Thu, Jun 5, 6:42 PM (7 days ago)
**Ciena Corporation (CIEN) Q2 2025 Financial Summary** Ciena Corporation reported a strong Q2 2025, with notable increases in revenue and strategic investments in technology innovation. Here are the key financial highlights: **Revenue and Profit Margins:** - **Total Revenue:** $1,125.9 million, up 23.6% YoY. - **Product Revenue:** $898.6 million, up 27.5% YoY. - **Service Revenue:** $227.3 million, up 8.7% YoY. - **Gross Profit:** $452.8 million, up 16.5% YoY. - **Gross Margin:** 40.2%, down 2.5% YoY due to product mix and tariffs. - **Net Income:** $8.97 million, a significant improvement from a loss of $16.85 million in Q2 2024. **Operating Expenses:** - **R&D:** $214.9 million, up 10.0% YoY, representing 19.1% of revenue. - **Selling and Marketing:** $139.7 million, up 12.6% YoY. - **General and Administrative:** $56.95 million, up 14.9% YoY. - **Total Operating Expenses:** $420.0 million, up 7.0% YoY. **Cash Flow and Liquidity:** - **Cash from Operations:** $260.7 million, up from $186.2 million in Q2 2024. - **Capital Expenditures:** $55.6 million. - **Stock Repurchases:** $168.2 million under the stock repurchase program. - **Total Cash, Cash Equivalents, and Investments:** $1.35 billion as of May 3, 2025. **Segment Performance:** - **Networking Platforms:** Revenue up 28.1% YoY, driven by optical networking and routing/switching products. - **Platform Software and Services:** Revenue flat YoY. - **Blue Planet Automation Software and Services:** Revenue up 93.6% YoY. - **Global Services:** Revenue up 8.5% YoY. **Geographic Revenue:** - **Americas:** $833.8 million, up 25.8% YoY. - **EMEA:** $191.6 million, up 23.0% YoY. - **APAC:** $100.5 million, up 9.0% YoY. **Future Outlook:** - Ciena continues to invest in R&D, focusing on AI and cloud provider opportunities. - The company expects long-term growth driven by increased bandwidth demand and network automation. - Ciena's stock repurchase program has $836.5 million remaining under the current authorization. **Uncertainties and Risks:** - Tariffs and trade policies may impact supply chain and costs. - Currency fluctuations and geopolitical events pose risks to revenue and margins. - The company is monitoring these factors and taking steps to mitigate potential impacts. Ciena's strategic investments and strong Q2 performance position the company for continued growth in the dynamic network technology market.