Ciena Corporation (CIEN) has reported a 46.19 percent jump in profit for the quarter ended Jul. 31, 2015. The company has earned $23.62 million, or $0.19 a share in the quarter, compared with $16.16 million, or $0.15 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $40.90 million, or $0.32 a share compared with $50.73 million or $0.37 a share, a year ago.

Revenue during the quarter went down marginally by 0.10 percent to $602.93 million from $603.56 million in the previous year period. Gross margin for the quarter expanded 102 basis points over the previous year period to 44.76 percent. Total expenses were 92.63 percent of quarterly revenues, down from 93.87 percent for the same period last year. This has led to an improvement of 124 basis points in operating margin to 7.37 percent.

Operating income for the quarter was $44.45 million, compared with $37 million in the previous year period.

However, the adjusted operating income for the quarter stood at $61.23 million compared to $71.16 million in the prior year period. At the same time, adjusted operating margin contracted 163 basis points in the quarter to 10.16 percent from 11.79 percent in the last year period.

"We delivered strong financial performance in our fiscal third quarter, including increased profitability and cash generation, demonstrating our ability to deliver on our business model and drive continued operating leverage," said Gary B. Smith, president and chief executive officer of Ciena. "Despite short-term revenue headwinds related to the timing of network implementations at certain large service provider customers, fundamental demand drivers for our business remain strong."

For the fourth-quarter, Ciena Corp forecasts revenue to be in the range of $665 million to $700 million.

Operating cash flow improves significantly
Ciena Corporation has generated cash of $177.48 million from operating activities during the nine month period, up 1,011.57 percent or $161.52 million, when compared with the last year period.

The company has spent $65.68 million cash to meet investing activities during the nine month period as against cash outgo of $89.97 million in the last year period.

Cash flow from financing activities was $3.86 million for the nine month period, down 98.52 percent or $256.87 million, when compared with the last year period.

Cash and cash equivalents stood at $697.09 million as on Jul. 31, 2015, up 30.81 percent or $164.21 million from $532.88 million on Jul. 31, 2014.

Working capital increases sharply
Ciena Corporation has recorded an increase in the working capital over the last year. It stood at $1,174.71 million as at Jul. 31, 2015, up 32.10 percent or $285.45 million from $889.26 million on Jul. 31, 2014. Current ratio was at 2.98 as on Jul. 31, 2015, up from 2.10 on Jul. 31, 2014.

Cash conversion cycle (CCC) has decreased to 80 days for the quarter from 97 days for the last year period. Days sales outstanding were almost stable at 81 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 55 days for the quarter compared with 80 days for the previous year period. At the same time, days payable outstanding went down to 56 days for the quarter from 63 for the same period last year.

Debt comes down
Ciena Corporation has recorded a decline in total debt over the last one year. It stood at $1,279.26 million as on Jul. 31, 2015, down 12.63 percent or $184.96 million from $1,464.22 million on Jul. 31, 2014. Total debt was 59.12 percent of total assets as on Jul. 31, 2015, compared with 69.71 percent on Jul. 31, 2014. Debt to equity ratio was at 7.19 as on Jul. 31, 2015, up from 32.43 as on Jul. 31, 2014. Interest coverage ratio improved to 3.74 for the quarter from 3.22 for the same period last year.