Ciena up 2% after beating Q1 estimates: Notes from prepared remarks -- will guide Q2 on the call
- Last quarter we shared a set of long-term financial targets (annual rev +5-7% over three years with EPS +14-16%) and our strategy for managing the business over the next several years to hit those targets.
- Non-telco revenue comprised roughly 35% of total sales. And our Direct webscale business was 15% of revenue, which is roughly double the contribution from this key customer segment in Q1'17 - both as a percentage of revenue and in absolute dollars.
- Our Asia-Pacific momentum continued. The region contributed 17% of Q1 revenue, up 25% from the same quarter last year, including contributions from several customers outside of our strong India base.
- And, our submarine business was up 10% year over year, largely driven by the continued growth of webscale traffic.
- In Q1, we had 7 new wins for our 400G-capable WaveLogic Ai, bringing us to total of 17 to date.
- We're seeing this capacity trend play out with global Tier 1 service providers, notably in Asia Pacific, where a key contributor to our Q1 growth in region was revenue from our recent wins in Japan and Korea, in addition to continued strength in India.
- This capacity trend also encompasses the metro builds we've discussed, including a strong contribution from the Verizon metro network project in Q1, which is rolling out as expected.
- Waveserver generated ~$65 million in revenue in Q1, and today claims more than 80 customers globally.
- Overall, we performed very well in Q1, including a particularly strong order flow performance for a fiscal first quarter, which is often challenging due to seasonality.
- We delivered adjusted gross margin of 42.6%, which is within our expected range and is a result of our deliberate strategy to take share from competitors and gain footprint with new and existing customers
- Co will guide Q2 guidance on the call