Ciena Corporation stock research
FY2023 Q1
Ciena (CIEN) Gross Margin — Quarter Ended Jan 28, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and was lower than the same quarter a year ago.
Gross margin takeaway
Quarter ended Jan 28, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and was lower than the same quarter a year ago.
- The relationship between revenue and cost of revenue shows that cost grew faster than revenue, putting pressure on gross margin. The strongest observable driver is the relative growth of cost of revenue compared to revenue.
- Compared to the prior quarter, gross margin was lower despite higher revenue and gross profit. Versus the same quarter last year, gross margin also weakened as cost of revenue increased more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.2%
Gross profit
$455.9M
Revenue
$1.1B
Cost of revenue
$600.6M
Quarter-over-quarter change
n/a
Year-over-year change
-2.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 28, 2023 | $1.1B | $455.9M | $600.6M | 43.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 29, 2022
-2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue shows that cost grew faster than revenue, putting pressure on gross margin. The strongest observable driver is the relative growth of cost of revenue compared to revenue.
Compared to the prior quarter, gross margin was lower despite higher revenue and gross profit. Versus the same quarter last year, gross margin also weakened as cost of revenue increased more than revenue.
Monitor the trend in cost of revenue relative to revenue, as its faster growth is the primary factor behind the margin decline.