Q2 2025 Ciena Corp Earnings Call Transcript
Key Points
- Ciena Corp (CIEN) reported strong fiscal second-quarter results with revenue of $1.13 billion, at the high end of their guidance.
- Revenue from cloud providers grew 85% year over year, reaching over $400 million, highlighting strong demand in AI infrastructure.
- Ciena Corp (CIEN) achieved record direct cloud provider revenue, with three of the top five customers being cloud providers.
- The company added 24 new WaveLogic 6 Extreme customers in Q2, bringing the total to 49 within just two quarters of general availability.
- Blue Planet achieved its highest ever quarterly revenue at just under $30 million, reflecting successful transformation efforts.
- Adjusted gross margin was 41%, in line with guidance but impacted by product mix and tariffs.
- Adjusted operating expense in Q2 was higher than expected due to increased incentive compensation.
- The company absorbed a net impact to the bottom line in the mid-single-digit millions due to dynamic tariff conditions.
- Ciena Corp (CIEN) expects annual gross margins at the lower end of the previously assumed range of 42% to 44% for fiscal 2025.
- The increased demand for lower-margin products like pluggables and reconfigurable line systems is impacting overall gross margins.
Good day and welcome to Ciena's fiscal second-quarter 2025 financial results conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Gregg Lampf, Vice President of Investor Relations. Please go ahead.
Thank you, Michael. Good morning, and welcome to Ciena's 2025 fiscal second quarter conference call. On the call today is Gary Smith, President and CEO; and Jim Moylan, CFO. Scott McFeely, Executive Adviser, is also with us for Q&A. In addition to this call and the press release, we 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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