Q2 2024 Ciena Corp Earnings Call Transcript
Key Points
- Ciena Corp (CIEN) reported fiscal second quarter revenue of $911 million and an adjusted gross margin of 43.5%.
- The company generated $42 million in free cash flow during the quarter.
- Ciena Corp (CIEN) secured significant design wins with both service providers and cloud providers, including a multiyear network evolution project with a leading North American Tier 1 service provider.
- The company added 20 new customers for WaveLogic 5 Extreme in Q2, bringing the total customer count to 209.
- Ciena Corp (CIEN) has strong and expanding relationships with both service providers and cloud providers, positioning it well for future growth.
- Service providers are taking longer than expected to absorb and deploy accumulated inventory, impacting short-term revenue.
- The recovery of service provider order patterns is slower than initially expected due to macroeconomic concerns, particularly internationally.
- Despite positive secular demand, the current operating environment remains challenging with cautious spending from service providers.
- Ciena Corp (CIEN) expects fiscal year 2024 revenue to be at the low end of the previously provided range, approximately $4 billion.
- The company's inventory levels increased sequentially, which may indicate slower-than-expected inventory turnover.
Ladies and gentlemen, welcome to the Ciena's fiscal second quarter 2024 financial results conference call. (Operator Instructions) Please note that this event is being recorded. I would like now to turn the conference over to Gregg Lampf, Vice President of Investor Relations. Please go ahead.
Thank you, George. Good morning and welcome to Ciena's 2024 fiscal second quarter conference call. On the call today is Gary Smith, President and CEO, and Jim Moylan, CFO. Scott McFeely, Executive Advisor is also with us for Q&A. In addition to this call and the press release, we have posted to the Investors section of our website, an accompanying investor presentation that reflects this discussion as well as certain highlighted items from the quarter.
Our comments today speak to our recent performance. Our view on current market dynamics and drivers of our business as well as a discussion of our financial outlook. Today's discussion includes certain adjusted or non-GAAP measures of Ciena's results of operations. A
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