Ciena Corp shareholders approve board nominees, auditor

Published 01/04/2025, 21:44
Ciena Corp shareholders approve board nominees, auditor

Ciena Corporation (NYSE:CIEN), a leader in the telecommunications equipment industry with a market capitalization of $8.73 billion, announced the results of its annual meeting of stockholders, which took place on March 27, 2025. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.65 and operates with moderate debt levels, positioning it well for future growth. The meeting saw the election of directors and the ratification of the company’s independent auditors, among other proposals.

In the election of directors, Lawton W. Fitt received 111,192,645 votes in favor, with 10,246,768 against and 75,536 abstentions. Devinder Kumar garnered 116,696,561 votes for, 4,740,525 against, and 77,863 abstentions. Both nominees were elected by a majority of the votes cast, and they will serve three-year terms expiring at the 2028 annual meeting of stockholders.

The appointment of PricewaterhouseCoopers LLP as Ciena’s independent registered public accounting firm for the fiscal year 2025 was ratified with a substantial majority of 124,980,175 votes for, 4,931,292 against, and 66,193 abstentions.

Additionally, the stockholders gave their advisory approval on executive compensation with 114,787,685 votes in favor, 6,602,755 against, and 124,509 abstentions. The advisory vote on named executive officer compensation described in the proxy materials received a majority of the affirmative votes.

Abstentions were treated as votes against in the proposals, while broker non-votes were not counted for or against and had no effect on the final outcomes.

The results of the annual meeting are based on the information provided in a recent SEC filing by Ciena Corporation. The company, incorporated in Delaware with headquarters in Hanover, MD, specializes in the manufacturing of telephone and telegraph apparatus.

The annual meeting outcomes confirm the shareholder’s support for the current direction of the company’s leadership and its financial oversight practices. Recent InvestingPro analysis shows that management has been actively buying back shares, while six analysts have revised their earnings upwards for the upcoming period. Despite the stock’s recent 13% decline over the past week, analysts maintain optimistic price targets ranging from $65 to $100 per share. For deeper insights into Ciena’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 top US stocks.

In other recent news, CIENA reported first-quarter revenue of $1.07 billion, surpassing both UBS’s and consensus estimates, with earnings per share at $0.64, exceeding the anticipated $0.44. Despite the strong financial performance, UBS adjusted its price target for CIENA to $73 from $85, maintaining a Neutral rating, while noting that the gross margin boost was due to non-recurring items. Stifel maintained a Buy rating with a $95 price target, emphasizing CIENA’s strong order momentum from cloud service providers and its leading market position in optical networking technologies. Northland upgraded CIENA’s stock rating from Market Perform to Outperform, setting a new price target of $75, citing robust demand and a 14% increase in Service Provider revenues. Needham also maintained a Buy rating but reduced the price target to $90, acknowledging the strong first-quarter results and raised full-year revenue guidance.

Lumen Technologies, in collaboration with CIENA, successfully completed a network trial, achieving a 1.2 terabit per second wavelength over 1,800 miles, showcasing advancements in high-speed optical innovation. This trial, leveraging Lumen’s Ultra-Low-Loss fiber network and CIENA’s WaveLogic 6 Extreme technology, is significant for hyperscalers and enterprises needing high bandwidth for AI and next-generation applications. The recent developments reflect CIENA’s strategic positioning and potential for continued growth in the optical networking space.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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