Ciena Corporation · NYSE:CIEN

Ciena — Q2 2021 Earnings Presentation

25 slides from Ciena's earnings presentation, Jun 3, 2021

  1. Slide 1: Earnings Presentation, Period ended May 1, 2021

    Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Ciena Corporation Period ended May 1, 2021 June 3, 2021 Earnings Presentation

  2. Slide 2: Forward-looking statements and non-GAAP measures

    2Copyright © Ciena Corporation 2021. 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 that involve risks and uncertainties. These statement

  3. Slide 3: COVID-19 response

    3Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. COVID-19 response • Prioritizing health of employees and following CDC guidance for employers • The vast majority of our employees are working remotely • Instituted pandemic employee benefits • Enhanced our corporate

  4. Slide 4: Q2 2021 results

    4Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q2 FY 2021 results

  5. Slide 5: Q2 2021 key achievements

    5Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q2 FY 2021 key achievements • WaveLogic™ 5 Extreme (WL5e) added 16 new wins, bringing our total number of revenue customers to 95 • Blue Planet has roughly 200 total customers for our automation software and services

  6. Slide 6: Market context

    6Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Market context

  7. Slide 7: Several mega trends and the innovations that will enable them

    7Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Several mega trends and the innovations that will enable them Fiber Deep (Cable/MSO) Cloud Data Center Mobility & 5G IoT & Connected Objects Living a Hybrid Life

  8. Slide 8: Market leadership positions

    8Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. #1 GLOBALLY ◦ DATA CENTER INTERCONNECT ◦ INTERNET CONTENT PROVIDER CUSTOMERS ◦ PURPOSE-BUILT/COMPACT MODULAR DCI #1 N. AMERICA ◦ TOTAL OPTICAL NETWORKING ◦ DATA CENTER INTERCONNECT ◦ OPTICAL PACKET ◦ TOTAL WDM ◦ LH WD

  9. Slide 9: Ciena's Adaptive Network vision and portfolio

    9Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Ciena’s Adaptive Network™ vision and portfolio

  10. Slide 10: Our vision for a new network end-state

    10Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Technical and professional services that help customers build, operate, and optimize their networks Predictive analytics and machine learning based on both big data and small data Dynamic pool of virtual and physical

  11. Slide 11: Our portfolio enabling the Adaptive Network

    11Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Our portfolio Enabling the Adaptive Network™ CIENA SERVICES A consultative approach to build, operate, and continually improve customers’ networks to accelerate their unique journey to the Adaptive Network. We bring

  12. Slide 12: Q2 2021 results

    12Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q2 FY 2021 results

  13. Slide 13: Q2 2021 key highlights

    13Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q2 FY 2021 key highlights • Non-telco represented 43% of total revenue • Direct web-scale increased Works., representing 24% of total revenue • EMEA revenue increased 10% YoY, representing nearly 19% of total revenue

  14. Slide 14: Year-over-year comparisons

    14Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q2 FY 2021comparisons (year-over-year) * A reconciliation of these non-GAAP measures to our GAAP results is included in the appendix to this presentation. Revenue (in millions) Adj. Gross Margin* Adj. Operating Margi

  15. Slide 15: Comparative operating metrics

    15Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q2 FY 2021 comparative operating metrics Cash and Investments Cash Flow from Operations DSO Q2 FY 2021 Inventory Turns Q2 FY 2020 $1.4B $225M 86 3.4 $988.5M $91M 79 5.0 Gross Leverage 1.1x 1.4x Net Cash (Debt) $696M

  16. Slide 16: Comparative financial highlights

    16Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q2 FY 2021 comparative financial highlights Revenue Adjusted Gross Margin* Adjusted Operating Expense* Adjusted Operating Margin* Q2 FY 2021 Adjusted EBITDA* Adjusted EPS* Q2 FY 2020 $833.9M 49.2% $278.7M 33.4% / tot

  17. Slide 17: Revenue by segment

    17Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Revenue by segment (Amounts in millions) Q2 FY 2021 Q2 FY 2020 Revenue %** Revenue %** Networking Platforms Converged Packet Optical 573.7 68.8 654.3 73.2 Routing and Switching 63.6 7.6 64.2 7.2 Total Networking Plat

  18. Slide 18: Continued revenue strength derived from non-telco customers

    18Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Continued revenue strength derived from non-telco customers* *represents 43.0% of total revenue in Q2 FY 2021

  19. Slide 19: Revenue by geographic region

    19Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Revenue by geographic region 10% 17% 14% 11% 11% 17% 19% 20% 19% 73% 73% 64% 66% 70% 16%

  20. Slide 20: Delivering consistent financial performance

    20Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Source: Company filings Industry Average: ACIA, ADTN, ADVA, CSCO, INFN1, JNPR and NOKIA Networks segment Delivering consistent financial performance a. INFN represents INFN+Coriant from the time the acquisition close

  21. Slide 21: Appendix

    21Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q2 FY 2021 appendix

  22. Slide 22: Gross Profit Reconciliation

    22Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 Q2 FY 2020 GAAP gross profit $412,419 $357,891 $404,349 $464,681 $413,326 Share-based compensation-products 498 953 724 960 827 Share-based compensation-services 1,421 1,20

  23. Slide 23: Operating expense reconciliation

    23Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 Q2 FY 2020 GAAP operating expense $278,790 $282,096 $310,866 $276,645 $285,838 Share-based compensation-research and development 5,844 4,794 4,030 4,286 4,822 Share-based c

  24. Slide 24: Net income and EPS reconciliation

    24Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 Q2 FY 2020 GAAP net income $103,117 $55,348 $65,041 $142,267 $91,655 Exclude GAAP provision for income taxes 21,453 11,966 20,798 38,750 25,308 Income before income taxes 1

  25. Slide 25: EBITDA reconciliation

    25Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 Q2 FY 2020 Net income (GAAP) $103,117 $55,348 $65,041 $142,267 $91,655 Add: Interest expense 7,785 7,3

Ciena — Q2 2021 Earnings Presentation on 6ix