# Ciena Corporation (CIEN) — Stock CV

Ciena Corporation is a $63.9B technology company. Revenue grew 32.6% over the last year, it keeps 11¢ of every dollar of sales as profit, and its net debt equals ~0.3 years of free cash flow. It trades at 97.5× earnings — in the most expensive third of its own history.

> Ciena is a leader in high-speed optical connectivity, providing systems, components, and automation software for telecom providers and enterprises, such as data centers, to enable long-distance connectivity.

## Identity

- **Ticker**: CIEN
- **Sector**: Technology
- **Industry**: Telephone & Telegraph Apparatus
- **Headquarters**: HANOVER, MD
- **Employees**: 9 080
- **Website**: https://www.ciena.com
- **Market cap**: $63.9B
- **Last price**: $450.39
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $6.02B
- **Net income**: $654M
- **Free cash flow**: $814M
- **Net debt**: $216M
- **P/E**: 97.5
- **Revenue growth (YoY)**: 32.6%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 15 |
| Growth | 37 |
| Profitability | 57 |
| Health | 63 |
| Quality | 97 |
| Moat | 44 |

## Qualifications (beginner checklist) — 7 of 10 passed

- [x] Revenue growing — +32.6% YoY
- [x] Profitable — $654M TTM
- [ ] Profit growing — -5.5% YoY
- [x] Generates cash — $814M TTM
- [x] Debt under control — ~0.3y of cash flow to repay
- [x] Established company — $63.9B market cap
- [x] Not printing shares — -6.9% shares over ~5y
- [x] Proven track record — 9/10 profitable years
- [ ] Financially stable — health score 43/100
- [ ] Valuation not extreme — P/E 97.5

## Experience (career milestones)

- **2018** — Ciena purchased software and services company DonRiver for an undisclosed amount
- **FY2017** — Best year on record: $1.26B net income
- **FY2016** — First recorded profitable year: $72.6M net income
- **FY2016** — Revenue already above $1B: $2.60B in first reported year
- **2016** — Ciena acquired Packet Design, an Austin-based network performance management software company specializing in…
- **2004** — Catena Networks and New Jersey–based Internet Photonics were purchased by Ciena in 2004
- **2002** — ONI Systems, a San Jose, California–based producer of phone and computer data equipment, was acquired by Ciena for…
- **2000** — The company purchased Cyras Corp. of Fremont, California, during 2000 to 2001 for $2 billion in stock
- **1998** — Nettles and Michael Birck of Tellabs began discussing a possible merger
- **1997** — Ciena went public on NASDAQ in February 1997 with the largest initial public offering by a startup company to date
- **1997** — Ciena acquired the telecommunications company AstraCom Inc. in 1997 for $13.1 million
- **1996** — The company's first products were introduced in May 1996 to Sprint Corporation
- **1992** — Ciena was founded in 1992 under the name HydraLite by electrical engineer David R

## Strengths

- High gross margin (44.1%)
- Revenue growing 32.6% year over year
- Interest covered 5.1× by operating earnings
- Piotroski F-Score 7/9 — fundamentally strong checklist

## Watch-outs

- Loss-making in 1 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $3.62B | $500M | $462M |
| FY2022 | $3.63B | $153M | -$259M |
| FY2023 | $4.39B | $255M | $62.1M |
| FY2024 | $4.01B | $84.0M | $378M |
| FY2025 | $4.77B | $123M | $665M |

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Source: https://stockcv.com/CIEN — derived from company filings; may be delayed or incomplete. Information, not investment advice.