Ciena Corporation stock research
FY2024 Q4
Ciena (CIEN) Gross Margin — Quarter Ended Nov 2, 2024
Revenue in the current quarter was unchanged from the same quarter last year, but gross profit and gross margin were lower due to a higher cost of revenue. Compared with the prior quarter, revenue increased while gross profit also increased, though the gross margin narrowed because the cost of revenue rose at a faster pace.
Gross margin takeaway
Quarter ended Nov 2, 2024 · FY2024 Q4
Revenue in the current quarter was unchanged from the same quarter last year, but gross profit and gross margin were lower due to a higher cost of revenue. Compared with the prior quarter, revenue increased while gross profit also increased, though the gross margin narrowed because the cost of revenue rose at a faster pace.
- The gross margin weakened sequentially and year-over-year. The increase in cost of revenue was proportionally larger than the increase in revenue compared to the prior quarter, and relative to the same quarter last year, cost of revenue was higher while revenue was stable.
- Compared to the prior quarter, revenue was higher and gross profit was higher, but the gross margin was lower. Compared to the same quarter one year ago, revenue was unchanged, gross profit was lower, and the gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.9%
Gross profit
$460.0M
Revenue
$1.1B
Cost of revenue
$664.1M
Quarter-over-quarter change
-1.9 pts
Year-over-year change
-2.1 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 27, 2024 | $1.0B | $467.0M | $570.7M | 45.0% |
| Apr 27, 2024 | $910.8M | $388.7M | $522.2M | 42.7% |
| Jul 27, 2024 | $942.3M | $403.9M | $538.4M | 42.9% |
| Nov 2, 2024 | $1.1B | $460.0M | $664.1M | 40.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 27, 2024
-1.9 pts
Year-over-year change
Oct 28, 2023
-2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially and year-over-year. The increase in cost of revenue was proportionally larger than the increase in revenue compared to the prior quarter, and relative to the same quarter last year, cost of revenue was higher while revenue was stable.
Compared to the prior quarter, revenue was higher and gross profit was higher, but the gross margin was lower. Compared to the same quarter one year ago, revenue was unchanged, gross profit was lower, and the gross margin was lower.
Monitor the trend in cost of revenue relative to revenue, as it has been the primary factor behind the gross margin compression.