Ciena Corporation Fiscal Q4 2025 Earnings Presentation Period ended November 1, 2025 December 11, 2025 © Ciena Corporation 2025. ll rights reserved. Proprietary Information. Forward-looking statements and non-GAAP measures You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission (SEC) filings, recent news, financial results, supplemental financial information, and other announcements. From time to time, we exclusively post ...

Financial Performance - In the first half of 2025, the company's revenue reached 14.789 billion CNY, a year-on-year increase of approximately 37% [2] - The net profit for the same period was 4.242 billion CNY, with a net profit margin of 28.70% [3] - In Q2 2025, the company reported a revenue of 8.115 billion CNY, a quarter-on-quarter growth of about 22% [3] - The gross margin for Q2 2025 was 41.5%, an increase of nearly 5 percentage points compared to Q1 2025 [3] - The consolidated net profit for Q2 2025 was 2.552 billion CNY, with a quarter-on-quarter growth of approximately 51% [3] Business Operations - The company has seen a significant increase in demand for 800G and 400G optical modules, driven by capital expenditure from key overseas clients in AI infrastructure [4] - The company has begun gradual shipments of 1.6T products, with expectations for continued mass production in the upcoming quarters [4] - The company is actively expanding production capacity for high-end products like 1.6T and 800G to meet rising industry demand [4] Investor Q&A Highlights - The gross margin for high-end products like 1.6T is expected to be better, primarily due to the use of silicon photonics [5] - The company has strong inventory capabilities to address supply tightness in core upstream components, which is crucial given the rapid growth in demand for 800G and 1.6T [5] - The company plans to gradually increase its dividend payout ratio to share operational success with shareholders [6] - The company is observing a growing demand for optical connection solutions as the industry evolves [7] Market Outlook - The company anticipates that material costs will impact gross margins, but it remains confident in maintaining gross margin growth through product technology and bulk purchasing strategies [8] - The company has developed capabilities for 3.2T products and is in the active research phase, although market demand is currently focused on 1.6T and 800G [8] - The company is expanding both domestic and international production, with expectations for improved gross margins in the domestic market [9] Strategic Initiatives - The company is addressing foreign exchange risks by monitoring exposure and hedging against currency fluctuations [10] - There is a growing demand for data center interconnect solutions, driven by various application scenarios within data centers [11] - The company sees significant opportunities in the scale-out market due to increasing interconnect needs as clients transition from GPU to ASIC chips [12] - The company is actively developing copper connection and liquid cooling solutions, with positive progress reported [13] - The demand for ZR modules in AI data centers is expected to grow, with the company promoting its 400G ZR and 800G ZR technologies [14]