Ciena Corporation stock research
FY2023 Q2
Ciena (CIEN) Gross Margin — Quarter Ended Apr 29, 2023
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit was higher than both prior periods, while cost of revenue was also higher; gross margin was slightly lower than the prior quarter but higher than the year-ago quarter.
Gross margin takeaway
Quarter ended Apr 29, 2023 · FY2023 Q2
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit was higher than both prior periods, while cost of revenue was also higher; gross margin was slightly lower than the prior quarter but higher than the year-ago quarter.
- The strongest observable driver is the gross profit increase relative to both comparison periods, supported by revenue growth year-over-year. However, the sequential decline in gross margin reflects a larger increase in cost of revenue while revenue remained stable.
- Compared to the prior quarter, gross margin weakened slightly as cost of revenue grew while revenue remained stable. Compared to the same quarter last year, gross margin improved as revenue and gross profit increased at a faster pace than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.1%
Gross profit
$487.7M
Revenue
$1.1B
Cost of revenue
$645.0M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+0.7 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% |
| Apr 29, 2023 | $1.1B | $487.7M | $645.0M | 43.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 28, 2023
-0.1 pts
Year-over-year change
Apr 30, 2022
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the gross profit increase relative to both comparison periods, supported by revenue growth year-over-year. However, the sequential decline in gross margin reflects a larger increase in cost of revenue while revenue remained stable.
Compared to the prior quarter, gross margin weakened slightly as cost of revenue grew while revenue remained stable. Compared to the same quarter last year, gross margin improved as revenue and gross profit increased at a faster pace than cost of revenue.
Monitor cost of revenue trends to assess whether the sequential margin pressure persists.