Ciena Corporation stock research
FY2024 Q2
Ciena (CIEN) Gross Margin — Quarter Ended Apr 27, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened sequentially but improved relative to the year-ago period, reflecting a mixed trend.
Gross margin takeaway
Quarter ended Apr 27, 2024 · FY2024 Q2
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened sequentially but improved relative to the year-ago period, reflecting a mixed trend.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue declined less proportionally than cost of revenue compared to the year-ago quarter, supporting gross margin improvement.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.7%
Gross profit
$388.7M
Revenue
$910.8M
Cost of revenue
$522.2M
Quarter-over-quarter change
-2.3 pts
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| Jul 29, 2023 | $1.1B | $448.9M | $618.9M | 42.0% |
| Oct 28, 2023 | $1.1B | $486.3M | $643.2M | 43.1% |
| Jan 27, 2024 | $1.0B | $467.0M | $570.7M | 45.0% |
| Apr 27, 2024 | $910.8M | $388.7M | $522.2M | 42.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 27, 2024
-2.3 pts
Year-over-year change
Apr 29, 2023
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue declined less proportionally than cost of revenue compared to the year-ago quarter, supporting gross margin improvement.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its decline rate has been a key factor in gross margin movement.