Before the opening of trading session on Thursday, an announcement was made by Ciena Corp. (NYSE:CIEN), in which the company made public its financial results of 1QFY15. Ciena Corp. (NYSE:CIEN) deals with the manufacture of networking based equipment. The report set forth by this company delineated figures of $0.12 as its adjusted EPS along with a generated income of $59.2 million. On the other hand, last year’s statistics suggest an EPS (earnings per share) of $0.13 and a gross income of $533.7 million.
This year’s GAAP statistics also reflect a loss which is slightly greater than that of last year. While last year Ciena Corp (NYSE:CIEN) went through a loss of $0.15 per share, this year the amount seems to have escalated, since now the company suffered a net loss of $0.17 per share. Over all the total loss faced by Ciena Corp (NYSE:CIEN) amount to approximately $18.8 million. Several reasons can be in play behind this loss. Among these reasons, reimbursements of all those expenses which were share-based, as well as remuneration of imperceptible assets have a significant position.
These were the figures that reflected the financial outcome of first quarter of the fiscal year 2015. As far as the second quarter is concerned, Ciena Corp (NYSE:CIEN) is said to put forward a report, in which the gross generate income of the company would most likely range between $585 million to $615 million. The Gross margin after adjustment in the first quarter neared to about 44.1%. However, estimated results of the second quarter suggest that it would lie somewhere between 42% to 43%.
Furthermore, Ciena Corp (NYSE:CIEN) has also predicted expenses that would be required for the company to operate appropriately. These expenses are supposed to cover a hefty amount of $210 million. However, the operating expenses of first quarter were worth $197.3 million.
Alongside this revenue estimate, the consensus estimate analysis suggests figures of an EPS of $0.20 and a generated income of $597.17 million.
Although, conformity can be seen between both the revenue estimate and that given by the analysts; however despite this singularity of opinion, one wonders how this target of EPS is going to be attained. An escalation in total income generally doesn’t come as a consequence of elevated expenses conjugated with lower gross margins.
The company’s largest division yielded a profitable amount of sales which means glad tidings for the company. This division contributed greatly to the company’s overall generated income; which saw a rise of 1 %; and increased from $333.4 million to $336.6 million in YOY. The total contribution of this division to the company’s revenue was amounted to almost 64%.
The company carried out sales of almost 37.4% outside the territory of United States. Moreover, Ciena Corp’s (NYSE:CIEN) major customer happens to be AT&T Inc. (NYSE:T). The latter company alone makes up almost 22% of Ciena Corp’s (NYSE:CIEN) gross revenue.
Although prospects for the next trading session of Thursday do seem a little bright; yet not bright enough to enable the earnings to rise up to the level of analysts’ expectations.
