2017 and also finalized its fiscal 2017 guidance. Register for a free membership today, and be among the early birds that get access to our report on Comtech Telecommunications when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CIEN; also brushing on CMTL. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=CIEN

http://protraderdaily.com/optin/?symbol=CMTL

Earnings Reviewed

For the three months ended on April 30, 2017, Ciena reported total revenue of $707.02 million compared to $640.72 million recorded at the end of Q2 FY16. Meanwhile, markets had expected the Company to report total revenue of $693.7 million.

The developer of high-speed networking technology recorded GAAP net income of $38.03 million, or $0.25 per diluted common share, for the reported quarter, which came in above $14.00 million, or $0.10 per diluted common share, in Q2 FY16. On a non-GAAP basis, the Company's net income for Q2 FY17 came in at $72.33 million, or $0.45 per diluted common share, compared to $52.36 million, or $0.34 per diluted common share, in the year ago same quarter. The Company's Q2 FY17 non-GAAP diluted beat Wall Street's expectations of $0.37 per diluted common share.

Operating Metrics

In Q2 FY17, the Company's total cost of goods sold was $388.78 million compared to $357.62 million in Q2 FY16. The Company posted adjusted gross profit of $323.25 million, or 45.7% of total revenues, in Q2 FY17 versus $288.73 million, or 45.1% of total revenues, in Q2 FY16. Furthermore, adjusted income from operations increased to $88.67 million, or 12.5% of total revenues, in Q2 FY17 from $66.14 million, or 10.3% of total revenues, in Q2 FY16.

Segment-wise

The network specialist's Networking Platforms segment revenue for Q2 FY17 grew to $571.49 million, or 80.8% of total revenue, from $512.21 million, or 79.9% of total revenue, in Q2 FY16.

The Company's quarterly revenues from Software and Software-Related Services segment also improved to $37.72 million, or 5.4%, in Q2 FY17 from $30.47 million, or 4.8% of total revenue, in Q2 FY16.

Ciena's Global Services' revenue fell marginally to end Q2 FY17 numbers at $97.82 million, or 13.8% of total revenue, from $98.04 million, or 15.3% of total revenue, in the previous year's comparable quarter.

Regional Contribution

During the reported quarter, revenues from North America were $424.37 million, or 60.0% of total revenue, compared to $395.51 million, or 61.7% of total revenue, in Q2 FY16.

Revenues from Europe, Middle-East, and Africa regions, which contributed 15.0% to total revenue, grew to $105.78 million in Q2 FY17 from $96.18 million in prior year's same period. Furthermore, revenues from Asia/Pacific region surged to $142.90 million, or 20.2% of total revenue, during Q2 FY17 from $91.14 million, or 14.3% of total revenue, in the year ago corresponding period.

However, Caribbean and Latin America revenues witnessed a decline from $57.90 million, or 9.0% of total revenue, in Q2 FY16 to $33.97 million, or 7.0% of total revenue, in the reported quarter

Cash Flow & Balance Sheet

During the first six months ended on April 30, 2017, Ciena generated $45.75 million in cash from operations compared to $75.68 million in the first half of fiscal 2016. Ciena had $628.62 million in cash and cash equivalents as on April 30, 2017, compared to $777.62 million at the close of books on October 31, 2016. Furthermore, the Company's long-term debts were down to $929.18 million as on April 30, 2017, from $1.02 billion as on October 31, 2016

Outlook

For Q3 FY17, Ciena expects revenue to be in the range $710 million to $740 million with non-GAAP gross margin in mid-40s. The Company's management further anticipates non-GAAP operating expenses to be approximately $235 million.

Stock Performance

On Wednesday, June 21, 2017, the stock closed the trading session at $25.52, slightly up 0.24% from its previous closing price of $25.46. A total volume of 1.88 million shares have exchanged hands. Ciena's stock price surged 4.50% in the last one month, 6.11% in the past six months, and 25.71% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 4.55%. The stock is trading at a PE ratio of 37.70 and currently has a market cap of $3.64 billion.

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SOURCE: Pro-Trader Daily