Slide 1: Earnings Presentation
Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Ciena Corporation Period ended October 30, 2021 December 9, 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. These statements are based on current expectations,
Slide 3: Fiscal 2021 results
3Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Fiscal 2021 results
Slide 4: FY 2021 key achievements
4Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. FY 2021 key achievements ▪ WL5 Extreme (WL5e) total number of customers of 140 including 75 in 2021 ▪ 41 wins in our Routing and Switching portfolio and expanded our portfolio of offerings ▪ Blue Planet revenue grew 2
Slide 5: FY 2021 comparative financial highlights
5Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. 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. FY 2021 FY 2020 Revenue $3.62B $3.53B Adjusted Gross
Slide 6: FY 2021 comparative operating metrics
6Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. FY 2021 comparative operating metrics FY 2021 FY 2020 Cash and investments $1.67B $1.32B Cash from operations $542M $494M DSO 98 82 Inventory Turns 4.1 4.6
Slide 7: Market context
7Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Market context
Slide 8: Market leadership rankings
8Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. #1 GLOBALLY ◦ DATA CENTER INTERCONNECT ◦ PURPOSE-BUILT/COMPACT MODULAR DCI ◦ INTERNET CONTENT PROVIDER CUSTOMERS ◦ CABLE MSO CUSTOMERS ◦ LH WDM #1 N. AMERICA ◦ DATA CENTER INTERCONNECT ◦ TOTAL OPTICAL NETWORKING ◦ OPT
Slide 9: Six mega trends driving network investment
9Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Six mega trends driving network investment
Slide 10: Fiscal 2021 results
10Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 Fiscal 2021 results
Slide 11: FY 2021 key highlights
11Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 FY 2021 key highlights ▪ Non-telco represented 39% of total revenue ▪ Direct web-scale contributed 18% of total revenue ▪ APAC contributed 12% of total revenue ▪ Blue Planet was up 19% QoQ Achieving balanced growt
Slide 12: FY 2021 financial highlights
12Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 FY 2021 financial highlights* * A reconciliation of these non-GAAP measures to our GAAP results is included in the appendix to this presentation. Q4 FY 2021 Q4 FY 2020 Revenue $1,041M $828M Adjusted Gross Margin*
Slide 13: FY 2021 comparisons (year-over-year)
13Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 FY 2021 comparisons (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 Marg
Slide 14: Revenue by segment
14Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Revenue by segment (Amounts in millions) Q4 FY 2021 Q4 FY 2020 Revenue %** Revenue %** Networking Platforms Converged Packet Optical 754.6 72.5 579.3 69.9 Routing and Switching 74.2 7.1 56.0 6.8 Total Networking Plat
Slide 15: Continued strength derived from non-telco revenue
15Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Continued strength derived from non-telco revenue *represents 39% of total revenue in Q4 FY 2021
Slide 16: Revenue by geographic region
16Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Revenue by geographic region 17% 14% 11% 11% 12% 19% 20% 19% 19% 16% 64% 66% 70% 70% 72%
Slide 17: FY 2021 balance sheet and operating metrics
17Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 FY 2021 balance sheet and operating metrics Cash and Investments $1.67B Cash Flow from Operations $255M Free Cash Flow $243M Inventory Turns 5.0 Gross Leverage 1.1x Net Cash $927M
Slide 18: Delivering consistent financial performance
18Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Delivering consistent financial performance *FY 2021 includes Q4 consensus for industry average and midpoint of Ciena’s Q1 FY22 guide 1. ACIA has been removed from the list since 2021 after acquisition 2. INFN repres
Slide 19: Delivering profitability and total shareholder return
19Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Delivering profitability and total shareholder return 25.6% 5 year CAGR Source: company disclosures and S&P Capital IQ *Represents 11/1/2016-10/30/2021
Slide 20: Fiscal 2021 appendix
20Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 Fiscal 2021 appendix
Slide 21: Gross Profit Reconciliation
21Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 FY 2021 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 GAAP gross profit $477,119 $474,550 $412,419 $357,891 $404,349 Share-based compensation-products 920 1,037 498 953 724 Share-based compensation-services 1,240 1,
Slide 22: Operating expense reconciliation
22Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 FY 2021 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 GAAP operating expense $339,710 $326,027 $278,790 $282,096 $310,866 Share-based compensation-research and development 5,684 5,541 5,844 4,794 4,030 Share-based c
Slide 23: Net income reconciliation
23Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Q4 FY 2021 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 GAAP net income $103,499 $238,232 $103,117 $55,348 $65,041 Exclude GAAP provision (benefit) for income taxes 25,826 (96,690) 21,453 11,966 20,798 Income before i
Slide 24: EBITDA reconciliation
24Copyright © Ciena Corporation 2021. All rights reserved. Proprietary information. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q4 FY 2021 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 Q4 FY 2020 Net income (GAAP) $103,499 $238,232 $103,117 $55,348 $65,041 Add: Interest expense 7,916 7,