Slide 1: Earnings Presentation, Period ended July 31, 2021
Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Ciena Corporation Period ended July 31, 2021 September 2, 2021 Earnings Presentation
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
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
Slide 4: Q3 2021 results
4Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q3 FY 2021 results
Slide 5: Q3 2021 key achievements
5Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q3 FY 2021 key achievements • WaveLogic™ 5 Extreme (WL5e) added 11 new wins, bringing our total number of revenue customers to 106 ▪ Blue Planet revenue grew 47% YoY ▪ 10 wins in our Routing and Switching portfolio We
Slide 6: Market context
6Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Market context
Slide 7: Six mega trends and the innovations that will enable them
7Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Six 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
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 ◦ DATA CENTER INTERCONNECT ◦ TOTAL OPTICAL NETWORKING ◦ OPTICAL PACKET ◦ TOTAL WDM ◦ LH WD
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
Slide 10: Technical and professional services: 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
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
Slide 12: Q3 2021 results
12Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q3 FY 2021 results
Slide 13: Q3 2021 key highlights
13Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q3 FY 2021 key highlights ▪ Non-telco represented 42% of total revenue • Direct web-scale increased 24% sequentially, representing 25% of total revenue ▪ EMEA revenue increased 16% YoY, representing 19% of total reve
Slide 14: Year-over-year comparisons
14Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q3 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
Slide 15: Comparative operating metrics
15Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q3 FY 2021 comparative operating metrics Q3 FY 2021 Q3 FY 2020 Cash and Investments $1.5B $1.2B Cash Flow from Operations $69M $175M DSO 89 75 Inventory Turns 4.5 4.8 Gross Leverage 1.1x 1.1x Net Cash $724.2M $410.0M
Slide 16: Comparative financial highlights
16Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q3 FY 2021 comparative financial highlights * A reconciliation of these non-GAAP measures to our GAAP results is included in the press release for the relative period. Q3 FY 2021 Q3 FY 2020 Revenue $988.1M $976.7M Ad
Slide 17: Revenue by segment
17Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Revenue by segment (Amounts in millions) Q3 FY 2021 Q3 FY 2020 Revenue %** Revenue %** Networking Platforms Converged Packet Optical 712.9 72.1 722.5 74.0 Routing and Switching 69.7 7.1 79.8 8.1 Total Networking Plat
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 42.1% of total revenue in Q3 FY 2021
Slide 19: Revenue by geographic region
19Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Revenue by geographic region 17% 14% 11% 11%10% 19% 20% 19% 19% 73% 64% 66% 70% 70% 17%
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
Slide 21: Appendix
21Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q3 FY 2021 appendix
Slide 22: Gross Profit Reconciliation
22Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 GAAP gross profit $474,550 $412,419 $357,891 $404,349 $464,681 Share-based compensation-products 1,037 498 953 724 960 Share-based compensation-services 1,315 1,
Slide 23: Operating expense reconciliation
23Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 GAAP operating expense $326,027 $278,790 $282,096 $310,866 $276,645 Share-based compensation-research and development 5,541 5,844 4,794 4,030 4,286 Share-based c
Slide 24: Adjusted net income reconciliation
24Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 GAAP net income $238,232 $103,117 $55,348 $65,041 $142,267 Exclude GAAP provision (benefit) for income taxes (96,690) 21,453 11,966 20,798 38,750 Income before i
Slide 25: EBITDA reconciliation
25Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 Q3 FY 2020 Net income (GAAP) $238,232 $103,117 $55,348 $65,041 $142,267 Add: Interest expense 7,776 7,