Slide 1: Fiscal Q1 2024 Earnings Presentation
Ciena Corporation Fiscal Q1 2024 Earnings Presentation Period ended January 27, 2024 March 7, 2024 © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 2: Forward-looking statements and non-GAAP measures
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. F
Slide 3: Table of Contents
Table of Contents 1. Overview & Ciena's portfolio 2. Market context 3. Fiscal Q1 2024 financial performance 4. Fiscal Q2 and full year 2024 outlook 5. Appendix 3 © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 4: Overview
Overview © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 5: Ciena is an industry-leading global networking systems, services, and software company
Ciena is an industry-leading global networking systems, services, and software company 5 © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 6: The Adaptive Network enables open, programmable, and sustainable networks
The Adaptive Network enables open, programmable, and sustainable networks 6 © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 7: Market context
Market context © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 8: Mega-trends driving persistent network traffic growth
Mega-trends driving persistent network traffic growth 8 © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 9: Our market leadership
Our market leadership #1 Globally #1 Globally #1 Globally • Purpose-built/compact modular DCI • Purpose-built/compact modular DCI • Data center interconnect • SLTE WDM • Optical for cloud and colo • Optical for internet content provider • Access switching • SLTE WDM customers • Routing/Access #1 N.
Slide 10: Next-Gen Metro and Edge is a strategic growth segment
Next-Gen Metro and Edge is a strategic growth segment Fiber Broadband Access is a key driver in this space 10 © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 11: Q1 FY 2024 results
Q1 FY 2024 results © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 12: Q1 FY 2024 key highlights
Q1 FY 2024 key highlights Prioritizing long term Achieving balanced growth Driving the pace of innovation shareholder value ▪ Non-telco represented a record high • Customer traction continues with WL5e • Total shareholder return five-year 54% of total revenue 800G technology, reaching 270 CAGR of 7%
Slide 13: Q1 FY 2024 comparative financial highlights
Q1 FY 2024 comparative financial highlights Q1 FY 2024 Q1 FY 2023 Revenue $1,037.7M $1,056.5M Adjusted Gross Margin* 45.7% 43.7% Adjusted Operating Expense* $336.8M $329.3M Adjusted Operating Margin* 13.2% 12.6% Adjusted EBITDA* $160.0M $155.1M Adjusted EPS* $0.66 $0.64 * Reconciliations of these no
Slide 14: Q1 FY 2024 comparative operating metrics
Q1 FY 2024 comparative operating metrics Q1 FY 2024 Q1 FY 2023 Cash and investments $1.48B $1.16B Cash provided by (used in) $266M $(266)M operations DSO 88.0 103.0 Inventory Turns 1.9 1.7 Gross Leverage 2.42x 3.05x Net Debt $148M $471M 14 © Ciena Corporation 2023. All rights reserved. Proprietary I
Slide 15: Revenue by segment
Revenue by segment (Amounts in millions) Q1 FY 2024 Q1 FY 2023 Revenue %** Revenue %** Networking Platforms Optical Networking $695.8 67.1 $735.6 69.6 Routing and Switching 111.4 10.7 119.5 11.3 Total Networking Platforms 807.2 77.8 855.1 80.9 Platform Software and Services 89.7 8.6 73.4 6.9 Blue Pl
Slide 16: Record revenue derived from non-telco customers
Record revenue derived from non-telco customers 16 © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 17: Revenue by geographic region
Revenue by geographic region 15% 14% 13% 16% 11% 15% 15% 15% 14% 20% 72% 70% 70% 71% 69% 17 © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 18: Business outlook
Business outlook © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 19: Economic considerations and assumptions in our fiscal 2024 outlook
Economic considerations and assumptions in our fiscal 2024 outlook Business Assumptions Revenue Assumptions Profitability Assumptions • Macro environment does not significantly • We secure increased orders, particularly • Operating expense increases moderately worsen or result in any adverse effects
Slide 20: Business outlook
Business outlook1 Q2 FY 2024 Revenue $850M to $930M Adjusted Gross Margin Low-40s% Adjusted Operating Expense Approximately $340M to $345M Fiscal full year 2024 Revenue $4.0B to $4.3B Adjusted Gross Margin Mid-40s% Adjusted Operating Expense Average $340M to $345M per quarter 1 Projections or outloo
Slide 21: Q1 FY 2024 appendix
Q1 FY 2024 appendix © Ciena Corporation 2023. All rights reserved. Proprietary Information.
Slide 22: Gross Profit Reconciliation
Gross Profit Reconciliation (Amounts in thousands) Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 GAAP gross profit $466,962 $486,281 $448,941 $487,683 $455,946 Share-based compensation-products 1,318 1,194 1,118 1,155 1,051 Share-based compensation-services 3,020 2,827 2,687 2,659 2,297 Amo
Slide 23: Operating Expense Reconciliation
Operating Expense Reconciliation (Amounts in thousands) Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 GAAP operating expense $382,333 $394,979 $370,727 $384,870 $370,730 Share-based compensation-research and development 12,880 11,412 10,954 10,731 9,234 Share-based compensation-sales and ma
Slide 24: Net Income Reconciliation
Net Income Reconciliation (Amounts in thousands) Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 GAAP net income $49,547 $91,199 $29,733 $57,654 $76,241 Exclude GAAP provision (benefit) for income taxes 21,956 (20,681) 34,608 29,821 25,078 Income before income taxes 71,503 70,518 64,341 87,47
Slide 25: Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) (Amounts in thousands) Earnings Before Interest, Tax, Depreciation and Amortization Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 (EBITDA) Net income (GAAP) $49,547 $91,199 $29,733 $57,654 $76,241 Add: Interest expense 23
Slide 26: Thank You
Thank You © Ciena Corporation 2023. All rights reserved. Proprietary Information.