Ciena maps return to profitability this year

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Ciena maps return to profitability this year

Alex Scroxton

Optical networking vendor Ciena has said it is targeting net profitability by the end of the financial year, having posted a string of quarterly net losses since buying Nortel's metro Ethernet network (MEN) business in November 2009.

The acquisition doubled Ciena's revenues at a stroke and brought it over 24,000 sales orders and 900 contracts, but the costs associated with the integration process have kept it from achieving overall profitability on the back of this.

In its most recent set of quarterly financials, out at the start of June, it made sales of $417.9m and a net loss of $62.7m.

Paula Graydon, Ciena's senior director of regional channel and enterprise sales said that getting the figures back in black was "the most important thing we are targeting this year."

The integration of the Nortel business is now largely complete and according to Graydon - who left Nortel before its bankruptcy to join Ciena - has been received positively by the market.

This has been accompanied by a restructuring of Ciena's BizConnect partner programme, that has seen a 50 per cent reduction in partner numbers in EMEA.

"We had one-on-one conversations and made the decision to work closer with those that had the right strategic alignments to our business," Graydon told MicroScope.

She stressed the firm had not "closed the door" on those that were cut, which have been backed off to Westcon Convergence.

Graydon added that the programme had ended up split roughly 50-50 between Ciena and Nortel partners, although a number of carrier managed services providers had been selling both vendors' kit anyway.


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