Ciena Corporation stock research
FY2023 Q3
Ciena (CIEN) Gross Margin — Quarter Ended Jul 29, 2023
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue both decreased, leading to a slightly lower gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin takeaway
Quarter ended Jul 29, 2023 · FY2023 Q3
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue both decreased, leading to a slightly lower gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
- The gross margin weakened sequentially as gross profit declined more than proportionally relative to the change in revenue. The year-over-year improvement in gross margin was driven by a larger increase in gross profit compared to the increase in revenue.
- Compared to the immediately preceding quarter, revenue was essentially unchanged, gross profit was lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.0%
Gross profit
$448.9M
Revenue
$1.1B
Cost of revenue
$618.9M
Quarter-over-quarter change
-1.0 pts
Year-over-year change
+2.8 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% |
| Jul 29, 2023 | $1.1B | $448.9M | $618.9M | 42.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 29, 2023
-1.0 pts
Year-over-year change
Jul 30, 2022
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as gross profit declined more than proportionally relative to the change in revenue. The year-over-year improvement in gross margin was driven by a larger increase in gross profit compared to the increase in revenue.
Compared to the immediately preceding quarter, revenue was essentially unchanged, gross profit was lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Monitor the trajectory of gross profit relative to revenue in the next quarter to assess whether the sequential weakening in gross margin persists.