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Ciena (CIEN) Operating Income : $282 Mil (TTM As of Apr. 2024)


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What is Ciena Operating Income?

Ciena's Operating Income for the three months ended in Apr. 2024 was $12 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2024 was $282 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ciena's Operating Income for the three months ended in Apr. 2024 was $12 Mil. Ciena's Revenue for the three months ended in Apr. 2024 was $911 Mil. Therefore, Ciena's Operating Margin % for the quarter that ended in Apr. 2024 was 1.28%.

Warning Sign:

Ciena Corp operating margin has been in a 5-year decline. The average rate of decline per year is -2.3%.

Ciena's 5-Year average Growth Rate for Operating Margin % was -2.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ciena's annualized ROC % for the quarter that ended in Apr. 2024 was 1.25%. Ciena's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2024 was 2.03%.


Ciena Operating Income Historical Data

The historical data trend for Ciena's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ciena Operating Income Chart

Ciena Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 374.67 513.65 527.49 257.23 384.85

Ciena Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 111.82 82.45 98.51 89.60 11.69

Ciena Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Apr. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $282 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Ciena  (NYSE:CIEN) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Ciena's annualized ROC % for the quarter that ended in Apr. 2024 is calculated as:

ROC % (Q: Apr. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2024 ) + Invested Capital (Q: Apr. 2024 ))/ count )
=46.76 * ( 1 - -5.12% )/( (3858.978 + 3981.856)/ 2 )
=49.154112/3920.417
=1.25 %

where

Invested Capital(Q: Jan. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5593.21 - 362.803 - ( 1371.429 - max(0, 841.306 - 3608.747+1371.429))
=3858.978

Invested Capital(Q: Apr. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5614.803 - 376.038 - ( 1256.909 - max(0, 912.191 - 3541.347+1256.909))
=3981.856

Note: The Operating Income data used here is four times the quarterly (Apr. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Ciena's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2024  Q: Apr. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=31.328/( ( (316.036 + max(1256.287, 0)) + (304.563 + max(1213.423, 0)) )/ 2 )
=31.328/( ( 1572.323 + 1517.986 )/ 2 )
=31.328/1545.1545
=2.03 %

where Working Capital is:

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(865.239 + 984.886 + 214.711) - (362.803 + 166.714 + 279.032)
=1256.287

Working Capital(Q: Apr. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(840.131 + 1022.615 + 230.796) - (376.038 + 196.989 + 307.092)
=1213.423

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Ciena's Operating Margin % for the quarter that ended in Apr. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Apr. 2024 )/Revenue (Q: Apr. 2024 )
=11.69/910.826
=1.28 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Ciena Operating Income Related Terms

Thank you for viewing the detailed overview of Ciena's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Ciena (CIEN) Business Description

Address
7035 Ridge Road, Hanover, MD, USA, 21076
Ciena Corp is a network and technology company. It provides network hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks. It serves various industries such as communication services providers, web-scale providers, cable operators, government, and large enterprises world-wide. The business activities function through Networking Platforms; Platform Software and Services; Blue Planet Automation Software, and Global Services segments. Geographically, its presence is seen in the markets of the United States, Canada, the Caribbean, Latin America, Europe, the Middle East, Africa, the Asia Pacific, Japan, and India. The maximum revenue is generated from Americas.
Executives
David M Rothenstein officer: Sr. VP, General Counsel 7035 RIDGE ROAD, HANOVER MD 21076
Gary B Smith director, officer: President, CEO C/O CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Brodie Gage officer: SVP Global Products & Supply 2351 ALFRED-NOBEL BLVD, SUITE N-300, SAINT LAURENT A8 H4S 2A9
Dino Diperna officer: SVP Global R&D 385 TERRY FOX DR, OTTAWA A6 K2K OL1
Jason Phipps officer: SVP Global Sales and Marketing 7410 RIDGE RD, HANOVER MD 21076
Joseph Cumello officer: SVP, General Mgr. Blue Planet 7035 RIDGE RD, HANOVER MD 21076
Scott Mcfeely officer: SVP, Networking Platforms 7035 RIDGE RD, HANOVER MD 21076
Mary G Puma director AXCELIS TECHNOLOGIES INC., 108 CHERRY HILL DRIVE, BEVERLY MA 01915
Andrew C Petrik officer: VP, CONTROLLER 7035 RIDGE ROAD, HANOVER MD 21076
Sheela Kosaraju officer: SVP, General Counsel 43-51 WORSHIP ST, LONDON X0 EC2A 2DX
Stephen B Alexander officer: SVP, Chief Technology Officer C/O CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Rick Hamilton officer: SVP, Software and Services 9500 AMBERGIEN, AUSTIN TX 78729
Moylan James E Jr officer: SVP Finance, CFO CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Judith M Obrien director 855 MAUDE AVENUE, MOUNTAIN VIEW CA 94043
Thomas Michael Nevens director C/O BORLAND SOFTWARE CORPORATION, 20450 STEVENS CREEK BLVD, SUITE 800, CUPERTINO CA 95014