Slide 1: Ciena Corporation Fiscal Q3 2024 Earnings Presentation
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Ciena Corporation Fiscal Q3 2024 Earnings Presentation Period ended July 27, 2024 September 4, 2024
Slide 2: Forward-looking statements and non-GAAP measures
© Ciena Corporation 2024. All rights reserved. Proprietary Information.2 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, financ
Slide 3: Table of Contents
© Ciena Corporation 2024. All rights reserved. Proprietary Information.3 Table of Contents 1. Overview & Ciena's portfolio 2. Industry context & addressable market expansion 3. Fiscal Q3 2024 financial performance 4. Appendix
Slide 4: Overview & Ciena's portfolio
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Overview & Ciena's portfolio
Slide 5: Ciena is an industry-leading global networking systems, services, and software company
© Ciena Corporation 2024. All rights reserved. Proprietary Information.5 Ciena is an industry-leading global networking systems, services, and software company
Slide 6: Our vision for networking: How it works
© Ciena Corporation 2024. All rights reserved. Proprietary Information.6 Our vision for networking: How it works
Slide 7: Industry context & addressable market expansion
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Industry context & addressable market expansion
Slide 8: Increasing bandwidth consumption as a driver of network expansion
© Ciena Corporation 2024. All rights reserved. Proprietary Information.8 Increasing bandwidth consumption as a driver of network expansion
Slide 9: Our strategy leverages our Optical technology to create expanded addressable market opportunities
© Ciena Corporation 2024. All rights reserved. Proprietary Information.9 Our strategy leverages our Optical technology to create expanded addressable market opportunities
Slide 10: Our addressable market expansion strategy allows us to access higher growth markets
© Ciena Corporation 2024. All rights reserved. Proprietary Information.10 Our addressable market expansion strategy allows us to access higher growth markets 1Sources: LightCounting and Ciena internal analysis.
Slide 11: Our market leadership
© Ciena Corporation 2024. All rights reserved. Proprietary Information.11 Our market leadership Optical Transport Report, 2Q24Optical Networking Report, 1Q24 Service Provider Switching & Routing Report, 2Q24 Transport Hardware Report, 2Q24 #1 Globally • Data center interconnect • Purpose-built/compa
Slide 12: Fiscal Q3 2024 financial results
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Q3 FY 2024 results
Slide 13: Key highlights
© Ciena Corporation 2024. All rights reserved. Proprietary Information.13 Q3 FY 2024 key highlights ▪ Non-telco represented 46% of total revenue ▪ Direct Cloud Provider revenue grew 9% sequentially ▪ India revenue grew 9% sequentially ▪ Blue Planet revenue nearly doubled YoY • Continued traction wit
Slide 14: Comparative financial highlights
© Ciena Corporation 2024. All rights reserved. Proprietary Information.14 Q3 FY 2024 comparative financial highlights * Reconciliations of these non-GAAP measures to our GAAP results are included in the Appendix and in the press release for the relative period. Q3 FY 2024 Q3 FY 2023 Revenue $942.3M
Slide 15: Comparative operating metrics
© Ciena Corporation 2024. All rights reserved. Proprietary Information.15 Q3 FY 2024 comparative operating metrics Q3 FY 2024 Q3 FY 2023 Cash and investments $1.21B $1.28B Cash provided by (used in) operations $(159)M $9M DSO 100.0 96.0 Inventory Turns 1.8 1.7 Gross Leverage 3.08x 2.54x Net Debt $40
Slide 16: Revenue by segment
© Ciena Corporation 2024. All rights reserved. Proprietary Information.16 Revenue by segment (Amounts in millions) Q3 FY 2024 Q3 FY 2023 Revenue %** Revenue %** Networking Platforms Optical Networking $606.8 64.4 $719.0 67.3 Routing and Switching 92.7 9.8 127.6 11.9 Total Networking Platforms 699.5
Slide 17: Revenue derived from non-telco customers
© Ciena Corporation 2024. All rights reserved. Proprietary Information.17 Revenue derived from non-telco customers
Slide 18: Revenue by geographic region
© Ciena Corporation 2024. All rights reserved. Proprietary Information.18 Revenue by geographic region 15.5% 14.5% 10.1% 14.4% 14.5% 17.1% 70.1% 71.0% 69.2% 72.8% 20.0% 10.8% 9.4% 14.3% 76.3%
Slide 19: Appendix
© Ciena Corporation 2024. All rights reserved. Proprietary Information. Q3 FY 2024 appendix
Slide 20: Gross Profit Reconciliation
© Ciena Corporation 2024. All rights reserved. Proprietary Information.20 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 GAAP gross profit $403,945 $388,661 $466,962 $486,281 $448,941 Share-based compensation-products 1,660 1,760 1,318 1,194 1,118 Share-based compensation-services 3,122 3,34
Slide 21: Operating expense and operating income reconciliation
© Ciena Corporation 2024. All rights reserved. Proprietary Information.21 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 GAAP operating expense $377,202 $392,626 $382,333 $394,979 $370,727 Share-based compensation-research and development 13,118 14,066 12,880 11,412 10,954 Share-based compen
Slide 22: Net income reconciliation
© Ciena Corporation 2024. All rights reserved. Proprietary Information.22 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 GAAP net income (loss) $14,230 $(16,849) $49,547 $91,199 $29,733 Exclude GAAP provision (benefit) for income taxes 2,125 820 21,956 (20,681) 34,608 Income (loss) before in
Slide 23: EBITDA reconciliation
© Ciena Corporation 2024. All rights reserved. Proprietary Information.23 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 Net income (loss) (GAAP) $14,230 $(16,849) $49,547 $91,199 $29,733 Add: Interest expense 24,401 23,86