Slide 1: Fiscal Q1 2025 Earnings Presentation
Ciena Corporation Fiscal Q1 2025 Earnings Presentation Period ended February 1, 2025 March 11, 2025 © Ciena Corporation 2025. 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 and Ciena's portfolio 2. Industry context and addressable market expansion 3. Ciena is positioned for accelerated growth 4. Fiscal Q1 2025 financial performance 5. Fiscal Q2 and full-year 2025 outlook 6. Appendix 3 © Ciena Corporation 2025. All rights reserved. Propriet
Slide 4: Overview and Ciena's portfolio
Overview and Ciena's portfolio © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 5: Ciena is the global leader in high-speed connectivity
Ciena is the global leader in high-speed connectivity Ciena provides networking systems, services, and software We build the most adaptive networks in the industry, enabling customers to anticipate and meet ever-increasing digital demands. Prioritizing collaborative relationships with our customers,
Slide 6: Evolving our customers' business with the Adaptive Network
Evolving our customers’ business with the Adaptive Network 6 © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 7: Our strategy leverages our Optical technology to create expanded addressable market opportunities
Our strategy leverages our Optical technology to create expanded addressable market opportunities 7 © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 8: Industry context and addressable market expansion
Industry context and addressable market expansion © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 9: Increasing bandwidth consumption as a driver of network expansion
Increasing bandwidth consumption as a driver of network expansion 9 © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 10: Our core business is enabling investment in higher-growth markets
Our core business is enabling investment in higher-growth markets 1 Sources: Dell'Oro, CignalAI, LightCounting, and Ciena internal analysis. 10 © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 11: An industry leader
An industry leader #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 #1 N. America #1 N. Americ
Slide 12: Ciena is positioned for accelerated growth
Ciena is positioned for accelerated growth © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 13: Our future growth opportunity
Our future growth opportunity Long-term growth in core business plus new addressable markets provide an opportunity to outpace our traditional revenue CAGR over time 13 © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 14: Our portfolio addresses key network applications
Our portfolio addresses key network applications 14 © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 15: We expect coherent technology will have growing application in the AI era
We expect coherent technology will have growing application in the AI era 15 © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 16: Q1 FY 2025 results
Q1 FY 2025 results © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 17: Q1 FY 2025 key highlights
Q1 FY 2025 key highlights Prioritizing long term Achieving balanced growth Driving the pace of innovation shareholder value Service Provider revenue grew 14% YoY • Added 20 new WL6e customers in the • Total shareholder return five-year CAGR of quarter bringing total customers shipped to 16% 1 Non-te
Slide 18: Q1 FY 2025 comparative financial highlights
Q1 FY 2025 comparative financial highlights Q1 FY 2025 Q1 FY 2024 Revenue $1,072.3M $1,037.7M Adjusted Gross Margin* 44.7% 45.7% Adjusted Operating Expense* $347.4M $336.8M Adjusted Operating Margin* 12.3% 13.2% Adjusted EBITDA* $156.5M $160.0M Adjusted EPS* $0.64 $0.66 * Reconciliations of these no
Slide 19: Q1 FY 2025 comparative operating metrics
Q1 FY 2025 comparative operating metrics Q1 FY 2025 Q1 FY 2024 Cash and investments $1.32B $1.48B Cash provided by operations $104M $266M DSO 90.0 88.0 Inventory Turns 2.3 1.9 Gross Leverage 3.35x 2.42x Net Debt $283M $148M 19 © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 20: Revenue by segment
Revenue by segment (Amounts in millions) Q1 FY 2025 Q1 FY 2024 Revenue %** Revenue %** Networking Platforms Optical Networking $728.0 67.9 $695.8 67.1 Routing and Switching 93.2 8.7 111.4 10.7 Total Networking Platforms 821.2 76.6 807.2 77.8 Platform Software and Services 95.1 8.9 89.7 8.6 Blue Plan
Slide 21: Revenue derived from non-telco customers
Revenue derived from non-telco customers 21 © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 22: Revenue by geographic region
Revenue by geographic region 10.8% 11.1% 10.8% 13.4% 10.1% 9.4% 14.7% 20.0% 17.1% 14.3% 69.2% 72.8% 76.3% 75.8% 74.2% 22 © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 23: Business outlook
Business outlook © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 24: Economic considerations and assumptions in our 2025 outlook
Economic considerations and assumptions in our 2025 outlook Business Assumptions Revenue Assumptions Profitability Assumptions • Macro environment does not significantly • We secure increased orders from Service • Operating expense increases moderately worsen or result in any adverse effects on Prov
Slide 25: Business outlook
Business outlook1 Q2 FY 2025 Revenue $1.05B to $1.13B Adjusted Gross Margin Low 40s% Adjusted Operating Expense Approximately $355M Full Fiscal Year 2025 Revenue Growth Toward the high end of 8% to 11% Adjusted Gross Margin 42% to 44% Adjusted Operating Expense An average of $350M to $360M per quart
Slide 26: Q1 FY 2025 appendix
Q1 FY 2025 appendix © Ciena Corporation 2025. All rights reserved. Proprietary Information.
Slide 27: Gross Profit Reconciliation
Gross Profit Reconciliation (Amounts in thousands) Q1 FY 2025 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 GAAP gross profit $471,821 $460,022 $403,945 $388,661 $466,962 Share-based compensation-products 1,750 1,736 1,660 1,760 1,318 Share-based compensation-services 3,405 3,257 3,122 3,344 3,020 Amo
Slide 28: Operating Expense and Income from Operations Reconciliation
Operating Expense Reconciliation (Amounts in thousands) Q1 FY 2025 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 GAAP operating expense $391,158 $400,812 $377,202 $392,626 $382,333 Share-based compensation-research and development 14,237 14,065 13,118 14,066 12,880 Share-based compensation-sales and m
Slide 29: Net Income (Loss) Reconciliation
Net Income (Loss) Reconciliation (Amounts in thousands) Q1 FY 2025 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 GAAP net income (loss) $44,572 $37,028 $14,230 $(16,849) $49,547 Exclude GAAP provision for income taxes 24,022 10,993 2,125 820 21,956 Income (loss) before income taxes 68,594 48,021 16,35
Slide 30: 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 2025 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 (EBITDA) Net income (loss) (GAAP) $44,572 $37,028 $14,230 $(16,849) $49,547 Add: Interest e
Slide 31: Thank You
Thank You © Ciena Corporation 2025. All rights reserved. Proprietary Information.