Revenue and Gross Profit - Total revenue for the quarter ended April 29, 2023, increased by 19.3% to $1,132.7 million compared to $949.2 million in the same quarter of 2022[98] - Gross profit for the quarter ended April 29, 2023, increased by 21.4% to $487.7 million, with a gross margin of 43.1%, up from 42.3% in the same quarter of 2022[98] - Product revenue for the quarter ended April 29, 2023, increased by 23.1% to $935.3 million, with product gross profit rising by 27.8% to $393.4 million[98] - Services revenue for the quarter ended April 29, 2023, increased by 4.3% to $197.3 million, but services gross profit only increased by 0.4% to $94.2 million[104] - Gross profit on products increased by $85.6 million, with product gross margin rising by 160 basis points due to improved manufacturing efficiencies and product cost reductions[105] - Gross profit on services increased by $0.3 million, but services gross margin decreased by 180 basis points due to lower margins on certain projects[105] - Gross profit increased by $157.7 million, with gross margin decreasing by 70 basis points due to lower services margins and a higher concentration of lower margin product mix[106] - Product gross profit increased by $170.5 million, with product gross margin rising by 40 basis points due to cost reductions and improved manufacturing efficiencies[106] - Services gross profit decreased by $12.8 million, with services gross margin declining by 440 basis points due to lower maintenance support revenue and losses on certain Blue Planet software service projects[106] Operating Expenses and Costs - Operating expenses decreased by $12.0 million, or 3.1%, in the second quarter of fiscal 2023 compared to the same period in fiscal 2022, primarily due to the strengthening of the U.S. Dollar against other currencies[102] - Research and development expenses increased by $64.0 million, reflecting higher employee headcount and related compensation costs, partially due to acquisitions of Benu and Tibit[109] - Selling and marketing expenses increased by $10.1 million, primarily due to higher professional services and travel costs, partially offset by lower sales commissions[109] - General and administrative expenses increased by $11.8 million, driven by higher employee headcount, compensation costs, and bad debt expenses[109] - Research and development expenses increased by $30.7 million, primarily due to higher employee headcount and related compensation costs, with $7.3 million benefiting from foreign exchange rates[131] Financial Performance and Income - Net income for the six months ended April 29, 2023 was $133.895 million, with adjustments for non-cash charges bringing the adjusted net income to $274.780 million[118] - Interest and other income increased by $36.0 million, primarily due to a $26.5 million gain from the remeasurement of the investment in Tibit and higher interest income[111] - Interest expense increased by $19.1 million due to higher interest rates on floating rate debt and additional outstanding indebtedness[111] - Provision for income taxes increased by $37.4 million, driven by higher pre-tax income and the mandatory capitalization of R&D expenses[111] - Cash used in operating activities was $35.8 million, as working capital requirements of $310.6 million exceeded net income adjusted for non-cash charges of $274.8 million[114] - The company used $310.6 million of cash for working capital during the period, with major components including $116.9 million used in accounts receivable and $162.1 million used in inventories[118][139] - Cash paid for interest during the six months ended April 29, 2023 totaled $37.5 million, including $20.4 million for the Term Loan due September 28, 2025, $8.9 million for the Term Loan due January 31, 2030, and $8.0 million for the Senior Notes due January 31, 2030[140] Debt and Financing - The net carrying value of the 2025 Term Loan was $670.0 million as of the latest reporting period[81] - The interest rate on the 2025 Term Loan was 6.69% at the end of the second quarter of fiscal 2023, while the 2030 Term Loan had an interest rate of 7.44%[121] - The company had $500.0 million outstanding principal associated with the 2030 Term Loan as of April 29, 2023, with $5.0 million payable within 12 months[122] - The company has $300 million in a senior secured asset-based revolving credit facility, $672.2 million in a senior secured term loan due 2025, $500 million in a senior secured term loan due 2030, and $400 million in 4.00% senior notes due 2030[172] - Outstanding indebtedness under credit facilities and senior notes may adversely affect liquidity, results of operations, and ability to obtain additional financing[154][155] - The company's indebtedness could limit its ability to obtain additional financing, increase vulnerability to adverse economic conditions, and reduce flexibility in planning for business changes[173] - The company's credit agreements contain covenants that limit its ability to incur additional debt, pay cash dividends, and engage in certain acquisition transactions[172] Inventory and Supply Chain - The company's backlog decreased from $4.2 billion at the end of fiscal 2022 to a lower amount in the first half of fiscal 2023 due to improved supply chain conditions[95] - As of April 29, 2023, the company had $2.2 billion in outstanding purchase order commitments to contract manufacturers and component suppliers for inventory, though some orders can be canceled or rescheduled[141][152] - Inventory increased from $374.3 million at the end of fiscal 2021 to $1.1 billion at the end of Q2 fiscal 2023 due to expanded purchase commitments and advanced orders to mitigate supply chain challenges[152] - The company's backlog grew from $1.2 billion at the end of fiscal 2020 to $4.2 billion at the end of fiscal 2022 but began moderating in Q4 fiscal 2022 and is expected to continue normalizing as supply chain conditions improve[167] - The company expects order volumes to moderate and normalize over time, with backlog reducing as supply chain conditions improve[167] - The company's inventory management is challenging, with risks of obsolescence and potential write-offs or write-downs that could adversely impact results of operations[168] - The company's reliance on securing quarterly "book to revenue" orders is expected to grow as backlog reduces, making quarterly results more difficult to predict[166] Market and Operational Risks - The company faces risks related to reliance on third-party contract manufacturers, including potential disruptions, quality issues, and supply chain constraints[153][170] - Revenue, gross margin, and operating results can fluctuate significantly quarter-to-quarter due to factors like customer spending patterns, supply chain constraints, and order deferrals[149][165] - The company is exposed to market risks related to interest rates and foreign currency exchange rates[146] - The company's reliance on third-party contract manufacturers in Canada, Mexico, Thailand, and the United States poses risks, including potential manufacturing disruptions and quality control issues[153] - The company's revenue, gross margin, and operating results can fluctuate significantly and unpredictably from quarter to quarter due to uncertain customer spending levels and changing spending patterns[165] - The company's contract manufacturers' inability or unwillingness to manufacture products could lead to significant business disruption, revenue loss, and damage to customer relationships[171] Segment Performance - Networking Platforms segment profit increased by $62.0 million, primarily due to higher sales volume and higher gross margin[135] Cash and Investments - Total cash, cash equivalents, and investments increased by $159.7 million during the first six months of fiscal 2023, reflecting proceeds from the issuance of the 2030 Term Loan and equity under the employee stock purchase plan[136] Days Sales Outstanding and Inventory Turns - Days sales outstanding (DSOs) increased from 86 to 100, and inventory turns decreased from 3.1 to 1.9 for the first six months of fiscal 2023[139] Stock Repurchase - The company repurchased $22.0 million worth of its common stock during the first six months of fiscal 2023 to satisfy employee tax withholding obligations[86] Internal Controls - Disclosure controls and procedures were effective as of the end of the period covered by the report, with no material changes in internal control over financial reporting[147][163]

Ciena Corporation (NYSE:CIEN) Q2 2023 Earnings Conference Call June 6, 2023 8:30 AM ET Company Participants Gregg Lampf - Vice President, Investor Relations Gary Smith - President and Chief Executive Officer James Moylan - Senior Vice President and Chief Financial Officer Scott McFeely - Senior Vice President, Global Products and Services Conference Call Participants Simon Leopold - Raymond James Tim Long - Barclays Amit Daryanani - Evercore Alex Henderson - Needham & Company George Notter - Jefferies Samik ...

March 6, 2023 Forward-looking statements and non-GAAP measures Ciena's actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena's business, including: the effect of broader economic and market conditions on our customers and their business; our ability to execute our business and growth strategies; the impact of supply chain constraints or disruptions; the duration and severity of the COVID- ...

Revenue Growth - Total revenue for the quarter ended January 28, 2023, was $1,056,521, an increase from $844,443 for the same period in 2022, representing a growth of approximately 25%[37]. - Revenue for the Americas region increased by 28.6% to $765.1 million for the quarter ended January 28, 2023, compared to $595.1 million for the same period in 2022[23]. - The APAC region revenue increased by 40.7% to $138.6 million for the quarter ended January 28, 2023, compared to $98.5 million for the same period in 2022[23]. - Ciena's revenue from services transferred over time was $169.3 million, which includes $103.3 million from services recognized over time[51]. - Revenue from Networking Platforms was $855,139, up 36.5% from $626,646 year-over-year, with Converged Packet Optical revenue increasing by 36.0% to $735,634[169]. Profitability - Net income for the quarter was $76,241, compared to $45,823 in the prior year, reflecting a year-over-year increase of about 66%[42]. - Gross profit increased by $71.8 million, but gross margin decreased by 230 basis points due to lower service margins and increased component costs from global supply chain shortages[16]. - Segment profit for Networking Platforms reached $202.1 million in Q1 2023, compared to $134.1 million in Q1 2022, reflecting a year-over-year increase of 50.7%[139]. - The total segment profit for all segments combined was $274.2 million in Q1 2023, compared to $235.8 million in Q1 2022, reflecting an increase of 16.3%[139]. Expenses - Research and development expenses rose by 22.5% to $181.7 million for the quarter ended January 28, 2023, compared to $148.4 million for the same period in 2022[27]. - Total operating expenses increased by 14.4% to $370.7 million for the quarter ended January 28, 2023, compared to $324.2 million for the same period in 2022[27]. - Operating expenses increased due to higher employee-related costs and professional services, reflecting the impact of acquisitions[200]. Cash Flow and Liquidity - Cash and cash equivalents increased to $1,054,549 as of January 28, 2023, up from $994,352 as of October 29, 2022, indicating a growth of approximately 6.5%[29]. - Cash flows used in operating activities for the quarter were $(265,639), compared to $(54,411) in the same quarter last year, indicating a significant increase in cash outflow[32]. - Total cash used for working capital was $392.3 million, with significant cash outflows in accounts receivable and inventories[206]. - Cash, cash equivalents, and investments decreased by $25.5 million during the first three months of fiscal 2023, totaling $1.2 billion as of January 28, 2023[205]. Acquisitions - Ciena acquired Benu and Tibit for a total of approximately $291.7 million, with $244.7 million paid in cash, enhancing its portfolio of broadband access solutions[91]. - The company incurred approximately $2.5 million in acquisition-related costs associated with the acquisitions of Benu and Tibit[91]. - The company made an acquisition that resulted in a cash outflow of $(230,048) during the quarter, compared to $(56,036) in the same period last year[32]. Inventory and Assets - The company’s inventory increased from $946.7 million at the end of fiscal 2022 to $1.2 billion at the end of the first quarter of fiscal 2023 due to supply chain constraints[164]. - Total current assets rose to $3,762,569 from $3,385,896, marking an increase of about 11%[29]. - Total liabilities increased to $2,834,202 from $2,356,771, which is an increase of approximately 20%[29]. - The reserve for inventory excess and obsolescence was $38,900 thousand as of January 28, 2023, slightly up from $36,086 thousand on October 29, 2022[84]. Market Conditions - The company expects order growth relative to revenue to continue to moderate after experiencing unprecedented order volumes from Q2 2021 to Q3 2022[10]. - Global supply chain challenges are expected to persist, impacting costs and lead times through fiscal 2023[180]. Tax and Compliance - The effective tax rate for the quarter ended January 28, 2023, was higher than the previous year due to mandatory capitalization of research and development expenses[79]. - Provision for income taxes rose to $25,078, an increase of 172.0% compared to $9,219 in the prior year[201]. Shareholder Actions - The company has repurchased an aggregate of 8.4 million shares for $500.0 million at an average price of $59.28 per share, with $500.0 million remaining under its stock repurchase program[172]. - Ciena repurchased shares worth $13.0 million during the first three months of fiscal 2023 to satisfy employee tax withholding obligations[135].

Ciena Corporation (NYSE:CIEN) Q1 2023 Earnings Conference Call March 6, 2023 8:30 AM ET Company Participants Gregg Lampf - Vice President, Investor Relations Gary Smith - President and Chief Executive Officer James Moylan - Chief Financial Officer Scott McFeely - Senior Vice President, Global Products and Services Conference Call Participants George Notter - Jefferies Tal Liani - Bank of America Samik Chatterjee - JPMorgan Paul Silverstein - Cowen & Co. Tim Long - Barclays Simon Leopold - Raymond James M ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 29, 2022 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-36250 Ciena Corporation (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of ...

Ciena Corporation (NYSE:CIEN) Q4 2022 Earnings Conference Call December 8, 2022 8:30 AM ET Company Participants Gregg Lampf - Vice President, Investor Relations Gary Smith - President and Chief Executive Officer Jim Moylan - Chief Financial Officer Scott McFeely - Senior Vice President, Global Products and Services Conference Call Participants Karan Juvekar - Morgan Stanley Paul Silverstein - Cowen Samik Chatterjee - JPMorgan Alex Henderson - Needham & Company George Notter - Jefferies Simon Leopold - Raymo ...

Ciena Corporation Earnings Presentation Period ended October 29, 2022 December 8, 2022 Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Forward-looking statements and non-GAAP measures Information in this presentation and related comments of presenters contain a number of forward-looking statements. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements includ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------|------------------------------------- ...

Ciena Corporation Earnings Presentation Period ended July 30, 2022 September 1, 2022 Copyright © Ciena Corporation 2022. All rights reserved. Proprietary information. Forward-looking statements and non-GAAP measures Information in this presentation and related comments of presenters contain a number of forward-looking statements. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include ...